The Finance Charge for Credit Includes All of the Following

question 92

Multiple Choice

The finance charge for credit includes all of the following except

• A) Interest costs.
• B) Services charges.
• C) Credit-related insurance premiums.
• D) Appraisal fees.
• E) The amount borrowed.

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Definitions:

Price Floor

A government or regulatory-imposed price control that sets the minimum price at which a good can be sold, often to protect producers or encourage certain activities.

FICA Tax

The Federal Insurance Contributions Act (FICA) tax is a United States federal payroll tax imposed on both employees and employers to fund Social Security and Medicare programs.

Incidence

The analysis of the distributional effect of a tax or policy on different groups, focusing on who bears the cost.

Tax Imposed

A financial charge levied by a government on individuals, corporations, or goods to fund public expenditures.