| A | B |
|---|
| The free period, also called ___________, allows you to avoid a finance charge if you pay in full before the due date. | grace period |
| One who lends money or the use of goods and services for payment at a later date is known as a/an | creditor |
| Paying at a future date for the present use of goods, services or money is called | credit |
| ________ is a pre-established amount that can be borrowed on demand. | line of credit |
| _______ is credit whereby you can add purchases up to a set credit limit. | open-ended credit |
| A loan for a specific amount that must be repaid in full, including finance charges, by a stated due date, is called | closed -ended credit |
| Total dollar amount of all interest and fees you pay for the use of credit. | finance charge |
| A responsible attitude toward paying bills and meeting obligations on time is called | character |
| A credit bureau issues a written statement called a(n) ________, which itemizes accumulated information about a person's credit | credit report |
| __________ is the ability to repay a loan or make payments on a debt out of income. | capacity |
| Existing debts, stability of employment, and personal factors that determine a person's ability to meet financial obligations are called | conditions |
| A(n) __________ is a business that accumulates, stores, and distributes credit information to members. | credit bureau |
| The total amount that is financed or borrowed, on which interest is computed, is called | principal |
| The true cost of credit expressed as a percentage | annual percentage rate |
| Money paid for the use of someone else's money | interest |
| A deposit, or _______, is often made when purchasing a large or expensive item to ensure that you will continue to make payments. | down payment |
| A person who owes money to creditors is called | debtors |
| If a person agrees to pay back a debt after it has been discharged by bankruptcy, the agreement is called | reaffirmation |
| A reorganization form of bankruptcy for individuals that allows debtors to keep their property and use their income to pay a portion of their debts three to five years. | Chapter 13 Bankruptcy |
| A form of bankruptcy for businesses that allows them to continue operating under court supervision as they repay their restructured debts. | Chapter 11 Bankruptcy |
| A liquidation form of bankruptcy for individuals that wipes out most debts in exchange for giving up most assets. | Chapter 7 Bankruptcy |
| To be declared legally insolvent, or incapable of paying one's bills | Bankrupt |
| What a debt has been ______, it does not have to be paid. | Discharged |
