Credit Cards & Loans

Question 1

A loan backed up by collateral is known as

Answer 1

Secured Loan

Question 2

The time period between the billing date and the due date on the credit card account

Answer 2

Grace Period

Question 3

Open-ended credit is also known as

Answer 3

Revolving Credit

Question 4

If you pay off a loan early and get charged a fee

Answer 4

Prepayment Penalty

Question 5

Cash advances usually have higher interest rates and interest accrues immediately. True or False

Answer 5

True

Question 6

What kind of interest rate is artificially low and lasts for a limited amount of time?

Answer 6

Teaser Rate

Question 7

What is gap insurance?

Answer 7

Pays off the remainder of the loan if the insurance payment is insufficient to do so.

Question 8

Define cooling-off rule and when it applies?

Answer 8

3 days to cancel a contract of $25 or more after signing it anywhere other than a seller’s normal place of business.

Question 9

Do virtually all products sold by merchants have implied warranties?

Answer 9

Yes

Question 10

What are lemon laws?

Answer 10

s tate laws, you can order a dealer to buy back a car sold to you that has been in the shop four or more times to fix the same problem.