Economics: Credit Concepts Flashcards

The amount the borrower must pay for the use of someone else's money.

The amount originally borrowed.

<p>Consumers repay this type of loan with equal payments over a period of time.</p> Signup and view all the answers

<p>Manufactured items that people use for long periods of time before replacing them.</p> Signup and view all the answers

<p>An installment debt owed on real property (houses, buildings, or land).</p> Signup and view all the answers

<p>To accept deposits, lend money, and transfer funds among banks, individuals, and businesses.</p> Signup and view all the answers

<p>Accepts deposits and lends money like a commercial bank.</p> Signup and view all the answers

<p>Most of their business comes from savings accounts and home loans.</p> Signup and view all the answers

<p>Owned and operated by its members to provide savings accounts and low-interest loans only to its members.</p> Signup and view all the answers

<p>Takes over contracts for installment debts from stores and adds a fee for collecting the debt.</p> Signup and view all the answers

<p>Makes loans directly to consumers at high rates of interest.</p> Signup and view all the answers

<p>Allows a customer to buy goods or services from a particular company and pay for them later.</p> Signup and view all the answers

<p>Also known as a 30-day charge, has a credit limit such as $500 or $1000.</p> Signup and view all the answers

<p>The maximum amount of goods or services a person or business can buy on the promise to pay in the future.</p> Signup and view all the answers

<p>Allows you to make additional purchases from the same store even if you have not paid the previous month's bill in full.</p> Signup and view all the answers

<p>This account allows an item to be purchased and paid for through equal payments spread over a period of time.</p> Signup and view all the answers

<p>Make purchases without paying cash.</p> Signup and view all the answers

<p>Allows a person to make cashless purchases easier by enabling the customer to transfer funds electronically.</p> Signup and view all the answers

<p>The cost of credit expressed in dollars and cents.</p> Signup and view all the answers

<p>The cost of credit expressed as a yearly percentage.</p> Signup and view all the answers

<p>A private business that does credit checks.</p> Signup and view all the answers

<p>An investigation that reveals your income, any current debts, details about your personal life, and how well you have repaid debts in the past.</p> Signup and view all the answers

<p>This is a rating of the risk involved in lending money to a specific person or business.</p> Signup and view all the answers

<p>The item purchased with the loan money such as a house or car.</p> Signup and view all the answers

<p>A loan that is backed up with collateral that can be reclaimed if the loan is not paid.</p> Signup and view all the answers

<p>A loan that is given out purely based off the customer's reputation.</p> Signup and view all the answers

<p>Notices informing you that your bill payment is past-due.</p> Signup and view all the answers

<p>Someone who signs on to a loan with someone else who does not have a good credit rating.</p> Signup and view all the answers

<p>A law restricting the amount of interest that can be charged for credit.</p> Signup and view all the answers

<p>If you take out too many loans, use too many credit cards, and pile up debts that you cannot pay off, you may file for this.</p> Signup and view all the answers