True/False
Indicate whether the sentence or statement is true or
false.
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| 1. | An Open Charge Account is an
account where purchases can be charged at any time but at least part of the debt must be paid each
month.
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Multiple
Choice
Identify the letter of the choice that best completes the statement or answers the
question.
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| 2. | Anyone who buys on credit or
receives a loan is known as a...... a. | debtor | b. | creditor | c. | character | d. | credit
references | | | | | | | | |
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| 3. | Which is not a type of credit
as discussed in class? a. | loan
credit | b. | trade credit | c. | charge credit | d. | sales credit | | | | | | | | |
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| 4. | Anyone who sells on credit or
makes a loan is known as a..... a. | debtor | b. | creditor | c. | character | d. | credit reference | | | | | | | | |
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| 5. | Which type of credit is used by
a business when it receives goods from a wholesaler and pays them at a later specified
date? a. | loan credit | b. | trade credit | c. | charge
credit | d. | budget credit | | | | | | | | |
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| 6. | Which is not considered to be
one of the three ‘C’s’ of credit? a. | capacity | b. | character | c. | capital | d. | compliancy | | | | | | | | |
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| 7. | Credit
is...... a. | the money paid for the use of money. | b. | a business or individual from whom you have received loans in the
past. | c. | the planned protection provided by sharing economic
loss. | d. | the privilege of using someone else’s money for a period of
time. | | |
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| 8. | When looking at the three
‘C’s’ of credit, which one refers to your ability to pay a debt when it is
due? a. | capacity | b. | character | c. | capital | d. | compliancy | | | | | | | | |
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| 9. | Which is not a type of charge
account? a. | open | b. | budget | c. | revolving | d. | bank | | | | | | | | |
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Completion
Complete each sentence or statement.
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| | 10. | This word refers to your
honesty and willingness to pay a debt when it is due. (spell your one-word answer correctly and do
not capitalize)
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