What is Credit?
What is credit?
What is an agreement between two parties in which one party lends money or provides goods or services to another party with the understanding that payment will be made at a later date.
The amount of money borrowed.
What is principal?
Can using Credit be free and not come with hefty charges?
What is No?
Criteria used to evaluate the creditworthiness of consumer credit applicants.
What is Three Cs of Credit?
Criteria lenders use to evaluate the creditworthiness of businesses.
What is five Cs of banking?
True of False? All credit is based on trust.
What is true?
True or false? Various types of credit are not available to individuals and businesses.
What is False?
What is an Annual percentage rate?
What is the annual cost of credit charged by a lender?
Capacity, collateral, and character are the three Cs of credit.
What is No?
What are the five Cs of banking?
What is Cash flow, capacity, capital, collateral, and conditions?
Credit granted to individual consumers by a retail business.
What is Consumer credit?
Is open-end credit typically secure?
What is yes?
The total amount paid for the use of credit is based primarily on what factors?
What is interest rate charged, amount of credit used, length of the repayment period, and simple interest?
Define the character C of the three Cs of credit.
What is Current debt, payment history, and credit scores are considered when evaluating the financial character of an individual?
What two main types of business financing does the bank provide?
What is business loans and lines of credit?
What benefits does credit provide?
Maria is borrowing money from a bank on April 4th that wants her to pay the money back buy April 14th. What type of credit is Maria using?
What is closed-end credit?
True or false? Consumer credit transactions are only regulated on the federal levels.
What is false?
Should a copy of the credit terms be provided to all customers who are approved for a credit account?
What is Yes?
Sometimes called supplier financing or vendor financing.
What is trade credit?
Sam wants to go to the bank and ask for a credit card to use only when he has emergency expenses. In this scenario, who is the debtor and who is the creditor?
What is Sam is the debtor and the bank is the creditor?
What is the difference between closed-end credit and open-end credit?
What is closed-end credit is a loan for a specific amount that must be repaid with interest by a specific time and open-ended credit is the agreement that allows the borrower to use a specific amount of credit over a period of time?
Lexy is in math class. Her teacher, Mrs. Lemon wants her to calculate the simple interest of a customer that owes money to a credit firm. What formula will Lexy use to calculate the simple interest?
What is principal(P) multiplied by rate(R) multiplied by time(T)?
A credit application that includes personal and financial information is typically completed by who?
What is the applicant?
What is true?