Banking test Flashcards
1
Q
advantage to credit
A
buy now, pay later
2
Q
disadvantage to credit
A
ties up future income
3
Q
credit worthiness
A
5’s
4
Q
5’s
A
1- Character 2- Capital 3- Capacity 4- Collateral 5- Conditions
5
Q
a person’s assets, land, house, car
A
capital
6
Q
a person’s history of paying on time
A
character
7
Q
a person’s income
A
capacity
8
Q
a legal judgement to surrender most of your debt
A
bankrupt (except student loans)
9
Q
time between paying bill and billing date
A
grace period
10
Q
a store credit card allows you to carry a balance
A
revolving charge
11
Q
schumer box
A
place on the statement that spells out fees and terms
12
Q
amount allowed to charge on card
A
credit limit
13
Q
installment loan
A
loan with specific terms
14
Q
2nd person to sign
A
co-signer
15
Q
a loan backed by value
A
secured loan (auto loan)
