Introduction to Business

Section 1: Credit Essentials

Self-Checks

1
The type of credit that people use for personal reasons is called _______ credit.
A)consumer
B)individual
C)personal
D)retail
2
Credit used by a manufacturer to buy raw materials is called _______ credit.
A)commercial
B)contract
C)long-term
D)multi-purpose
3
A _______ is a measure of a person's ability and willingness to pay debts on time.
A)credit limit
B)credit line
C)credit rating
D)credit scorecard
4
In today's society using credit is _______ .
A)difficult
B)routine
C)time consuming
D)uncommon
5
Credit _______ the growth of our economy.
A)contributes to
B)controls
C)does not impact
D)stifles
6
If you buy something on credit and take six months to pay for it, your total payments will _______ the original purchase price.
A)be equal to
B)be less than
C)be more than
D)not be affected by
7
If a consumer has a $10,000 credit limit on a credit card and an outstanding balance of $7,500, the cardholder can charge _______ more to the card.
A)$2,500
B)$7,500
C)$10,000
D)$17,500
8
When you use a credit card, it is money you _______ .
A)owe
B)own
C)need
D)save
9
Late or missed payments to credit card companies _______ your credit rating.
A)do not affect
B)limit
C)lower
D)raise
10
When businesses borrow money they often pass along the cost of interest to consumers in the form of _______ .
A)finance charges
B)higher prices
C)interest and fees
D)lower wages
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