FIN-2860 Study Guide - Quiz Guide: Financial Statement, Fair Market Value, Federal Deposit Insurance Corporation

• School: App State
• Department: Finance, Banking and Insurance
• Course: FIN-2860
• Professor: Jonathan Allen

Document Summary

Credit (p. 188): an arrangement to receive cash, goods, or services now and pay for them in the future. Using money now, that you will make later. Consumer credit: the use of credit for personal needs (except a home mortgage) Consumers pay one payment (monthly) for a multitude of purchases. Safer; not carrying around a lot of cash, gives a record of transactions, can save your life. Need a credit card to make a hotel reservation, rent a car. Temptation to overspend, especially during periods of inflation. Failure to repay a loan may result in loss of income, valuable property, and your good reputation. Overspending means using future income, which will disable you from spending that in the future. Credit cards cost money: paying the minimum payment of a balance will start interest to build up. Closed-end credit (p. 192): one-time loans that the borrower pays back in a specified period of time and in payments of equal amounts.