Personal Finance

Which of the following can be used as collateral when taking out a personal loan?

Automobile

When you move the unpaid balance on one credit card to another card, this is a:

Balance transfer

You are a 16-year-old employee. Which of the following are you not allowed to do under the federal child labor laws?

Be a delivery driver

This type of bankruptcy is also known as a straight bankruptcy or liquidation. What is it?

Chapter 7

3.C's.of.credit

Character- A trait of creditworthiness that shows a responsible attitude toward paying debts Capacity- The ability to repay a loan from present income Collateral- Assets pledged to pay off a debt if payments are not made according to the contract; also called security

In selecting a baby's type of diapering, which method is the least expensive?

Cloth diapers

Land and buildings that produce income are known as what type of property?

Commercial

reconcile

Comparing and adjusting the checkbook record to balance with the bank statement

credit.report

Confidential report on a consumer's payment habits as reported by their creditors to a consumer credit reporting agency

When speaking about the responsibilities that come with using credit cards, reporting stolen cards promptly is the responsibility of:

Consumers

base.price

Cost of a vehicle with standard equipment; no options or upgrades

CARD.Act

Credit Card Accountability Responsibility and Disclosure Act, signed into law in May 2009, established fair and transparent practices in the credit card market

CRA

Credit Reporting Agency or credit bureau, a for-profit company that collects, stores, and distributes information about a consumer's payment habits

In today's American economy the easiest way to reserve a rental car is by:

Credit card

The Fair Credit Billing Act applies to:

Credit cards

The maximum amount of charges a credit card holder may apply to a credit card account is the:

Credit limit

skimming

Criminals use a device that copies information from a credit or debit card's magnetic strip in order to use the card illegally

You belong to a health club and you've given the club permission to deduct quarterly dues directly from your checking account. This is called:

Direct payment

title

Document that shows legal ownership of a vehicle

Who do labor unions represent?

Employees

flexible.expenses

Expenditures that change each month and can be reduced or eliminated if necessary

fixed.expenses

Expenses that are the same each month

FICO

Fair Isaac and Company, a credit score (number) between 300 and 850 that summarizes your credit risk

Minimum wage may be set by:

Federal law and perhaps state law

Which expenses stay roughly the same each month?

Fixed expenses

Banks are:

For-profit companies

When you have an outstanding balance on your credit card, you often pay interest right away on new purchases, too. In this case you have forfeited your right to a:

Grace period

To be counted as unemployed, a person does not have a job and

Is looking for work

needs

Items necessary to live, such as clothing, food and shelter

wants

Items that are desired, but that are not needed to live

What is true about student loans and your credit history?

Late payments will negatively affect your credit

registration

Legally recording ownership of a vehicle with a government agency for tax and licensing purposes; the registration certificate is carried in the vehicle

secured.credit

Loan for which some form of acceptable collateral, such as a house or automobile, has been pledged

You do not regularly receive canceled checks back from your bank. But, now you need a copy to prove you made a payment. Your bank:

May charge a fee to provide the check

You are applying for a job that will not require you to handle money. Your potential employer:

May use your credit report to gauge how responsible you are

What group of workers does not fall under the jurisdiction of the U.S. Department of Labor's Occupational Safety & Health Administration?

Miners

The term "Negotiable order of withdrawal" refers to what type of checking account:

NOW Account

NHTSA

National Highway Traffic Safety Administration, the federal agency dedicated to achieving the highest standards of excellence in motor vehicle and highway safety

Late payments stay on your credit report:

No more than seven years from the original date of delinquency

avoid.risk

Not engaging in behavior that could cause a financial loss

For each dollar Social Security takes in, about 75% is paid out in:

Old Age and Survivors Insurance

transfer.risk

Paying a fee for another party to assume your financial loss

assume.risk

Paying the full price if a financial loss occurs

The amount of debt, not counting interest, left on a loan is.

Principal

The outstanding balance of a loan, exclusive of interest and other charges, is the:

Principal

factory.warranty

Promise by the vehicle manufacturer to repair or replace defective components for a specific period of time

In the normal course of collecting debts, debt collectors may not:

Publish your name in the local paper

PYF-pay.yourself.first

Putting money into savings each month (or each paycheck) before paying other bills

A limited period of no economic growth and high unemployment is considered a:

Recession

recall

When a safety defect is discovered, the manufacturer is required to remedy the problem at no charge to the owner

When do you pay sales tax?

When you buy a product

Which of the following are benefits of keeping money in an account at an insured bank, thrift or credit union?

Your savings are insured if the institution goes out of business; You receive a monthly statement to help you manage your spending and savings

Estimated market or trade-in worth of a used vehicle as published in a guide by businesses such as Kelley Blue Book, Edmunds or NADA

bookvalue

Your company offers a 401(k) plan. This allows you to:

Save for retirement

Income not spent on current consumption is:

Savings

extendedwarranty

Service contract that provides for no cost or low cost vehicle repair, after the factory or dealer warranty expires

If late payments on your credit report are correct, they can remain in your file for up to how many years?

Seven

Your monthly telephone bill represents what type of credit?

Single payment credit

VIN

Vehicle Identification Number, a unique code used by the automobile industry to identify and track each vehicle manufactured

When speaking of work, compensation refers to:

Wages plus fringe benefits

By law, credit-reporting agencies can keep bankruptcy information on an individual's credit history for how many years?

10 years

You earned 8 percent on a bond. During this time the inflation rate was 3 percent. What was your inflation-adjusted return?

5 percent

You are a 14-year-old worker who has a job after school. How late may you work?

7 p.m.

credit.card

A card that authorizes the delivery of cash, goods or services for future payment with interest, according to a specific repayment schedule

debit.card

A card, issued by a financial institution, that allows consumers to make purchases, withdrawals, or other types of electronic fund transfers directly from checking or savings accounts

installment.credit

A contract for the loan of a specified amount, the contract issued tells the amount of purchase, the total finance charge, and the amount of each payment

revolving.credit

A credit agreement that allows consumers to pay all or part of the outstanding balance on a loan or credit card. As credit is paid off, it becomes available to use again

charge.card

A credit card which requires full payment of the bill each month; no interest is charged

overdraft.protection

A line of credit that allows you to spend more funds than your actual balance

credit.score

A number representing your creditworthiness, based on the factual information in your credit file

credit.history

A record of your credit performance, how you pay back creditors

credit.inquiry

A request by a business, a potential lender, to review your credit history because you have applied for credit with them

What does inflation mean?

A rise in most prices.

credit.score

A statistical system used to rate credit applicants according to various characteristics relevant to creditworthiness

Monroney.sticker

A window sticker, required by law to be placed on every new vehicle, includes information such as MSRP and fuel economy

delinquent

Accounts past due, required payment not made to creditor

service.credit

Agreement to pay after you receive a service; examples include cell phone use or utilities

overdraft

An expenditure (check or debit card) made without sufficient money in an account to cover it

budget

An organized spending and savings plan whereby you match your expected income to your expected outflow

impulse.buy

An unplanned decision to purchase retail merchandise on a whim or at the spur of the moment

invoice.price

Approximate price the dealership pays to the manufacturer for the vehicle

A municipal bond is issued by:

State and local governments

reduce.risk

Taking steps to eliminate the likely possibility of financial loss

Most of the money used to pay for police departments comes from

Taxes paid to the government

credit.worthiness

The ability of a consumer to receive approval for the use of credit from an establishment to which they apply

What is a credit limit?

The amount of credit you are authorized to use.

default

The failure to meet a financial obligation

When an issuer calls its bonds, this means:

The issuer is redeeming the bonds

risk

The probability of financial loss

FTC.Used.Car.Rule

The rule that requires all used car dealers to place a "Buyers Guide" in a conspicuous place in each used vehicle they offer for sale

cash.flow

The total amount of money being transferred into or out of a business, account or an individual's budget

lemon.laws

These state laws protect buyers when vehicles have serious defects

Some cards allow holders to make purchases at numerous businesses but the entire balance must be repaid within 30 days. These are called:

charge cards

Which of the following is the person to whom debts are owed?

creditor

For purposes of filing a tax return, the income you received from babysitting is called:

earned income

IRA

individual retirement account A retirement plan that allows workers to set aside money each year in tax-deferred savings

An asset purchased with the goal of providing additional income from the asset itself is called:

investing

When you purchase a car, MSRP refers to:

manufacturer's suggested retail price

Group health coverage for COBRA participants is generally:

more expensive than health coverage for active employees

When purchasing a car, which of the following is included in the car's base price?

the factory warranty