The Price of Money: Consumers' Understanding of APRs and Contract Interest Rates
Both the contract interest rate and the annual percentage rate indicate the price of a loan. Consumer's understanding of these two measures of the price of closed-end consumer loans was examined using the 1997 University of Michigan Survey of Consumers. Among the mortgage borrowers, at least 40...
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| Veröffentlicht in: | Journal of public policy & marketing 1999-04, Vol.18 (1), p.66-76 |
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| container_title | Journal of public policy & marketing |
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| creator | Lee, Jinkook Hogarth, Jeanne M. |
| description | Both the contract interest rate and the annual percentage rate indicate the price of a loan. Consumer's understanding of these two measures of the price of closed-end consumer loans was examined using the 1997 University of Michigan Survey of Consumers. Among the mortgage borrowers, at least 40% of respondents failed to understand the relationship between these two price measures; education, quantity and quality of information search, and region were found to influence their understanding. The authors draw implications for improving information disclosure in consumer credit markets. |
| doi_str_mv | 10.1177/074391569901800108 |
| format | Article |
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The authors draw implications for improving information disclosure in consumer credit markets.</description><subject>Academic progress rate</subject><subject>Closed end loans</subject><subject>Consumer attitudes</subject><subject>Consumer credit</subject><subject>Consumer loans</subject><subject>Consumer prices</subject><subject>Consumer research</subject><subject>Consumers</subject><subject>Correlation analysis</subject><subject>Costs</subject><subject>Credit risk</subject><subject>Disclosure</subject><subject>Education</subject><subject>Federal Reserve monetary policy</subject><subject>Fees</subject><subject>Interest rates</subject><subject>Knowledge</subject><subject>Loans</subject><subject>Mortgage loans</subject><subject>Prices</subject><subject>Shopping</subject><subject>Statistical analysis</subject><subject>Studies</subject><subject>Sumer</subject><issn>0743-9156</issn><issn>1547-7207</issn><fulltext>true</fulltext><rsrctype>article</rsrctype><creationdate>1999</creationdate><recordtype>article</recordtype><sourceid>7TQ</sourceid><sourceid>BENPR</sourceid><recordid>eNplkEtLAzEUhYMoWKt_QBCCG1ej9-YxmXFXio9CxVLa9ZDJJNpiZ2qSWfTfm6HixtXhwvfdA4eQa4R7RKUeQAleoszLErAAQChOyAilUJlioE7JaACygTgnFyFsITHIixFZrD4tXfiNsbRz9K1r7eGRTrs29Dvrwx1dt03KqNtm034MyGSxDDSdAxS9NpHO2mi9DZEudbThkpw5_RXs1W-Oyfr5aTV9zebvL7PpZJ4ZzmTMGGrWIEfLpDWidlYJlMoYy1AC1EqyGhzkwnHd5LZGnUOtVaEVd0IYB3xMbo9_97777lN9te1636bKiiEiywXPE8SOkPFdCN66au83O-0PFUI1DFf9Hy5JN0dpG2Ln_wyeNgMJJf8BimJoXA</recordid><startdate>19990401</startdate><enddate>19990401</enddate><creator>Lee, Jinkook</creator><creator>Hogarth, Jeanne M.</creator><general>American Marketing Association</general><general>SAGE PUBLICATIONS, INC</general><scope>AAYXX</scope><scope>CITATION</scope><scope>0-V</scope><scope>0U~</scope><scope>1-H</scope><scope>3V.</scope><scope>7TQ</scope><scope>7WY</scope><scope>7WZ</scope><scope>7XB</scope><scope>87Z</scope><scope>8FK</scope><scope>8FL</scope><scope>ABUWG</scope><scope>AFKRA</scope><scope>ALSLI</scope><scope>BENPR</scope><scope>BEZIV</scope><scope>CCPQU</scope><scope>DHY</scope><scope>DON</scope><scope>DPSOV</scope><scope>DWQXO</scope><scope>FRNLG</scope><scope>F~G</scope><scope>K60</scope><scope>K6~</scope><scope>KC-</scope><scope>L.-</scope><scope>L.0</scope><scope>M0C</scope><scope>M2L</scope><scope>PQBIZ</scope><scope>PQBZA</scope><scope>PQEST</scope><scope>PQQKQ</scope><scope>PQUKI</scope><scope>PRINS</scope><scope>PYYUZ</scope><scope>Q9U</scope></search><sort><creationdate>19990401</creationdate><title>The Price of Money: Consumers' Understanding of APRs and Contract Interest Rates</title><author>Lee, Jinkook ; 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Consumer's understanding of these two measures of the price of closed-end consumer loans was examined using the 1997 University of Michigan Survey of Consumers. Among the mortgage borrowers, at least 40% of respondents failed to understand the relationship between these two price measures; education, quantity and quality of information search, and region were found to influence their understanding. The authors draw implications for improving information disclosure in consumer credit markets.</abstract><cop>Chicago</cop><pub>American Marketing Association</pub><doi>10.1177/074391569901800108</doi><tpages>11</tpages></addata></record> |
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| ispartof | Journal of public policy & marketing, 1999-04, Vol.18 (1), p.66-76 |
| issn | 0743-9156 1547-7207 |
| language | eng |
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| source | SAGE Complete A-Z List; Jstor Complete Legacy; PAIS Index; Business Source Complete |
| subjects | Academic progress rate Closed end loans Consumer attitudes Consumer credit Consumer loans Consumer prices Consumer research Consumers Correlation analysis Costs Credit risk Disclosure Education Federal Reserve monetary policy Fees Interest rates Knowledge Loans Mortgage loans Prices Shopping Statistical analysis Studies Sumer |
| title | The Price of Money: Consumers' Understanding of APRs and Contract Interest Rates |
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