Economics Chapter 4 Flashcards
cost of credit expressed as a yearly percentage
annual percentage rate
the inability to pay debts based upon the income received
bankruptcy
credit extended to a consumer allowing the consumer to buy a good or service from a particular company and pay for them later
charge account
something of value that a borrower lets the lender claim if a loan is not repaid
collateral
bank offering a wide range of services
commercial bank
manufactured goods that people use for a long period of time before replacement
consumer durables
company that lends money directly to consumers at high rates of interest
consumer finance company
person who signs a loan contract along with the borrower and agrees to pay the debt if the borrower can not
cosigner
receipt of money either directly or indirectly to buy goods and services
credit
private business that investigates a person’s financial history and determines their credit worthiness
credit bureau
credit device that allows one to make purchases of many kinds at many different stores and pay for them later
credit card
maximum amount of goods or services one can buy and promise to pay in the future
credit limit
rating the risk of lending money to a particular person or business
credit rating
depository institution owned and operated by its members
credit union
credit device used to make cashless purchases of goods and services, the money coming directly from a checking or savings account
debit card
