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Exam 7: Credit Cards and Consumer Loans

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Question 51

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Hillary borrowed $2,000 from her credit union to purchase a new computer.This is an example of

A) a cash loan.
B) a purchase loan.
C) a sales credit.
D) All of these.

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Question 52

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By making the minimum payment on a typical credit card,a borrower will have the debt paid off in about two years.

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Question 53

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Which of the following is an example of an unsecured debt?

A retail credit card allows the holder to make purchases at numerous businesses.

Chargebacks are the same as cash discounts.

A cash advance can be obtained by using

All types of open-end credit accounts allow multiple uses without reapplication,but some require that the entire balance be repaid each month.

The amount owed on a debt is the principal.

A retail credit card allows a customer to make purchases on credit at any of the outlets of a particular retailer or retail chain.

Which of the following credit contract clauses requires that all remaining payments on an installment debt be paid on demand of the creditor after a specific number of payments are unpaid?

If you are likely to pay your balance in full each and every month,select a credit card with

If your credit card issuer allows you to "skip a payment," interest will not be charged for the month.

Consumer credit is non-business debt used by consumers for expenditures including home mortgages.

Many installment loan contracts that use the add-on method include a prepayment penalty,a special charge to the borrower for paying off a loan earlier than the final due date.

If you purchase an item using a credit card and later take it back for a refund you will receive

As a gesture of goodwill,most companies waive the $50 fee for unauthorized use of credit cards when notified promptly of the unauthorized use.

Letters from a creditor demanding immediate payment for a past due account are referred to as

New credit card accounts sometimes come with a low introductory rate for the first few months.

Banks that issue credit cards typically impose penalty APRs on certain borrowers to raise the APR for the entire debt repayment when

Cash advance checks can be used for which of the following purposes?