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Question 9. Question : (TCO 3) Which one of the selections can be
categorized as an advantage of credit?
The use of credit can lead to court action and bankruptcy.
The use of credit can lead to overspending.
The use of credit can lead to anxiety.
The use of credit ties up the use of future income.
The use of credit allows for the purchase of goods even when funds
are low.
Question 10. Question : (TCO 3) Mary Jones has obtained a loan that
must be paid over the next 12 months and she will use this money for a
vacation. What type of credit is being used?
Installment sales credit
Incremental credit
Single lump sum credit
Revolving credit
Installment cash credit
Question 11. Question : (TCO 3) As used in Chapter 7 of the text, float
refers to
an interest charged for only a few days.
something one enjoys in a parade.
a home equity loan.
a period when no interest is charged.