Question | Answer |
What is money borrowed to buy something now, with the agreement to pay for it later called? | Loan or Credit |
What was one of the earliest forms of credit in the US? | Account with a Store |
Over spending on credit cards has had what effect on the American Consumer? | Debt |
Why do banks and stores encourage consumers to use credit? | Spend more money |
When you borrow money or use credit you are a? | Borrower |
The person of company that loans money or extends credit to you is the? | Crediter or Lender (Bank or Financial Advisor) |
What is the property that you possess that is worth more than your debts called? | Capital or Asset |
What is property pledged to assure repayment of a loan called? | Loan & Pledge Agreement |
The amount borrowed is known as the ? | Principal |
The total dollar amount of all interest and fees pay for the use of credit is called? | Financial Charge |
What is a minimum payment? | $200 |
List three advantages of credit. | Purchase power, emergency funds, safer |
List three disadvantages of credit. | Credit costs more, cost more over time, lead to over-spending |
Give an example of a company that uses revolving credit accounts. | Visa, Mastercard, Discover |
What is APR? | Annual Percentage Rate |
What are some of the reasons that a business would need to take out a loan? | Expansions, New Project |
What is equity? | Your Business's Worth |
What is the difference between a short term and long term loan? | Short term- is required to be paid off in a short time period for a shorter amount.
Long term- is required to be paid over a longer period of time for a larger amount. |
The amount of money that a business earns in a given period is called? | Income |
The amount a business makes when total revenue exceeds total expenses is called? | Net Gain |
The amount a business loses when the total revenue is less than the total expenses is called? | Net Loss |
Money that is owed is referred to as? | Liability |
The period of time in which the loan must be repaid is known as? | Loan-Term |
Name an ad you have seen on TV that tries to get you to use credit to purchase their product. | Beezid.com |