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2. This type of credit allow debtors (customers) to receive goods or services from suppliers (creditor) and pay for them at a later date. Charge accounts

3. Type of credit that is a contract issued by the seller that requires intermittent payments at specified times such as bi-weekly or monthly. Installment

4. Type of credit that require debtors to make monthly payments of a specified amount for a period of time. Consumer loans

5. Name 2 advantages of businesses using credit. Establishing favorable credit rating Keeping business separate from personal expenses Minimizing record-keeping and receipts Keeping track of what employees are spending Earning rewards

6. Name 2 disadvantages of businesses using credit. Experiencing theft of customer records/databases Overbuying by employees Overusing credit

7. What are the 3 factors of granting credit? 3 C’s Character Capital Capacity

8. What does capacity refer to? how much debt can comfortably be handled.

9. What does the signature on the credit application signify? Indicates provided information is true.

10. What are the 3 credit bureaus?

11. Name 2 things that could be found on a credit statement. Balance due Amounts charged or credited during the billing period Current balance Minimum amount of next payment

12. This law requires lenders to reveal the cost of credit (APR and finance charge) and terms before signing an application or contract. Truth in Lending Law

13. This law allows credit applications be judged on financial responsibility of credit applicants. The three areas of responsibilities are low income, large debts, and a poor payment record. Equal Credit Opportunity Act

14. This law requires creditors to correct billing mistakes promptly. Fair Credit Billing Act

15. What are the 3 types of credit assistance? Debt repayment plan Credit counseling Bankruptcy

16. How long does bankruptcy stay on a person’s credit report? 10 years

17. What type of risk results in a financial loss? Economic

18. What type of risk is the threat of a loss without an opportunity for gain? Pure

19. What type of risk offers the chance of gain or loss? Speculative

20. What are 3 of the 4 ways to handle risk? Avoid Transfer Insure Assume

21. Name 3 of the 6 types of uninsurable risks. Economic Conditions Consumer Demand Action of Competitors Technology Changes Local Factors Business Operations

22. This type of health insurance covers all or part of the surgeon’s fees for an operation. Surgical

23. This type of health insurance covers fees for nonsurgical care given in the doctor’s office, the patient’s home, or a hospital. Regular

24. This type of health insurance covers cost of extended and specialized care out of the hospital such as medicine and special nursing care. Major medical

25. This type of health insurance combines the features of hospital, surgical, regular, and major medical insurance. Comprehensive

26. What’s the difference between term and permanent life insurance? Term-like renting. But cheaper. Permanent-like owning a home. If you want to walk away from policy, you get the cash you put into it. More expensive.

27. Han sued a furniture store that verified it provided inaccurate information about his credit history. Which regulation would protect him in having the information corrected? Fair Credit Reporting Act

28. Fred's Electric Company receives over thirty service orders daily. The company's manager refers some of the orders to another company, since she wants to maintain a reputation of completing orders in a timely manner. How did the company handle the risks? Transfer

29. After talking with a Sears customer representative about her overdue balance, Tina implemented a strategy that will minimize her debt. Tina used which type of credit assistance? Debt repayment plan

30. GEICO Insurance Company opened several new offices to accommodate requests of policy holders for face-to-face contact. This is an example of which type uninsurable risk? Consumer demand

31. Chase Mortgage Company sends quarterly summaries of transactions. Which type of document does the company send? Statement of account

32. Many newspapers are experiencing fewer subscribers since more subscribers are now obtaining news from the Internet. This is an example of which type uninsurable risk? Technology change

33. ABC Investment Company invested over $300,000 obtained from their clients. The company gained 5% as a return on its investment. This is an example of which type of insurance risk? Speculative

34. Mary paid only $50 for unauthorized charges made to her Capital One MasterCard. Which regulation protected her? Truth in Lending

35. Mary makes prearranged equal payments monthly to Progress Energy. Which type of credit did Mary use? Charge account

36. Josh saved over $10,000 in a local bank while working on his job for the past six years. Which "C" of credit is he MOST LIKELY to meet? Capacity

37. Tonya is considering shopping at a Rooms To Go furniture store that advertises the option of payments for a period of three years. Which type of payment option was advertised? Installment

38. A local food company filed an insurance claim to compensate employees who lost personal belongings in a company fire. This is an example of which type of insurance risk? Economic

39. A bank loaned Doug $4,500 for 24 months. Which type of credit did he accept? Consumer loan

40. The Whole Foods Market provides workshops on how to prepare healthy meals. During the past three months, the attendance increased over 40%. This is an example of which type uninsurable risk? Consumer demand