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Which of the following is/are NOT (an) advantage(s) of debt consolidation? Choose all answers that apply.

Select one or more: a. Having one payment b. Having extended payments c. Having a lower interest rate d. Having higher payments The correct answers are: Having extended payments, Having higher payments

Which of the following factors DO NOT affect your credit score? Choose all that apply.

Select one or more: a. Length of your credit history. b. Cost of living in your area. c. Amount you currently owe lenders. d. Your income. e. The balance on several credit cards. f. Payment history The correct answers are: Cost of living in your area., Your income.

Which of the following people can check your credit score? Select all that apply.

Select one or more: a. Mortgage Lenders b. Credit Card Issuers c. Friends who loan you money d. A Store Clerk The correct answers are: Mortgage Lenders, Credit Card Issuers

In addition to your ability to get a loan (or a good rate on a loan), what other things can a poor credit rating affect? Choose all that apply.

Select one or more: a. Whether a bank will give you higher interest on your savings. b. Whether you'll be hired for a job. c. Insurance Rates d. Your ability to rent an apartment e. How much taxes are removed from your paycheck. The correct answers are: Whether you'll be hired for a job., Insurance Rates, Your ability to rent an apartment

Which of the following are reasons why it is important to pay down principle on a credit card as quickly as possible? Select all answers that apply.

Select one or more: a. You improve your credit score b. Credit cards usually charge between 19% and 24% in interest c. You reduce your principle d. Makes it so you have more available credit to buy more stuff The correct answers are: You improve your credit score, Credit cards usually charge between 19% and 24% in interest, You reduce your principle

Which of the following does a credit score mainly indicate about you? Choose all that apply.

Select one or more: a. Your financial resources to repay the loan. b. Your knowledge of consumer credit. c. How much consumer debt you have. d. Your risk of not repaying the loan. The correct answers are: How much consumer debt you have., Your risk of not repaying the loan.

Your car broke down and you can no longer get to work unless you purchase a new one. The purchase of a new, functioning car is an example of frivolous debt.

Select one: True False The correct answer is 'False'.

Which of the following is considered an ACCEPTABLE credit score?

Select one: a. 619 b. 722 c. 675 d. 580 The correct answer is: 675

The perks of this saving method are that it comes with an interest and is FDIC insured, while the drawbacks include restrictions on withdrawal and the interest rate being dependent on the length of the investment term.

Select one: a. Automatic Savings Accounts b. Online Savings Accounts c. Certificates of Deposit d. Money Market Accounts The correct answer is: Certificates of Deposit

This is an asset that lenders can take possession of if you don't repay the loan.

Select one: a. Collateral b. Security Deposit c. Equity d. Personal Loan The correct answer is: Collateral

To determine your _____________, simply add up all of your monthly bills and then divide the number by your gross monthly income. Remember, your gross monthly income is your monthly pay BEFORE taxes or other deductions.

Select one: a. Debt-to-Income Ratio b. Net Income c. Liquidity d. Credit Score The correct answer is: Debt-to-Income Ratio

Which of the following is a tool a person can use to consolidate their debt?

Select one: a. Home Equity Loan b. Unsecured Personal Loan c. Secured Personal Loan d. Credit Card Advance The correct answer is: Unsecured Personal Loan

Who collects the information that goes into your credit score?

Select one: a. Individual Lenders b. FICO c. Three main credit bureaus: Experian, Equifax, and TransUnion d. The Federal Government The correct answer is: Three main credit bureaus: Experian, Equifax, and TransUnion

The price of debt is called __________.

Select one: a. Interest Rate b. Monthly Payments c. Interest d. Principle The correct answer is: Interest

These are savings certificates that collect interest and are FDIC insured. There are restrictions on withdrawing money early.

Select one: a. Online Savings Account b. Automatic Savings Account c. Money Market d. Certificate of Deposit The correct answer is: Certificate of Deposit

This type of loan can include credit cards, education loans, personal lines of credit, and home improvement loans. They tend to have higher interest rates.

Select one: a. Secured Loan b. Unsecured Loan c. Home Equity Loan d. Personal Loan The correct answer is: Unsecured Loan

Which statement best describes liquidity?

Select one: a. The value of an asset above what you paid for it. b. The value of an asset. c. The usefulness of an asset. d. How easily an asset can be turned into cash. The correct answer is: How easily an asset can be turned into cash.

What is the name of the institution that insures deposits up to $250,000 if a bank should happen to fail?

Select one: a. United States Government b. Federal Deposit Insurance Corporation c. Internal Revenue Service d. Deposits are not insured in case of bank failure. The correct answer is: Federal Deposit Insurance Corporation

This method of paying down debt requires you to make a list of your debts from smallest to largest. You then make payments over the minimum amount on the smallest while making only the minimum payments on all others. Once the smallest is paid off, you continue the trend with the next largest debt, continuing the process until you debt is paid off.

Select one: a. Variable Spending b. Fixed Payment Plan c. Snowball Method d. Gradual Repayment Method The correct answer is: Snowball Method

Which of the following is the BEST reason to pay the interest on your school loans while still in school?

Select one: a. You build equity b. You lower the principle balance c. Your principle increases due to capitalization d. Your assets undergo depreciation The correct answer is: Your principle increases due to capitalization

Please match the term associated with loans to the correct definition.

The correct answer is: An authorized temporary suspension of repayment of student loans, granted under certain circumstances. → Deferment, This accumulates and must be paid on the unpaid principal balance of a loan. → Accrued Interest, The additional of unpaid accrued interest to the principal balance of a loan, which may result in higher monthly payments. → Capitalization, Reduction in the value of an asset with the passage of time, due in particular to wear and tear. → Depreciation, The value of a piece of property after any debts that remain to be paid for it have been subtracted. → Equity, This includes the original amount you borrowed, plus loan fees, less any principal payments. → Principal Interest

Please match the terms related to the types of loan repayment options to the correct definition of each.

You have correctly selected 2. The correct answer is: This plan allows you to pay a fixed monthly payment. → Standard Repayment, This is when you pay a fixed monthly amount over longer period of time, which means you end up paying significantly more towards your loan due to interest. → Extended Repayment, This type of repayment plan starts with lower payments that gradually increase. → Graduated Repayment, This is when your payments are based on your income and amount of debt. Your payments are adjusted annually to reflect any changes in your income. → Income-Contingent Repayment