fin 300

a line of credit is

The maximum dollar amount of credit the lender has made available to a borrower

kelly selected a home and submitted in an offer to the seller

The seller may reject the officer and choose to provide a counteroffer

as a result of being an armed services veteran, Dan should be eligible for an

VA Loan

which of the following appears as a cash outflow on a cash flow statementq

Variable expenses

at the end of the year, Xavier received a form from his employer that reported annual earnings and the amounts deducted for taxes. that form is called a

W-2

Cathy needs a full range of financial services, including checking, savings, and lending. to which of the following should she go?

a Commercial bank

Quentin wants his retail purchases to be deducted directly from his checking account. which of the following tools should he use

a debit card

which of the following will likely provide the most expensive loans

a payday loan company

the savings component of financial planning focuses on long-term security and includes:

a regular savings plan for emergencies

a drawback of a regular savings account is

a relatively low rate of return

the primary benefit of a home equity loan is

the deductibility of the loan interest on federal taxes

Brandon lost his debit card. When he realized it was gone, his account had $238 in unauthorized charges. Since he was embarrassed about his loss, he didn't contact his financial institution for 70 days. What is the most that he is liable for?

$238

brenda lost her debit card. when she realized it was gone, her account had $173 in unauthorized charges. she notified her financial institution within 2 days. how much is she potentially liable for

$50

if you have probably reached the upper limit of debt obligations, your debt -to - equity ratio is about

1

at the end of the year, walter received a form that showed his payments from independent contracting. that form is called a

1099

if you are denied credit, bureau and ask for a copy for your credit report. the bureau cannot charge a fee for this service as long as you ask to see your files within of notification that your credit application has been denied

60 days

the tax designed to ensure that those who receive tax breaks also pay their fair share of taxes is called the

AMT

Ursula wants to have an interest rate that can increase or decrease during life of her loan. she should look for an

ARM

the question "what are your assets and net worth" relates to

Capital

The question "will you repay the loan" relates to

Character

frank and diane want to buy a house. which of the following do they need before they purchase a house

Down payment

opal is a real estate agent who represents the buyer as well as the seller. in some states, the buyers are required to sign a disclosure acknowledging that they are aware that opal is working as

Dual agent

using the services of financial institutions or financial specialists( such as insurance agents, certified financial planners or investments advisers) to seek relevant information is done in which step in the financial planning process?

Evaluate your alternatives

Quinn applied for a loan. He provided information about his finances and the home he plans to purchase. results of the affordability mortgage calculation included all of the following except expected maintenance costs the home purchase price he can afford the monthly mortgage payment he can afford the mortgage amount he can afford none of these are choice correct

Expected maintenance costs

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

FICO

An IRS agent visited Henry's home to verify some information on his tax return. this visit was called an

Field audit

the number of personal financial records a household has to organize may seem overwhelming. how long should you keep documents relating to the purchase and sale of estate?

Indefinitely

marcus bought a certificate of deposit whose interest rate is based on the stock market. somtimes, his earnings are higher than other similar cds, and at other times , his earnings are lower. he purchased a

Indexed CD

which of the following usually offers money mutual market funds? Credit card company Investment company life insurance company finance company payday loan company

Investment comany

while evaluating alternatives, comparison shopping will be beneficial for buying

Items that can be researched easily with advertisements

When angela wanted to provided financial security for her dependents, she considered purchasing a product that would provided income replacement in the event of her untimely death and also provide savings/investment component while she is alive. which company would she most likely do business with

Life insurance company

Karen bought a mixer. she received a warranty that covers certain aspects of the product. if the product fails, she may be required to pay part of the costs for shipping or repairs. which of the following warranties does she have?

Limited warranty

when sam applied for a loan, he was assured that his rate would not change if he closed within 30 to 90 days. sam had an _____ on the interest rate

Lock

the goal of investing $50 per month for the next 12 years for your nephew's college fund is an______ goal

Long term

all of the following are fixed operating costs for a vehicle except

Maintenance and repairs

when creating a personal balance sheet, which of the following is a current liability

Medical bill

if i can invest a dollar today and earn interest on it, then it should be worth ______ in the future

More

The lowest payment does not necessarily mean the best credit plan. if your car loan is a long period of time. you may end up owing more than the car is worth. which is called

Negative equity

A Vehicle lease has several costs. which of the following is the expected value at the end of the lease

Residual value

a budget deficit would result when a person's or family's

actual spending exceeds planned spending

gross income less adjustments to income equals

adjusted gross income

the Equal Credit Opportunity Act (ECOA) prohibits a lender from discriminations based on race Nationality age sex

all of the above

the main purposes of personal financial statements are to report your current financial position measure your progress toward financial goals maintain information about your financial activities provide data for preparing tax forms or applying for credit

all of the above

while evaluating alternatives, all of the following are appropriate questions you could ask before making a major purchase except is it possible to delay to purchase or to do without the item should i pay for the item with cash or buy it on credit which brands should i consider how od the price, quality, and service compare at different stores

all of these are questions that should be asked

which of the following is not a valid credit application question

all of these are valid credit applications questions

Ricky has a conventional mortgage. he can monitor the reduction of his loan balance through his payments by using ______information

amortization

The tax based on the total tax due divided by taxable income is called the

average tax rate

a loan officer is examining whether or not to offer you a loan today. specifically, she is examining your income and debts. which of the five C's of credit is the loan officer reviewing

capacity

Nora bought a used car and was told that she needed personal check with guaranteed payment. she obtained a

certified check

the use of property or savings to secure a loan relates to

collateral

when jane researched the brands and prices of refrigerators, she was

comparison shopping

madeline wants to purchase a larger house, however, she has not yet sold her current home. she may want to include a(n) _______ in her office

contingency clause

which of the following ratios indicates that liquid assets are available to pay current liabilities for a household

current ratio

which of the following ratios shows the relationship between debt and net worth

debt ratio

which of the following will increase the net worth of a household

decrease amount owed on credit cards

the largest fixed expense associated with a new automobile is

depreciation

a credit report includes

detailed credit information

fees, tips, and bonuses are forms of

earned income

pauline just submitted an offer on her dream home. as evidence of good faith, she also included an

earnest money

which of the following is an example of a financial opportunity costs

forgoing wages to attend shcool

steve bought a laptop that was defective. this laptop will be fixed or replaced by the manufacturer as long as he returns it in a reasonable amount of time. what type of warranty does he have his laptop

full warranty

an investor should expect to receive a risk premium for

higher uncertainty about getting his/her money back

Lonnie wanted to sell his house but didn't know what price to ask. he should consider all of the following except

his original costs

which of the following is a cash flow payment for rent payment for groceries payment for loan income for employment payment for medical expenses

income from employment

an advantage of effective personal financial planning is

increased control of financial affairs

the amount levied on the value of property bequeathed by a deceased person is

inheritance tax

which is not true about fair credit reporting act

it gives borrowers the right to know why they are denied credit

which of the following is an advantage of a care lease

monthly lease payments are usually lower than monthly financing payments

when calculating the debit to equity ratio the following is not included

mortgage balance

private mortgage insurance

must be terminated automatically when the homeowner's equity reaches 22% of the property value at the time the mortgage was executed

Veronica has had a variable-rate mortgage for several years. unfortunately, the monthly mortgage payments have not covered her interest owed. as a result, her home equity is decreasing because of

negative amortization

Gross (or total) income includes

passive income

which of the following is not a valid reason for borrowing

paying for everyday living expenses

how long should you keep your most current will

permanently

an advantage of investing in a 401k plan is the

possibility of receiving an employer math on your contributions

Wanda bought a certificate of deposit and automatically received a free bike. She purchased a

promotional CD

Credit files can include all of the following except

race nationality

a cash advance

requires you to pay interest everyday until you repay the cash advance

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

research the dealer cost and begin negotiations from that point

when creating a personal balance sheet, which of the following is an investment asset

retirement account such as a 401k

The step in the personal financial planning process that follows immediately after the step: "Create and implement your financial action plan" is

review and revise the financial plan

the number of personal financial records a household has to organize may seem overwhelming. how long should you keep copies of your tax return

seven years

if you have a problem whose remedy will be between $1500 and $3000, the appropriate tool to use would be a

small claims court

Taxes on earnings that fund old age, survivor, and disability insurance benefits are called

social security taxes

which of the following is not a main purpose of a budget

spend your money without financial worry

which of the following is not an action that can reduce your taxes

taking out a consumer loan

which of the following is a disadvantage of renting

tenants cannot take tax deductions for mortgage interest and property taxes

the consumer price index measures

the average changes in prices of a fixed basket of goods and services of urban consumers

the minimum monthly payment on a credit card is

the smallest amount you can pay and remain a borrower in good standing

which of the following is not correct regarding real estate agents

they require that you conduct your own showings

An example of a personal opportunity cost would be

time comparing several brands of personal computers

Elaine purchased her living unit in a building with 5 separate units. she purchased a

townhouse

to calculate the time value of money, we need to consider all of the following except

type of investment

a standard measurement used to compare the prices of packages of different sizes is

unit pricings

which of the following is the best scoring technique used in credit applications for consumers with limited credit histories

vantageScore

if a loan is being paid in installments instead of one lump sum at the end of the loan period, the actual rate of interest

will be higher than the stated rate

you may be required to make estimated tax payments if

you are an independent contractor

if you are denied credit

you are entitled to a free copy of your credit report

If you think a bill is wrong or you want more information about the bill, then you and your creditor should follow all of the steps here except A. You should notify your creditor in writing. B. You should pay the portion of the bill that is not in question. C. Your creditor must acknowledge your letter within 30 days. D. Your creditor must adjust your account or tell you why the bill is correct within two billing cycles. E. Your creditor must reimburse you for your time spent researching the error.

your creditor must reimburse you for your time spent researching the error