21. In the credit card industry, what type of person is a revolver?

1. A person who applies for too many credit cards.
2. A person who pays off their total credit card balance on time every month.
3. A person who pays their minimum balance every month.
4. A credit card defaulter.

25. Credit card issuers earn income from ______________.

1. interest
2. merchant discount fee
3. annual fee
4. All of the above.

26. Which of the following statements about credit is TRUE?

1. Credit is a good way to pay for all your bills, so you can spread the cost of things over a longer period and thus afford more things.
2. Credit can be an important financial tool, but only if used responsibly.
3. Everyone receives access to credit, it is only taken away when used irresponsibly.
4. Credit is bad and is a main reason the economy continues to struggle.

27. Which is the correct description for buying on hire purchase?
    1. Borrowing to buy at low rate of interest.
    2. Taking legal ownership only after paying one third of the account.
    3. Interest free repayment for the full term.
    4. Taking legal ownership only after paying the full amount.

28. Which of the following is an example of a collateral?

1. Real estate.
2. Term life insurance.
3. Personal cheque.
4. Credit card.

29. The agency that help people with debt problem in Malaysia is _____________.

1. Consumer Association Malaysia
2. Consumer Credit Association
3. Credit Counselling and Debt Management Agency
4. A and B.

30. Your Debt Ratio is based on ___________.

1. total debt payment divided by total income available for living expenses
2. total income available for living expenses divided by total debt payment
3. total assets divided by total debt
4. total liabilities divided by total assets.

31. The difference between the market value of an asset and the amount you owe on the asset refers to __________.
    1. liquidity
    2. equity
    3. asset related liquidity
    4. negative net worth.