Chapter 16 personal finance

Grace period The free period, also called ____, allows you to avoid a finance charge if you pay in full before the due date.
creditor One who lends money or the use of goods and services for the payment at a later date is called….
Credit Paying at a future date for the present use of goodds and services or money is called _.
Line of credit A(n) _ is a pre-established amount that can be borrowed on demand.
Collateral A loan on which the goods purchased with the loan serve as _ is a type of secured loan.
Open ended _ is credit where by you can ad purchases up to a set credit limit.
Close ended A loan for a specific amount that must be repaid in full, including finance charges, by a stated due date, is called _.
Cash advance A(n) _ is money borrowed against the credit card limit.
Sales finance A manufacturer-related company, called a(n) _, makes loans through authorized representatives.
loan sharks _ are unlicensed lenders who charge illegal rates.
Differed billing A service to customers called _ allows you to charge now and not be billed for several months.
Finance charge The interest you pay for the use of credit is called a _.
Service charge Almost everyone uses _ credit, whic is having work performed and paying for it later.
Retail stores Businesses called _ stores offer goods and services directly to consumers and include department stores, drugstores, and clothing stores.
Finance companies Small loan companies, also called _, charge higher interest rates and take more risk.
Usury In some states, maximum interest rates are set by _ laws.
Pawn broker A(n) _ is a legal business where loans are made based on the value of merchandise used as collateral.
Collateral Something of value that can be sold to pay a debt is often referred to as _.

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