personal finance

Which of the following online activities should be avoided?

ONLINE POP-UP ADS OFFERING CREDIT

An account on which the account holder can charge repeatedly up to a maximum limit

REVOVLING CREDIT

You are most likely to finance the purchase of a new car through a

SALES FINANCE COMPANY

Money paid by a tenant that is refundable at the end of a lease is called a(n)

SECURITY DEPOSIT

The ability to receive services, such as care by a doctor, and pay for them later is called

SERVICE CREDIT

Which of the following is NOT a type of living habit?

VEHICLE USED FOR TRANSPORTATION

Property used as security for a loan

collateral

The person who borrows money is known as the

debtor

A fee charged for violating a credit agreement is called a rebate.

false

A subsidized student loan begins to accrue interest from the moment you take the loan.

false

Credit cards are a form of installment credit.

false

It is not important to comparison-shop for credit when buying a new car.

false

Rent-to-own is a fast, conventient, and inexpensive way to start buying furniture, appliances, etc.

false

The amount of time you have to pay your credit card without having to pay interest on your new purchases

grace period

To reduce the costs of using credit, you can

keep the number of credit cards and accounts you have to a minimum

The highest price a property will bring on the open market

market value

A long-term debt agreement used to purchase a house

mortgage

Something of value applied toward the down payment of a new purchase

trade-in

A lender may require a borrower to provide collateral for a loan

true

Before moving in with a roommate, you should be certain that you are compatible and share similar living habits.

true

Buying a house generally involves a large cash down payment of 10 to 20 percent of the total purchase price of the house.

true

Buying luxury items while basic needs are not being met is an example of financial irresponsibility.

true

Credit cards often have variable interest rates because you borrow money at various times.

true

If you pay the full amount owed on your credit card each month, you can avoid paying interest on the outstanding balance.

true

Landlords are required to provide a safe, sanitary, and habitable living site for a tenant.

true

Many merchants encourage their customers to use store credit accounts.

true

Oral contracts are more easily enforceable than written contracts.

true

People who payoff credit balances each month should avoid credit cards with annual fees.

true

Using credit provides increased spending power.

true

When a car loan is upside down, you owe more on your car than it is worth.

true

When using credit, it is important to consider the economy because it can affect interest rates.

true

When you are financially responsible, you are able to meet your own needs by carefully managing your resources.

true

Without credit, many people would have to wait to buy things such as a house or a car.

true

Credit cards typically have a billing cycle of about

20-25 days

When interest for a credit card is calculated based on the amount owed after new charges and payments have been calculated into the balance, the _____ method is used

ADJUSTED BALANCE

A yearly charge to your credit card account for membership

ANNUAL FEE

Unlike the value of most cars, the value of a house generally

APPRECIATES OVERTIME

An organized method for making good buying decisions

BUYING PLAN

A penalty for closing your account prior to a stated period

CANCELLATION FEE

Which of the following types of credit requires that you pay the balance in full each month?

CHARGE CARD

Following graduation, students can consolidate their student loans, which means

COMBINE THEM INTO SINGLE LOAN WITH ONE MONTHLY PAYMENT

The person or company who extends credit to a borrower is called the

CREDITOR

The difference in a property's value and what is owed on it is known as

EQUITY

Paying off an old loan by taking out a new loan with better terms is known as

FINANCING

Credit for a set amount that is to be paid off in a set period of time is called

INSTALLMENT CREDIT

Credit used to finance a single, high-priced item through a series of equal payments made over a set period of time

INSTALLMENT CREDIT

Which of the following types of credit usually have a fixed rate of interest for a set period of time?

INSTALLMENT LOAN

When you receive your credit card statement, you should?

all

Which of the following is a symptom of financial irresponsibility?

all

A disadvantage of using credit is that

buying on credit can tie up future income