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ch.18 vocab
Question | Answer |
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installment credit | credit used when a customer makes a sizable purchase and agrees to make payments over an extended but fixed period of time. |
revolving credit | combines the features of a store credit card and installment credit. |
debit card | immediately transfers funds electronically frojm the customer's checking account to the business's account when a purchase is made |
smart card | a plastic card with an embeded microprocessor that can store and process a large amount of information. |
character | measure of a person's sense of financial responsibility or personal belieft in the obligation to pay debts. |
capacity | measure of earning power and reflects the person's potential to pay, based on current income and other financial obligations. |
capital | a measure of the credit applicant's current financial worth or ability to pay based on assets. |
conditions | an assessment of the economic enviorment, such as the economic health of a community or the nation and the extent of business competition. |
no-fault insurance | each insurance company is required to pay the losses of its insured when an accident occurs, regardless of who was responsible for the accident. |
health insurance | provides protection against the expenses of individual health care. |
disability insurance | offers payments to employees who are not able to work because of accidents or illnesses. |
life insurance | pay money upon the death of the insured to a person or persons identified in the insurance policy |
liability insurance | protects against losses from injury to people or their property that result from the products, services, or operations of the business. |
malpractice | a type of liability insurance that protects against financial loss arising from suits for negligence in providing professional services. |
bonding | pay damages to people whose losses are caused by the negligence or dishonesty of an employee or by the failure of a business to complete a contract. |
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