FCS 340

When you select a financial services provider, what are major factors to consider?

-Borrow money if needed. -Min. cost of checking & payment services -Bet return on savings

List disadvantages of a car lease

-No ownership -Must meet requirements -Additional cost may occur

Information about a personal bankruptcy may be reported in your credit file for _______years.

10 years

Experts suggest that the debt payments-to-income ratio should be a maximum of __________.

20%

FICO scores generally range from _____________________.

350-850

The Truth in Savings Act requires financial institutions to disclose the _______________________ on savings accounts

Annual Percentage Yield

Name the three credit bureaus.

Experian, TransUnion, Equifax

Which of the financial services listed in Question 3 will likely provide the most expensive access to funds?

Payday loan

What does the term negative equity mean?

Value of car is less than amount owed

What steps can you take if your credit application is denied?

Why denied? Ask to investigate

What are the differences in the following? a. A debit card. b. A credit card. c. An online payment. d. A stored-value card. e. A smart card.

d. prepaid card e. Has chip on card. Can store info on card."Digital Wallet"

The insurance coverage provided by the FDIC for a savings account is ________________________ per depositor.

$250,000

If you lose your debit card and notify your financial institution within two days, how much are you potentially liable for?

$50

What does the term liquidity mean?

Allows w/draw of money in short notices w/o loss of value or fees

The APR is the percentage cost of credit on a(n) ______________ basis.

Annual

What does the term "convenience user" mean as it pertains to credit

Borrow money interest free

What is unit pricing?

Breaking it down

Define impulse shopping

Buyings something spur of the moment/randomly

Personal bankruptcy can be filed under which section(s) of the U.S. bankruptcy code?

Chapter 7 & 13

What type of institution is most likely to provide a full range of financial services, including checking, savings, and lending?

Commercial Bank

39. Define comparison shopping

Compare what you're buying

Earning interest on interest is called

Compound interest

What information does a credit report include?

Credit History

What is the largest fixed expense associated with a new automobile?

Depreciation

How do you calculate the debt-to-equity ratio? What loans are not to be included?

Divide money debt by monthly income. House loan not included

What does the Consumer Credit Counseling Service do?

Helps family get out of debt

If you miss payments on a home equity loan, you can lose your _______________________.

House

The periodic charge for the use of credit is called __________________.

Interest

What would be considered a drawback of a savings account?

Low Interest Rate

What is a stop-payment order? When do you use it?

Not to pay check company had written. When deal goes bad.

Where can you get the least expensive loan?

Parents and/or family member

Ed needed some cash quickly, so he received a short-term loan based on the value of an old ring. Where did he go?

Pawn Shop

Earnings on savings can be measured by the

Rate of return

The minimum monthly payment on a credit card is the _____________amount you can pay and remain a borrower in ___________________________.

Smallest good standing

A certificate of deposit that has different interest levels based on the stock market performance is called a

Stock Index CD

Many think that perhaps the greatest disadvantage of using credit is ______________________.

Temptation to overspend

Explain the following types of warranties: a. Express warranty b. Limited warranty c. Full warranty d. Implied warranty

a. Created by seller. 2 forms: Full & limited warranty b.Covers only certain aspects c. Fix/replace in reasonable time d. Covers intended use

Define the following: a. Invoice price. b. Sticker price. c. Capitalized cost. d. Residual value.

a. Dealers pay b. Suggested retail c. Leased vehicle begin d. How much at end of lease

Explain the following types of endorsements: a. Blank endorsement. b. Restrictive endorsement. c. Special endorsement.

a. Just your signature b. Consist of words deposit only followed by signature c. Transfer check to someone else

16. What are the differences in the following? a. Certified check. b. Cashier's check. c. Money order. d. Personal check. e. Traveler's check.

a. Personal check w/ guaranteed payment b.Guaranteed by bank c.Printed order of payment e.Allows to make payment when away from home

What are the differences in the following? What do each offer? a. A certificate of deposit b. An interest-earning checking account c. A money market account d. A money market fund e. A regular savings account

a. Saving Plan. Require certain amt. & left for on deposit for certain time period b. Acct. thats earns interest c. Saving acct. that requires mim. balance & earns earnings d.Mutual fund that invest in short term debt securities

Explain the following: a. Closed-end credit. b. Open-end credit. c. Revolving check credit. d. A line of credit.

a. Used for specific purpose & specific amount b.Using credit card issued by certain store c. Pre-arranged loan for specific amount d. Money amount that may/may not be borrowed

What type of financial services do to the following provide? a. A credit card company- b. An investment company- c. A life insurance company- d. A mortgage company- e. A payday loan company-

a. short term retain lending b.money-market fund- combination of savings-investing plan c.Financial security w/ various life insurance policies d. Provide loans for home purchase e. Quick money. Hold check until payday

Name the only online source authorized to provide a free credit report each year at your request.

annual credit report .com

If you double the monthly payment for a credit card, the loan will be paid off in ____________ than half time.

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