AFSB 151 Chapter 6 Exam Questions and Answers with complete solutions | Graded A+

Equifax - - A consumer credit report provide that offers investigative reports based on interviews and confirms unfavorable information with two or more sources - Services are used by insurers, lenders, trade creditors, merchants, etc. In addition to providing traditional consumer credit reports, also provides investigative reports based on interviews and confirms unfavorable information from two or more sources. Trade discounts and allowances - Reductions from the stated purchase price, given by the supplier, for such reasons as purchasing in bulk or paying in a timely manner. Remit on receipt of invoice (ROI) - A credit arrangement that extends credit to the buyer until the buyer is invoiced. Consignment - A credit arrangement in which one party ships merchandise to another party that acts as the agent in selling the goods to others. Consignor - The party who is shipping goods. Consignee - A person or a business holding property owned by someone else for purpose of selling it. Floor Plan Loan - Financing for the purchase of goods for resale to third parties. (Example: a borrower purchases goods for resale to third parties, and a bank finances the purchase price. The bank secures the loan with a lien on the goods and, when each item is sold, the borrower pays the lender the full amount due on that item_a borrower purchases goods for resale to third parties, and a bank finances the purchase price. The bank secures the loan with a lien on the goods and, when each item is sold, the borrower pays the lender the full amount due on that item