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The use of money to punish
Overindulgence of children
Question 18. 18. (TCO 3) One day, Gary notices that is neighbor has
purchased a new Land Rover and it is sitting in his driveway. Gary
decides that he also needs a new car and goes out and purchases a
Hummer with a 6-year loan on it. Which reason for indebtedness is this
an example of?
Misunderstanding or lack of communication
Keeping up with the Joneses
The expectation of instant comfort
The use of money to punish
Overindulgence of children
Question 19. 19. (TCO 3) In terms of borrowing expenses, which of the
following options would be relatively the cheapest?
Car dealer
Appliance store
Department store
Relative
Finance company
Question 20. 20. (TCO 3) If Marjorie Wilcox borrows $200 for 1 year
with an APR of 12% and an annual service fee of $10, what is her total
cost of credit?
$10
$12
$24
$34
$42
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