Alice's study guide

Items bought on credit and paid for over long periods of time cost the same

False

The term is the initial amount of money borrowed in a loan

False

------------- is the entire amount of money you own to lenders

Debt

Items that you want, but are not necessary for your day-to-day spending are called

Discretionary expenditures

Money you pay up front toward the purchase to reduce the loan amount

Down payment

Which of the following is NOT an advantage of using credit?

Ease of spending money you do not have

When you are filling out a check, you have to put a signature. Once you have signed the check, this is known as -------- the checking

Endorsing

Name if the part your budget is necessary or discretionary expenditures

Food- necessary vacation- discretionary clothing- necessary transportation for work- necessary new style of clothing you do not really need- discretionally Entertainment- discretionally Apartment- necessary

The amount of time before interest starts accumulating on charged purchases

Grace period

------------- occurs when someone uses your personal information without permission

Identity theft

Unsecured loans offer all of the following expect?

If the loan is not paid, risk of losing collateral is high

An example of closed-ended credit is a an -------------

Installment loan

_____________ is the amount of money you pay to use someone else's money

Interest

The amount of time your obligated to make payments on a loan is the

Interest rate

Good debt is normally an -------------- with your money in yourself or your husband

Investment

Which of the following can impact your credit score?

Making a late car loan payment

Type of loan used specifically for purchasing a home is a ------------

Mortgage

Which of the following is NOT one of the national credit reporting agencies?

National Credit union administration

What is the first type of expense you should put on your budget?

Necessary Expenses

Items on your budget such as medical care, insurances, rent or mortgage payments, food and clothing are called

Necessary expenses

What you give to obtain something else is called ------------

Opportunity cost

The fee incurred when exceed your credit limit on your credit card is

Over limit fee

What is the best way to reduce a loan payment?

Paying the principal down

Credit is available most readily to

People with a good credit rating

The amount you pay to use credit depends on all of the following EXCEPT

Reason for using credit

Another name for open ended credit is ------------ credit

Revolving

A an ______________ is a loan used for tuition and other colleges expenses

Student Loans

Credit cards that allow consumers to use credit at many places can be obtain

banks, credit unions, and credit card issuers

A consumer should check out his or her credit rating periodically to

be sure the information on file is correct

------------ is the existing cash on hand such as saving accounts or checks

capital

With this type of loan the interest rate remain the same for the life of the time

fixed rate

You can damage a good credit rating by

ignoring bills you cannot pay until the creditors take collection action

As the percentage rate of interest on a credit transaction increases the final

increase

Which of the following is a type of closed-end-credit

installment loan

When we look at government and/or business's budgets, we typically see that they use an

Annual budget

When comparing credit terms, it is important to consider

Annual percentage rate of interest, grace period, method of computing the balance

Person who can use a credit card but not be legally liable for the balance

Authorized user

Is an official summary of financial transaction occurring within a given period for each bank account

Bank statement

Legal process to get out debt when you can no longer make all your pay

Bankruptcy

What is NOT one of the reasons we reconcile our records?

Banks make you submit balanced statements

How long should you keep each type of statement before you shred them or throw them away ?

Bills- 1 months Bank statements- 1 year Tax records- 6 years Receipts- 1 month

A---- show your anticipated income as well are your expenses

Budget

When is the part of your check book called where you put in each of the transactions you have made?

Check register

Bad debt is normally characterized as ----------------- or loses value or time

Consumed quickly

------------- is a report that details how a person has used credit

Credit Report

A three-digit number based on a person's credit report is their

Credit card

When your bank sends you a statement at the end of each month, you want to make sure to check each transaction on your records to the records on the statement

This is called Reconcile

Before using credit you should ask yourself is using credit worth it for this place

True

When you co-sign a loan, you agree to repay the debt if the applicant fails

True

You will not owe any interest if you pay your entire credit card bill by the due date.

True

You will pay more interest on cash advances on your credit card than on card

True

Secured loans offer all of the following expect?

Usually paid in 10-15 years