True/False: 2 Point Each
Indicate whether the statement is true or false.
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1. Credit always cost money.
2. Credit does not encourage impulse buying because everyone pays close attention to how they spend their
money.
3. Credit creates risk because you are spending your future income.
4. Our economic system is built on credit and without the means of buying now and paying later, the
economy would collapse.
5. It may be difficult to establish a credit rating when you have never had credit.
6. Installment debt (monthly payments) should total no more than 1/3 of your annual net income.
7. You can receive a cash advance on credit cards as a way to borrow money.
8. A credit card is not a convenient way to make a purchase; writing is a check is better.
9. Using a credit card will make it easier for you to exchange and return items.
10. Credit facilitates over-buying which increases sacrifice that must be made eventually.
Multiple CH