Larry Arnold Gets a Direct Loan of Money to Go

question 168

Multiple Choice

Larry Arnold gets a direct loan of money to go on vacation with his family.There is no down payment,and he will repay the loan over the next twelve months.What type of credit did Larry use?

• A)Installment sales credit
• B)Installment cash credit
• C)Single lump-sum credit
• D)Revolving check credit
• E)Incidental credit

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Definitions:

Checks

Written, dated, and signed instruments that direct a bank to pay a specific sum of money to the bearer or to a specified person.

Compliance

Adhering to rules, standards, or laws, or the act of following orders, guidelines, or requests from others.

Extrinsic Motivation

Motivation driven by external rewards, such as money, recognition, or praise, rather than by intrinsic interest or satisfaction in the task itself.

Maximum Effort

The highest level of effort or energy someone can expend toward achieving a task or goal.