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chapter 18
vocabulary
Question | Answer |
---|---|
installment credit | customers agree to make a stated number of payments over a fixed period of time and at a specified interest rate |
revolving credit | combines the features of a store credit card and installment credit |
debit card | immediately transfers funds electronically from the customers's checking account to the business's account when a purchase is made |
smart card | a plastic card with an embedded microprocessor that can store and process a large amount of information |
character | a measure of a person's sense of financial responsibility or personal belief in the obligation to pay debts |
capacity | a measure of earning power and reflects the person's potential to pay, based on current income and other financial obligations |
capital | a measure of credit applicant's current financial worth or ability to pay based on assets |
conditions | an assessment of the economic environment, such as the economic health of a community or the nation and the extent of business competition |
no-fault insurance | each insurance company is required to pay the losses of its insured when an accident occurs, regardless of who is responsible |
health insurance | provides protection against the expenses of individual health care |
disability insurance | offers payments to employees who are not able to work because of accidents or illnesses |
life insurance | pays money upon death of insured person to a person or persons identified in the policy |
liability insurance | protects against the losses from injury to people or property that result from the products |
malpractice insurance | type of liability insurance that protects against financial loss arising from suits for negligence in providing professional services |
bonding | pays damages to people whose losses are caused by the negligence or dishonesty of an employee or by the failure of a business to complete a contract |