Quick quiz – True/False ◼ Credit has the potential to encourage overspending and ties up future income. ◼ With open-end credit, the borrower pays back a onetime loan in a specified period of time and with a specified number of payments. ◼ With closed-end credit, the borrower is permitted to take loans on a continuous basis and is billed for partial payments periodically. ◼ The finance charge only includes the interest charge, and excludes fees and charges. ◼ Credit information from a credit rating agency can be obtained by anyone on themselves or anyone else online ◼ Bankruptcy should be regarded as a last resort because of the severe consequences

True - Credit does have the potential to encourage overspending and ties up future income. It's easy to spend more than you can afford when you're not immediately parting with cash, and the debt you accumulate will need to be paid off with future earnings.

False - The description given is for closed-end credit, not open-end credit. With closed-end credit, the borrower pays back a one-time loan in a specified period of time and with a specified number of payments.

False - The description given is for open-end credit, not closed-end credit. With open-end credit, the borrower is permitted to take loans on a continuous basis and is billed for partial payments periodically.

False - The finance charge includes not only the interest charge, but also any fees and charges associated with the loan. This could include origination fees, late fees, and more.

False - Credit information from a credit rating agency cannot be obtained by just anyone. While you can check your own credit report, you cannot check someone else's without their permission due to privacy laws.

True - Bankruptcy should indeed be regarded as a last resort because of the severe consequences. It can severely damage your credit score, making it difficult to obtain credit in the future, and can also have emotional and social impacts.