1. (p. 143) Consumer credit refers to the use of debit cards for personal needs.
2. (p. 143) Consumer credit dates back to colonial times when it was extensively used by farmers.
3. (p. 143) Consumer credit allows businesses to be more efficient or more productive.
4. (p. 143) Economists recognize consumer credit as a major force in the American economy.
5. (p. 144) When used effectively, credit can help a consumer have more and enjoy more.
6. (p. 144) A trade off of credit is that it increases the amount of money that will be available to spend in the future.
7. (p. 144) A disadvantage of using credit is its use when making a hotel reservation.
8. (p. 145) During the grace period, finance charges are assessed at only half the normal rate.
9. (p. 145) Credit can indicate stability since lenders consider you a good risk.
10. (p. 145) Although credit allows immediate satisfaction of needs and desires, a greater advantage is that it increases total purchasing power.
11. (p. 146) Closed-end credit consists of loans made on a continuous basis with periodic bills for at least partial payment.
12. (p. 146) Open-end credit consists of loans made on a continuous basis with periodic bills for at least partial payment.
13. (p. 146) Closed-end credit is used for a specific purpose and involves a specific amount.
14. (p. 147) Installment sales credit is a loan that allows a consumer to purchase high-priced items.
15. (p. 147) A consumer applies for open-end credit to make a single purchase, such as a large appliance.
16. (p. 148) The least expensive loans are often provided by parents or other family members.
17. (p. 148) The most expensive loans are often provided by parents or other family members.