Economics: Today and Tomorrow © 2008

Chapter 4: Going into Debt

Going into Debt

1
The largest installment of debt in the United States is money people owe _____.
A)on cars
B)on home mortgages
C)on clothes
D)on appliances
2
The benefit of using credit is _____.
A)paying lower prices for expensive durable goods
B)being able to buy and enjoy a good or service now rather than later
C)not going into debt to buy things you want
D)paying interest on borrowed funds
3
To determine which creditor is charging the most for credit, a consumer should compare _____.
A)finance charges
B)annual percentage rates
C)monthly payments
D)length of the credit agreements
4
The credit device that allows a person to make purchases without paying cash and that can be used in many different stores throughout the U.S. is known as a_____.
A)savings and loan
B)charge account
C)credit card
D)finance charges
5
The cost of credit expressed as a yearly percentage is called _____.
A)annual percentage rate
B)annual credit rate
C)charge account
D)credit card
6
A person who has lost control of debt should _____.
A)make minimum payments on credit cards
B)concentrate on paying the high-interest credit cards first
C)borrow additional money to pay off existing debt
D)get someone to co-sign the loans
7
Which of the following is a loan guaranteed only by a promise to repay it?
A)Credit rating
B)Collateral
C)Secured loan
D)Unsecured loan
8
The credit industry is regulated by _____.
A)only the federal government
B)both federal and state governments
C)only state governments
D)financial institutions
9
Debtors who declare bankruptcy must _____.
A)go to jail
B)give up most of what they own
C)pay higher interest rates
D)pay lower interest rates
10
All of the following companies provide consumers with free annual credit reports EXCEPT_____.
A)Experian
B)EEOC
C)Equifax
D)TransUnion
Glencoe Online Learning CenterSocial Studies HomeProduct InfoSite MapContact Us

The McGraw-Hill CompaniesGlencoe

Please read our Terms of Use and Privacy Notice before you explore our Web site. To report a technical problem with this Web site, please contact the Web Producer.