Fin 223 Exam 2
True or False. As a homeowner, the federal gov't may allow you to deduct interest expenses and taxes paid on property.
True.
True or False. Credit unions grant loans only to members of the credit union.
True.
True or False. The FDIC insures depositors funds up to $250,000 at member banks under the same depositors name.
True.
True or False. The largest single investment you will undertake in your lifetime will be probably be the purchase of your home.
True.
True or False. When buying a used car it is important to have it checked out by a reputable mechanic.
True.
True or false. A closed-ended automobile lease, is the most popular type of lease.
True.
True or false. Automobiles tend to decrease in value overtime.
True.
True or false. Credit union members are expected to have some common bond?
True.
True or false. Having arranged and fully repaid a small loan, should help improve your credit ratings.
True.
True or false. The purpose of a credit report is to evaluate the kind of risk you pose to a lender.
True.
True or False. A loan to value ratio of 80% would require a buyer to make a 20% down payment.
True. It must always equal 100.
True or False. Collateral is an item of value used to secure the principal value of a loan.
True. collateral =item of value.
True or false. The key to credit worthiness is to keep your debt safety ratio as high as possible.
false. you want to keep it as alow as possible.
True or false. Bank credit card cash advances will begin accruing interest charges immediately.
true.
True or false. One could expect to earn a higher rated interest on a certificate of deposit than a checking account?
true.
True or false: Consumer loans are most commonly used to obtain durable goods.
true.
as a percentage of take home pay, monthly consumer credit payments should not exceed what percentage.
20%
To research used car prices, you can check one of the popular price guides:
All of the above.
An important rule for establishing a savings plan is to:
All of the above. Realistic goal, reinvesting, reimage...
The first step in the auto buying process should be:
Analyze how much you can afford to spend on the car.
What is the most popular use of consumer loans?
Car
What are the 5 Cs of credit and define them.
Character, Capacity, Collateral, Capital, Condition.
To establish creditworthiness, you should probably first do what:
Checking and savings account
Credit unions are
Credit unions are member owned financial owned cooperatives
True or False. Using credit is the ideal way to provide for financial emergencies.
False.
True or false. You can stop payment when you purchase an item with your debit card?
False.
Commercial banks are ensured for the FDIC, What does FDIC stand for?
Federal Deposit Insurance Cooperation.
Sometimes it may be better to use savings rather than borrowing to make a purchase. This would be recommended when:
The cost of borrowing is greater than the interest earned on the savings.