Banzai Plus Post test study guide
What percentage of a home price is typically required for your down payment if you want to avoid purchasing private mortgage insurance (PMI)?
20 percent
Which of the following shows up on your credit report?
A and C.
Which of these is not identity theft?
A scammer poses as a representative from a charity and asks for money.
What is a debt-to-income ratio?
All of the above.
What is a 401(k)?
An employer sponsored retirement plan where you contribute some of your paycheck.
What does APR stand for?
Annual Percentage Rate
Why should you stay away from borrowing up to your credit limit?
Because it reflects poorly on your credit score.
If you wanted to know what factors contributed to your credit score, how could you find out?
Check your credit report.
You hit a deer while driving. The deer is fine but your car isn't. What kind of insurance must you have in order for the damage to be covered?
Comprehensive.
In order to qualify for a mortgage with good rates, you have to have a high enough .
Credit score.
When buying something with a loan, you can lower the amount you pay each month by paying a higher .
Down payment.
Why would you want to claim an exemption on your pay stub?
It will lower the amount of taxable income you have.
Your is the amount you own in assets minus everything you owe.
Net Worth.
Which of the following deductions are you most likely to see on your pay stub?
Social Security deduction.
You find evidence that your identity has been stolen. Who should you contact first? 911.
The Federal Trade Commission.
Which of the following is true about tax returns?
The number of exemptions you declare will affect if and how much you get on your return.
Which of the following is true about car loan terms?
The shorter the term, the lower the interest rate.
What is the main purpose of the dual accounting method?
To record every transaction twice, reflecting them in accounts and in your budget.
What is the best protection against uninsured drivers?
Uninsured motorist coverage.
What's a "hard inquiry"?
When a financial institution requests information about your credit history for the purpose of extending more credit.
You don't have dependents. Do you still need life insurance?
Yes; it can pay for medical and funeral costs.
Yes; it can pay for medical and funeral costs.
You don't have to pay interest because you won't have a loan.
You bought $230 in clothes and charged it to your credit card. What happens if you don't pay the balance off by the end of the month?
You'll start to accrue interest on your credit card balance.
You got in a car accident and repairs will cost $3,000. After filing your insurance claim, you only paid $500. Why?
Your deductible is $500.
When you apply for a mortgage, the lending institution will likely use your gross income to help decide if you qualify. What is that?
Your income before taxes are taken out.