Book Opener

Consider the key terms in the list below. Then use these terms tocomplete the following exercises.annual percentage rate (APR)creditcreditorsecured loandebtorcollateralopen-end creditsecurity interestline of creditsecured partyclosed-end creditrepossessfinance chargebankruptcyinterest1. With a partner, create a script that highlights the duties betweena lender and a credit applicant. Use all of the terms listed above.2. Act out the scenario with your partner.3. Present your scenario to the class.4. As a class, vote to select the best scenario. Ensure that thewinning script correctly uses each of the key terms.Self-Check Quiz Visitthe UnderstandingBusiness and PersonalLaw Web site atubpl.glencoe.com andclick on Chapter 22:Borrowing Money andBuying on Credit—Self-Check Quizzesto prepare for thechapter exam.Answer the following questions. Refer to the chapter for additional reinforcement.5. Why should you shop around before borrowing money?6. What should you do if you have a dispute with a credit card purchase?7. What is credit card blocking, and why is it used?8. Describe the purpose of the Fair Credit Reporting Act and the Fair Credit Billing Act.How do these acts protect consumers?9. Which debts can’t be discharged when someone declares bankruptcy?10. How must a creditor go about repossessing a debtor’s property?11. When extending credit, why do lenders sometimes require cosigners?12. Compare personal with business bankruptcy.Chapter 22: Borrowing Money and Buying on Credit 501