fin 201 final

research the dealer cost and begin negotiations from that point

George has never bought a new car before. Which of the following techniques should he use to get the best deal?

false

as interest rates increase, more people are able to afford the cost of an average-priced home.

false

federal income tax returns must be filed by April 1 of each year

false

financial documents that you may need quick access to should be kept in a safe deposit box

true

if you are a cosigner for a loan and the debt is not repaid, that fact will appear on your credit report

true

if you are borrowing money to buy a home, the lender will require that homeowners purchase home (property) insurance

you are entitled to a free copy of your credit report

if you are deined credit

file a police report

if you think your identity has been stolen, which of the following actions does the federal trade commission recommend you take immediately?

true

in determining the purchase price of a new car, a trade in vehicle should not be mentioned until the cost of the new car has been settled.

true

inflation is a rise in the general level of prices and it, reduces the buying power of the dollar

true

insurance is protection against possible finacial loss

false

it is illegal to use a credit score to determine the premium to charge an individual

false

making transactions using a credit card will immediately reduce your bank balance

true

many people use credit to live within there meanas

closed-end credit

molly purchased a $1,500 dishwasher from best appliances. she will make 12 equal payments over the next year to pay for it. she is using

true

money management refers to day-to-day financial activities necessary to manage current personal economic resources while working toward long-term financial security

false

most states do not require state income taxes

true

net worth is the amount owed to others

false

opportunity cost refer to money already spent

it applies to vehicles that have been serviced four times to correct the same problem in the first 12,000 miles

what of the following is correct about the lemon law

true

when ted needs more cash than he has available, his choices include liquidating savings and borrowing

paying for a medical emergency paying for everyday living expenses buying a car so a homemaker can return to work borrowing for a college education

which of the following is NOT a valid reason for borrowing?

At the end of the lease, you have no ownership interest in the vehicle

which of the following is a disadvantage of a car lease?

tenants connot take tax deductions for mortage interest and property taxes

which of the following is a disadvantage of renting

escrow

which of the following is an account used to pay property taxes and homeowners insurance?

using credit can increase the amount of money that will be available to spend in the future

which of the following is not correct

FICO

which of the following is not one of the three major credit bureaus?

deed

which of the following is the document that transfers ownership of property from one party to another?

false

Abigail checked out brands and prices of blue jeans at several stores. she was impulse shopping

lessee

The tenant is a

false

an example of a peril is defective wiring

false

a commercial bank is the same thing as a credit union

provides older home owners with tax-free incom ein the form of a loan that is repaid when the home is sold or the home owner dies

a reverse mortgage

false

a trade off of using credit is that it increases the amount of money that will be available to spend in the future

capitalized cost

a vehicle lease has several cost. which of the following is the expected value at the end of the lease

money factor

a vehicle lease has several cost. which of the following is the interest rate used to calculate the monthly cost?

false

adjusted gross income is increased by the itemized or standard deduction

true

advantages of a lease over a purchase included that the buyer can usually obtain a more expensive vehicle and the monthly lease payments are usually lower than monthly financial payments

true

after two or three years of making loan payments on a new car, the balance owed is greater than the value of the car, which is a situation referred to as upside-down

tru

close ended credit is used for a specific purpose and involves a specific amount.

false

consumer credit refers to the use of debit cards for personal needs.

true

current liabilities are the debts you must pay within a short time, usually less than a year.

true

personal financial planning is the process of managing your money to achieve personal economic satisfaction

false

prices at the local convenience store will probably be lower than at the national retail grocery store.

false

private mortgage insurance is usually required if the down payment for a home is less than 30%

false

rental insurance is not important since the landlords insurance on the building includes coverage on all tenants belongings

true

short-term goals are usually achieved within the next year or so

sticker price

the amount printed on a label with the suggested retail price that is posted on a vehicle is called the

false

the average tax rate is the tax paid on the next dollar of taxable income

false

the best option for borrowing money at a low rate is to use payday loan organization

invoice price

the dealers cost is also known as

race nationality sex age

the equal credit opportunity act (ECOA) prohibits a lender form discriminating based on

true

the first step in developing a personal insurance program is to set insurance goals

subletting

the opportunity to have another person take over rent payments and live in the rental unit is called