Solution Manual for Money, Banking and
Financial Markets 2025 Latest Version|100%
Verified
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List three ways a credit card is different from a debit card.
Credit card- buy now pay later, debit card- payment comes directly from checking accout when
purchasing items.
2. Credit card- some have rewards(free airline miles, cash back, and more), debit card- no
benefits
3. Credit card- you will pay interest if the balance on your statement is not paid in full at the end
of your grace period, debit card- no interest paid it draws money from your checking account.
What is a credit score and how does it impact your ability to borrow money?
A credit score is a number that reflects your payment history, the amount of debt you have,
creditor inquiries and negative information on your credit report like foreclosures, liens,
bankruptcies. and more.
List three characteristics of payday loans.
They are for small amounts
2. repaid in a single payment
3. payment is taken out if your checking account on your next payday
List four factors that have an impact on your credit score? Which two are the most important?
Payment history
2. amount of debt you have
3. Inquiries from creditors
4. Negative information- foreclosures, civil judgments, (liens and bankruptcy)
most important--- payment history and how you manage account
What does APR stand for and how does it affect your payment?
Annual Percentage Rate, adds interest to your payments and takes away from your principal
repayments
List two advantages of using a rent to own store.
you can rent to own with bad credit
2. try are merchandise "test drive"
List two disadvantages of using a rent to own store.
Financial Markets 2025 Latest Version|100%
Verified
_____________________________________________________________________________________
List three ways a credit card is different from a debit card.
Credit card- buy now pay later, debit card- payment comes directly from checking accout when
purchasing items.
2. Credit card- some have rewards(free airline miles, cash back, and more), debit card- no
benefits
3. Credit card- you will pay interest if the balance on your statement is not paid in full at the end
of your grace period, debit card- no interest paid it draws money from your checking account.
What is a credit score and how does it impact your ability to borrow money?
A credit score is a number that reflects your payment history, the amount of debt you have,
creditor inquiries and negative information on your credit report like foreclosures, liens,
bankruptcies. and more.
List three characteristics of payday loans.
They are for small amounts
2. repaid in a single payment
3. payment is taken out if your checking account on your next payday
List four factors that have an impact on your credit score? Which two are the most important?
Payment history
2. amount of debt you have
3. Inquiries from creditors
4. Negative information- foreclosures, civil judgments, (liens and bankruptcy)
most important--- payment history and how you manage account
What does APR stand for and how does it affect your payment?
Annual Percentage Rate, adds interest to your payments and takes away from your principal
repayments
List two advantages of using a rent to own store.
you can rent to own with bad credit
2. try are merchandise "test drive"
List two disadvantages of using a rent to own store.
