Introduction to Business

Section 2: Types of Credit

Self-Checks

1
A loan that is to be repaid in two years would be classified as _________ .
A)brief-term
B)medium-term
C)long-term
D)short-term
2
The most important factor in determining the cost of credit is the _________ .
A)amount of the loan
B)risk the creditor takes
C)length of the loan
D)risk the debtor takes
3
Credit provided by a store is called a _________ .
A)charge account
B)credit permit
C)courtesy account
D)store credit
4
A _________ credit card can be used only to buy goods or services at the business that issued the card.
A)single-function
B)single-source
C)single-purpose
D)single-use
5
Bank credit cards are issued by _________ .
A)banks
B)credit card companies
C)stores and oil companies
D)stores, banks, and oil companies
6
Travel and entertainment cards require cardholders to pay _________ each month.
A)a minimum payment
B)the full amount
C)a service fee
D)interest
7
A 15-year installment loan that is used for the purchase of a home is called a _________ loan.
A)home-improvement
B)real-estate
C)mortgage
D)single-purpose
8
Something of value the bank can take if a borrower does not make the required loan payments is called _________ .
A)certification
B)security
C)collateral
D)warrant
9
Payday advance services offer short-term loans, usually _________ days.
A)3 to 4
B)15 to 30
C)5 to 14
D)21 to 28
10
Credit card holders receive a monthly _________ showing all the purchases they have made in the last month.
A)invoice
B)report
C)letter
D)statement
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