| A | B |
|---|
| If a car payment is due on the 15th of every month,this date is the: | Maturity date. |
| During which step of the credit process is the necessary loan paper work collected? | Documentation. |
| What is the credit form used by the debtor to provide information to the lender? | Application. |
| During which step of the credit process is a file reviewed for soundness? | Underwriting |
| If a person can charge up to $5,000 on a credit card, then $5,000 is the: | Credit limit |
| A good credit rating is an individual’s reputation that is: | Earned by paying bills on time. |
| How much will be paid at the end of the six months when borrowing $900 for six months at 9% interest? | $940.50 (s/b $945) |
| If a person takes out a loan on December 18, 2002 for $5,000 at 5% for two years, what is the maturity date? | December 18, 2004 |
| Which is the last step of the credit process? | Funding |
| How can a house be used when trying to secure a loan? | Collateral |
| If $500 is borrowed for three months at 10% interest, what is the cost of credit? | $12.50 |
| What is the formula to calculate interest on a loan? | I=PRT (I prefer I=(P*R)*T) |
| What is the monthly payment for an $11,000 car at 9% for three years? | $388.06 |
| When granting credit, what three things are considered? | Collateral, character, and capacity |
| What is the cost of credit for $1,000 at 8% interest for two years? | $160 |
| If a person charges $5,000 for five years at 8%, the 8% is the: | Interest |
| If a person charges $10,000 for three years at 10%, the $10,000 is the: | Principal |
| If $5000 is borrowed for three months at 10% interest, what is the cost of credit? | $120 |
| Work history is an example of a person’s: | Character |
| Who is a good credit reference? | Store that accepts your credit card |
| The cost of credit on a yearly basis is the: | Annual Percentage Rating |
