FINC 2400 Chapter 8 Exam Questions Correctly Answered.

FINC 2400 Chapter 8 Exam Questions Correctly Answered. It is not difficult to find a credit card company that is eager to extend credit to you. - CORRECT ANSWER TRUE Credit cards are commonly used to pay for items such as clothing, car repairs, or a new car. - CORRECT ANSWER FALSE One advantage of credit cards is that you can receive free financing if you pay off your balance each month. - CORRECT ANSWER TRUE When using credit cards, there is no way to keep track of individual expenditures. - CORRECT ANSWER FALSE Advantages of using credit include the ability to make purchases without cash and the convenience of not carrying checks. - CORRECT ANSWER TRUE Credit cards can eliminate the need for carrying large amounts of cash. - CORRECT ANSWER TRUE When applying for a credit card, the amount of savings that you have will not be a factor in the credit card company's decision. - CORRECT ANSWER FALSE Because of the short-term nature of credit card lending, the condition of the economy is not considered. - CORRECT ANSWER FALSE One of the disadvantages of credit cards is that they allow you to spend beyond your means. - CORRECT ANSWER TRUE ) One advantage of using a credit card is that you receive a list of your purchases, which enables you to keep track of your spending. - CORRECT ANSWER TRUE The easiest way to establish credit is to A) purchase a new car with a car loan. B) purchase a house with a mortgage. C) obtain a credit card. D) pay cash for all your purchases. - CORRECT ANSWER C When you apply for a credit card, the potential creditor will look at which of the following as a source of future debt payments if necessary? A) Cash outflows B) Credit history C) Potential inheritances D) Balances in savings accounts - CORRECT ANSWER D Credit cards are generally used for such purchases as A) cars. B) homes. C) meals, clothing, and groceries. D) stocks. - CORRECT ANSWER C