Personal Finance exam 3- Sorenson WSU
What does ATM stand for?
Automatic Teller Machine
which of the following offers a full range of financial services including checking savings lending etc
commercial bank
When Jane researched the brands and prices of refrigerators, she was
comparison shopping
a credit card holder who pays off his balance in full everymonth is known as what
convenience user
A savings account is also known as a demand deposit account
false
Lemon laws have been enacted in 48 of the 50 states for new vehicle purchases.
false
Rental insurance isn't very important since the landlord's insurance on the building includes coverage on all tenants' belongings.
false
a commercial bank is the same thing as a credit union
false
a disadvantage of using credit is the convenience it offers when renting a car...
false
each year check writing is being used more often
false
making transactions using a credit card will immediatley reduce your bank allowance
false
prices at the local convenience store will probably be lower than at the national retail grocery store
false
the FDIC ensures a depositers savings account up to 200 thousand dollars per insured financial institution
false- 250 thousand
a duplex is a house with two or more separate dwellings
false- a BUILDING with two separate living units
a disadvantage of home ownership is the deductability of morgage interest and real estate tax payments
false- advantage
one of the first steps in a new car purchase: negotiation to discuss the trade in vehicle
false- don't mention that first, negotiate new car first before you know what they will pay you for trade in
a credit card is a type of
loan or borrowing
which of the following is an advantage of a car lease
monthly lease payments are normally lower than monthly finance payements
which of the following primarily provides loans for home purchases
mortgage company
which of the follwing is an example of closed ended credit
mortgage loan- specific amount, specific time, when over its done
A credit card holder who pays the full balance during the grace period each month is actually getting a free loan from the credit card company.
true
Credit can indicate stability since lenders consider you a good risk.
true
If you think that interest rates will fall in the future you should buy a longterm CD to lock in your rate now
true
a lease for a car is typically 3-5 years
true
advantages of a lease over a purchase invlude that a buyer can obtain a more expensive vehicle and the payements will be lower
true
angela wanted to rent an apt. so her land lord required her to sign a lease, the lease is a legal document that defines the conditions of her rental agreement
true
close ended credit is used for a specific purpose and involves a specific amount
true
economists recognize consumer credit as a major force in the american economy
true
renters insurance protects the tenant by covering damage or theft to clothing, furniture, and stereo equipment
true
the info gathered from your loan application and the credit bureau are factors of your credit rating
true
the largest fixed expense associated with a new automobile is depreciaton
true
your life style effects your housing decision
true
a time deposit is also known as what
a savings account
What should a home buyer consider when evaluating a house?
all of the above
when you select a financial services provider, which of the following questions should you ask
all of the above
which of the follwing can result from a failure to pay a loan
all of the above
which of the follwing is a valid reason for using credit
all of the above
these products are sold by one chain of stores and are low cost alternatives to famous name products
private label or store brand
which of the following is an advantage of renting
renters have fewer responsibilities for maintenance than home owners
a cash advance is what
requires you to pay interest everyday until you pay it back.... yikes... only should be used in an emergency sittuation
the expected value of a vehicle at the end of a lease is called what
residual value
perhaps the greatest disadvantage of using credit is what
temptation to overspend
which of the following is a disadvantage of renting
tenants can not take tax deductions for morgage interest and property taxes
a legal document that includes information about the due date of monthly rent is called what
the lease- READ YOUR LEASE
the tenant is what-
the leasee
the owner/landloard is known as what
the lessor - will say this at beginning of lease
The amount printed on a label with the suggested retail price that is posted on a vehicle is called the
the sticker price
Trenton wants to buy a house but can provide only a 10% down payment. He probably will be required to have
to pay PMI payments- private morgage insurance payments (if you have less than 20% for a down payment)
which of the following is a disadvantage of a car lease
you have no ownership interest in the vehicle at the end of the lease