PF Ch. 18 Responsibilities and Costs of Credit

The amount of money you borrow is called the principal.

When a credit card is lost or stolen, the cardholder’s liability is limited to $100.

Credit users and creditors have responsibilities to each other.

Subtracting payments made before computing the charge describes the

Most billing cycles are of what length?

The prime rate charged by banks will be ___ the rate for consumer loans.

The creditor has the responsibility to read and understand credit terms before buying.

Garnishment is the legal process of opening a new credit account.

Which of the following is a false statement?

Too much unused credit may cause a potential creditor to consider you a poor risk.

The prime rate is the interest rate banks offer to their best business customers.

Credit above what you owe, but not up to the maximum, is called

The most expensive way to figure the finance charge for the credit user is the

You should not sign and activate your credit cards until you are ready to use them.

Keeping only a few credit cards will reduce your temptation to buy unnecessaryitems.

Encryption is a code used online to protect your personal information.

As your income increases, you should increase your outstanding credit.

The difference between cash price and total price when installment payments aremade is called

An installment contract requires a down payment.

It is not wise to charge anything under

The type of credit selected does not affect the cost of credit.

The rate of interest is expressed as a percentage.

The length of time a borrower takes to repay a loan is always expressed as a