Question

17. USING YOUR MONEY End of Chapter Quiz Answer True (T) or False (F): is what you give up when you spend money for 1. An alternative cost one thing and not another. accounts is called interest. 3. Getting a loan is one way to buy on credit. -4. When you get a loan, you must pay back the amount you borrowed plus interest. 5. The interest on a loan that a bank charges is usually at a lower rate than the interest the bank pays on a savings account. 6. A credit history is a record of your work experience. 7. If you have repaid past loans on time, you are likely to have a good credit rating 8. When inflation is high, your buying power also goes up. 9. Increases in the demand for goods or in the cost of production can cause inflation. 10. If you save money, you are not likely to be hurt by inflation.

Answer 1

1	False, Alternative cost is a benefit that could have been received but was not because another course of action was taken.
2	True, interest can earned by depositing in savings account.
3	True, Getting loan is the other way to buy on credit because using other's cash.
4	True, we have to repay loan amount plus interest.
5	False, interest rate on borrwings is always at higher rate than interest rate on savings.
6	False, Credit history is the past experience of repayment of borrowings.
7	True, If borrowings are repaid in time there would be a good credit rating.
8	True, in case of inflation our buying power will go up.