Personal finance Test- chapter 9,10,11
Another word for ownership
Equity
When a mortgage has an interest rate that remains the same for the life of the loan
Fixed
Which of the following is NOt a good reason for taking a personal loan?
David needs to Borrow 1,000 dollars so he can buy season tickets to see the Yankees play
Each of these are high interest options for individuals with very poor credit, EXCEPT
Debt consolidation
One way to take your School loans, credit card debt, and personal loan payment, and combined them into one payment is through
Debt consolidation
The process of combining several small accounts into one larger account
Debt consolidation
The fraction of an items cost that a consumer pays upfront is called the
Down payment
The time during which the credit card company does not charge you interest after having billed you
Grace period
With a mortgage, the ___ is out up as collateral
House
When someone uses your personal information without your permission for personal gain
Identity theft
Which of the following is a true statement about credit cards?
If a person pays her total credit card bill within the grace period, there is no interest charged
Fees charged by a lender on borrowed money
Interest
A long term rental agreement
Lease
Loans taken out to purchase a house are commonly called
Mortgage
A store advertising "30 day same as cash" is advertising which type of credit?
Non installment credit
Additional coverage added to an insurance policy
Policy rider
The major purpose of the Equal Credit Opportunity Act is to
Prohibit creditors from using age,religion, or race to deny credit to a person
Which of the following is an example of pretexting?
Receiving a phone call from someone posing as your bank
Total percentage cost of credit
APR
Personal loans are typically use for large purchases such as
All of the above
One great advantage of using a credit card is that it provides
An easy way to establish a personal credit history
Also known as APR
Annual percentage rate
One way that credit cards encourage people to use their credit is by offering them
Cash back /rewards
The best was to protect against identity theft is to
Check credit bureau personal credit reports regularly
Assets that have been pledged against loan repayment
Collateral
Someone other than the borrower who agrees to sign the loan documents into repay the loan if the original borrower stops making payment
Cosigner
Which of the following is not an advantage of using credit?
Credit can carry extremely high interest rates
Which of the following would be the best option for making small purchases
Credit card
The maximum amount that you can borrow using a credit card
Credit limit
Dustin requested his ______ from TransUnion, which is a___
Credit report;credit bureau
If a person has a credit card with a limit of $2,000,it means that
The credit card company is loaning him up to $2,000 to make purchases
Cody had 500 showing as his principal on the loan. The principal can be defined as
The total amount outstanding on the loan
Which of the following terms is NOt correctly matched with its definition
Unsecured loan: a loan that has an asset pledged as collateral
