In Comparing Credit Cards to Other Forms of Credit, Which

question 105

Multiple Choice

In comparing credit cards to other forms of credit, which of the following is true?

• A) Credit cards are generally the most expensive form of credit.
• B) You should invest funds before paying off your credit cards.
• C) It is prudent to borrow from some cards to pay off other credit cards.
• D) All of the above.

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Definitions:

Security Agreement

A written agreement that creates a security interest.

Purchase Money Security Interest (PMSI)

A special type of security interest that allows creditors to obtain priority in a debtor's collateral, provided the credit was used to purchase the collateral.

Perfected

The state of a security interest when the secured party has done everything that the law requires to give the secured party greater rights to the goods than others have.

Attaches

In legal parlance, attaches means to legally seize or take control of property, often in the context of securing a debt or executing a court order.