Consumer Credit

question 174

Multiple Choice

Consumer credit:

• A)is a privilege of the affluent.
• B)dates back to colonial times.
• C)carries no finance charge.
• D)is not a major force in our economy.
• E)use has been declining in recent years.

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Definitions:

Market Rate

The interest rate available in the marketplace for similar transactions.

Times Interest Earned Ratio

A financial metric that evaluates how well a company can cover its interest expenses with its earnings before interest and taxes.

Net Income

Net income, also known as net profit, is the total profit of a company after all revenues, costs, and expenses have been deducted.