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Revolving credit
Incidental credit
Question 11. One of the following financing methods typically
provides individuals with a float period. Which one of these methods
has this as an option?
Installment loan
A loan from a relative
Lump sum loan
Home equity line of credit
Credit card
Question 12. While collateralized loans may provide lower interest
rates, these loans have a disadvantage because
the loan must be repaid in a short period of time.
you ruin your credit rating.
the loan is difficult to obtain.
commercial banks do not make such loans.
the assets used as collateral are tied up until the loan has been
repaid.
Question 13. One source of the most expensive loans is through
parents.
finance companies.
banks.