Chapter 11

Question 1

A legal process in which a court takes over some of the finances of a person

Answer 1

Bankruptcy

Question 2

The ability to use a credit card to withdraw cash from a bank or ATM

Answer 2

Cash advance

Question 3

Provides individuals with revolving open end credit, which they can draw from repeatedly up to a preset limit

Answer 3

Credit card

Question 4

Performed by potential creditors to access a person’s credit report to examine the individuals credit history and the ability to repay

Answer 4

Credit check

Question 5

An entity, such as a bank, that agrees to make a certain amount of credit available to a card holder

Answer 5

Credit provider

Question 6

Combining several small accounts into one large account that may be able to be financed at a lower rate

Answer 6

Debt consolidation

Question 7

Time in which credit card companies don’t charge interest on purchases

Answer 7

Grace period

Question 8

A feature that allows a person to overdraw or exceed the credit limit

Answer 8

Overdraft protection

Question 9

Holds items in exchange for loans that run for 30 days to 3 months

Answer 9

Pawnbroker

Question 10

A lender provides cash advances at a high cost to customers who provide a check dated for sometime in the future

Answer 10

Payday lending

Question 11

Charged by credit card companies for the privilege of using their card

Answer 11

Annual fee