Collegiate Personal Finance F151 (Ch 1, 2, 4, 5, 6,& 7)- IUS Spring 2020
The Bureau of Consumer Protection protects consumers by: A. suing on behalf of consumers any company or individuals that break consumer laws or regulations. B. educating consumers about their rights and businesses aout their responsibilities. C. collecting consumer complaints, investigating consumer complaints, and sharing information with law enforcement agencies. D. developing and overseeing regulations aimed at maintaining a fair marketplace. E. All the answers are correct.
All fo the answers
Maya had an unresolved conflict with a local business. They finally agreed to ....... which means the decision was binding on both parties.
Arbitration involves a binding decision to settle a dispute.
Kaneesha can no longer pay her debts, because her budget is simply too tight. The judge determined she would go through a five-year repayment program by paying the courts directly and they would proportionally pay her creditors. The judge determined she would go through
Chapter 13 bankruptcy
Jacob can no longer pay his debts due to his recent job loss. The judge determined he would have to liquidate all his non-exempt assets and pay that amount to his creditors, but then they could no longer collect any more from him. The judge determined he would go through:
Chapter 7 bankruptcy
Bryan wants to purchase a car, but due to several missed payments in the past, identified on his credit report, his loan is denied. The dealership says they will loan him the money, but he will have to bring in a much larger down payment. The dealership, using the five Cs of credit, denied his loan due to his _________ but will still give him the loan if he improves his ______.
Character; capital
Neil is an aggressive loan officer. He really wants to make as many loans as possible to earn his commission. No matter what anyone's history with payments has been, or their income level, he approves auto loans at nearly 100% since the car itself has value and can be repossessed to pay off the loan. Neil is basing his decisions on auto loans almost entirely on:
Collateral
Bob's friends invited him to a concert this weekend, but he doesn't have any cash to pay for the tickets. Bob decides to use his credit card and purchase a ticket anyway. In other words, Bob is using ______ to buy the tickets.
Credit
Zena opened up her first credit card account about three months ago. Her friends wanted her to join them on a last-minute trip to Vegas. She didn't have enough cash, so she charged her flight and hotel to her credit card since she knew she could pay it off over the next six months. Which credit rule did Zena break?
Credit cards are not to be used to supplement your income.
Zachary really wanted to go on spring break with his friends. However, his rent, car payment, monthly student loan payment, and cellphone bill took up so much of his income that he did not have enough left over. In other words, his ............. too high.
Fixed expenses are
Fillipe has a much lower credit score than Jane. If they both apply for the same loan what is likely tohappen?
Jane and Fillipe will be approved, but Fillipe will pay a higher interest rate.
Benjamin recently used small claims court to settle a dispute. Most likely, his dispute was: A. his divorce. B. his name change. C. an injunction. D. a bankruptcy. E. None of these disputes can be settled in small claims court.
Non of these disputes can be settled in small claims court.
We must retrain our brains because they have been trained to:
Spend
Monica received a letter in the mail stating that a Nigerian prince was trying to transfer $100,000 into her account because he needed to convert his money to dollars. If she complied, she would be allowed to keep 10% of the money. Being suspicious, Monica correctly referred this letter to the:
U.S. Postal Inspection Service. The U.S. Postal Inspection Service defends against illegal, fraudulent, and dangerous use of the postal service such as this scenario. Next Question
Xinyu was shopping for the granola bars that she eats for a snack every day. She wants to buy 50 bars to get her through the next several weeks. The store sold them individually for 90 cents each, a box of 10 for $9.99, and a box of 25 on sale for $27.00. Making a wise shopping decision, she decided to:
buy 50 of them individually, since that is the least expensive option. 50 granola bars times × $0.90 = $45.00. This is the least expensive option.
Sharice was concerned that she would not be able to afford the payments on her new credit card. Even though she has not used it for any purchases, they issued her a credit line of $10,000--and now she is really upset anddoesn't know what to do.Sharice's concern is probably because she is confusing the conceptsof:
credit and debit
Victor was denied his application for a credit card. The reason is that his ____________ was only 620.
credit score
Jenna has always been told to avoid debt for any reason whatsoever and always saw it only as something bad. She was surprised when her professor correctly explained that:
debt is important to the economy.
Rebecca found a great job after graduation that paid $60,000 per year. She went ahead and purchased a new car, rented an expensive apartment, and furnished the apartment using her credit card. A few months after she was hired, the company had budget cuts and had to fire everyone who was hired in the past year. Since Rebecca could not find another job that paid as much, she was unable to make her payments anymore. She learned that:
debt is risky
Paramveer borrowed a lot of money to attend college. His monthly student loan payments are $800. He cannot afford the rent on the apartment he really wants because he is $200 short each month. Paramveer learned the hard way that:
debt reduces your options
Troy was looking at his most recent credit card statement and was surprised when he realized............ not listed on the statement.
his social security number was
Alexi just purchased tickets to the basketball game from her friend, Jorve. She picked up the tickets this morning, but she is.............. because she is not going to pay him until she gets paid next week
in debt
Enrique wanted to start his own band. He purchased all his sound equipment and instruments on his credit card with 12 months financing at only 3%. After his first year, his monthly payments suddenly jumped way up and he was unable to keep up with the minimum monthly payments and had to sell his equipment. The damage was done because he had:
increasing finance charges.
Brianna went to www.annualcreditreport.com to get her free credit score. When she logged in she:
received three free credit reports, but no free credit score.
Kevin was asking his friend Regina, who is a loan officer, about the entire loan process. Regina explained a lot of details that confused Kevin. She finally summarized the whole process and said the bank wants to determine what type of _______ the borrower will present.
risk
Assuming your credit report is accurate, all the following are in your credit report except your:
salary
Kris and Bobbi just bought their first house together in an upscale neighborhood. They were jealous of the swimming pools, nice SUVs and fancy vacations of their neighbors. Because they did not want to seem out of place, they borrowed money and used their credit cards to purchase the same things as their neighbors. Bobbi's parents told her she was spending so much because:
she wanted to keep up with the Joneses'
Allyn just borrowed money to purchase a car to drive to work each day. The convenience of the car will allow her to stay later at work and impress her boss. Her financial adviser says the car loan is still bad debt because:
the car depreciates in value.
Barry grew up in a home where his parents made a good income. They had a swimming pool, a home mediaroom, and a 3,000-square-foot house. When Barry first graduated, he rented a large apartment that had many of the same amenities as his parents' house, which caused him to end up in debt. This is most likely due to his
unrealistic expectations
Lilly used to be able to save over $500 per month. Lately, she can't seem to find any money in her budget to save anymore. Her finance professor pointed out that she is spending more on cosmetics, dining out, and morning coffees than ever before. Her professor was trying to point out that she can save more if she quickly adjusts her
variable expenses
Taylor was speaking with a mortgage broker. She said the interest rate would be 6.00% per year, but the__________ was 6.42% because of the fees.
APR
Chad is trying to improve his credit score. Which action would most likely help?
Reduce the amount of debt he has.
Almost all lenders look at anyone applying for a loan based on the ___________ presented to the lender.
Risk
Personal financial success is not about how much you make but about how much you:
Spend
How you choose to manage your career is one of the ___________________ you will make.
biggest financial decisions
For maximum protection with online purchases, it is best for people to use:
their credit card
Most lending institutions use a process called ________ when deciding whether to lend you money.
underwriting
Marcy was scheduled for a 9:00 AM interview and she knew the commute would take 25 minutes. She left her house precisely at 8:30 AM, but due to a local protest march traffic was slower than usual and she did not arrive until 9:15 AM. She still met with the employer and completed her interview but the employer did not seem happy with her and she did not get the job. She could have had a much better interview in this instance if she had
arrived early
James wants to make sure he doesn't fall for so-called tricks of the credit card industry. That means he looks outfor: A. a decreasing minimum payment. B. enticements to use his credit card for everything. C. hidden fees. D. an increasing credit limit. E.All the answers are correct.
All the answers are correct
Elijah is trying to decide on a career. Ultimately, he knows that his family is all on the East Coast and the most important thing for him is that he stays near his family no matter what career he chooses. Elijah has identified which career 'W' as the most important?
Where do you want to work?
Once you establish a reputation as ___________, that reputation can carry you far beyond the little bit of effort it takes to prove yourself.
a hard worker
Nancy put gas in her car earlier in the day at the local gas station using her debit card. She had $90 in her checking account and only put $30 of gas in her car. When she went to purchase an item that cost just $25, her card was declined. This is most likely because:
a merchant put a block on her card.
Kai wants to save some money over the next 12 months for vacation. Unfortunately, he chose the wrong place to save his money. Where did he likely put the money that made it a wrong choice?
Stock mutual fund
John wants to buy cheese, which lasts for 20 days before going bad. The 7-slice pack is $2.00, the 12-slice pack is $3.50 and the 25-slice pack is $5.00. To spend the least amount of money, which should John purchase assuming he eats one slice per day?
The 25-slice pack
Joseph grew up in a wealthy home, went to a well-known university and has a large income. Assuming he is like most people in his situation, he is more likely to __________ than is a financially disadvantaged single parent working two minimum-wage jobs to support a family.
avoid playing the lottery and be focused on at least one goal
Samantha just started her new job. She met a co-worker who has been there for several years and was higher up in the company. The co-worker offered to explain to Samantha how the company worked, what skills she needed to move up in the company and the types of accomplishments that the company rewarded. Basically, the co-worker was:
being a mentor
Most people need to __________ at some time to accomplish their financial goals and to better their lives.
borrow
Creditors and collection agencies are not allowed to make outrageous threats, call neighbors or family, or harass by telephone or in-person if the _________ stating such.
borrower sends a certified letter.
Peter wrote a check to cover his rent payment this month for $650. Unfortunately, he only had $500 in his account at the time the landlord tried to cash his check. Since his account had less than the check amount, his check:
bounced
Stacey borrowed $1,000 to pay for her dog's vet bill last year. She was told she did not have to make any payments, but the whole amount had to be paid off in 12 months. When she went to pay the $1,000 she was surprised to find that the amount she owed was $1,100. Stacey didn't realize she had to pay
interest
José is working on his social media profile page and attending some open events in his local community with several business leaders. José is________________ to improve his job prospects.
networking
Payday loans are some of the most __________ and _________ loans around.
risky; expensive
You want to make sure to set realistic, ___________ goals, such as paying off a small credit card, as opposed to purchasing a home with cash in the next year.
Achievable
Kevin asks his professor where he should keep his money. After Kevin explains that the purpose of this money is to be able to spend it for his regularbills, his professor recommends a local bank or credit union. This is because Kevin's money in this instance is about: A. short-term goals. B. keeping the money safe. C. access to cash. D. preserving the money. E. All the answers are correct.
All the answers are correct
Your career is a lifetime journey of making good use of your: A. time in college. B. skills. C. knowledge. D. experience. E. All the answers are correct.
All the answers are correct.
Veronica just received her financial aid disbursement amount of $2 comma 0002,000. She subtracted out her one-time expenses such as books. What should she do next?
Divide the remaining amount by the number of months she will need the money.
Jade has had a credit history for nearly ten years. In that time, she has opened five credit cards, taken out no loans, and not opened a new card recently. She has also never been late or missed any payments, and only owes about 20% of her available balance. Her score is lower than she expected. What element of her credit score is likely preventing it from being higher?
Types of credit
Couples are likely to overspend when they do not __________ their goals.
communicate
Richard just bought a new 60-inch TV. The store does not require any payments for two full years and the interest is 0%. This means Richard:
has debt
Lisa has developed her goals and is managing her budget. The next step she should take in the financial planning process is:
monitor and review
Nicola purchased a new curling iron. After three weeks, she started having problems with it. First, itwouldn't warm up, then it would get too hot and singed her hair! When she looked up the model number online, she found that several others had been complaining of the same issue with this product over the past year. This could have been prevented if she had:
researched the product.
Henry wants to improve his credit score because he hopes to buy a home soon. Why is it so important to him to raise his score before he applies for the mortgage? A. His interest rate will be lower. B. He wants to qualify for the loan. C. His monthly payments will be lower. D. He wants to be able to put less money down for the down payment. E. All the answers are correct
All the answers are correct.
Cormac purchased furniture from a local business with no payments for 12 months at 0% interest. Six months later, he was told he owed the original amount, plus interest and late fees. When he finally reported the company, he correctly reported them to the:
Consumer Financial Protection Bureau
When saving your money, you want it in an account that is _______ ,which means it is easy to get your cash or easy to convert into cash without affecting value.
Liquid
Tania was happy that the Credit CARD Act of 2009 was protecting her as a consumer. She didn't realize, however, that the Act did not prevent the credit card company from:
charging high interest rates
Devin and Pat are a married couple. They just received a tax refund of $500. Devin was excited and bought Pat a$400 gift. Pat was also excited about the money and bought the $300 curtains they had been wanting for months.Now, they've ended up overspending by $200 and going into debt because they did not:
communicate their goals
Logan makes $1,500 per month. He has $500 per month available after he pays his expenses. When he decided to buy his new TV for $750, he felt it was a reasonable price since it is only 50% of his income. Instead, he should have:
computed the cost as a percentage of discretionary income.
Nathaniel paid a local contractor to clean out his rain spouting. After the contractor left, he noticed a section of the spouting that the contractor missed. His first course of action should be to:
contact the contractor.
Caleb had a good part-time job that paid $2,000 per month and over $1,800 in expenses every month. That means he only had $200 available in ________ income.
discretionary
Camille was contacted by a collections agency and they proved that the debt they were trying to collect was legitimate. Now, she has to _______ what is actually owed to the lender and all the penalties and fees.
distinguish between
Dominic just got dumped by his girlfriend. He didn't know what to do so he bought himself a new TV, video gameconsole, and new stereo for his car. Some people call this "retail therapy" but it can also be identified as:
emotional difficulties
Angelica is planning a themed birthday party for her daughter and plans to buy all the supplies online. For maximum protection with her online purchases, she should use
her credit card
Wendy was reviewing her credit report. Since the report was complete and accurate, she could find all the following information except:
her current income
Justin owed $5,000 on one credit card, $7,000 on a second credit card, and $8,000 on his car. After consolidating his debt into a single $20,000 loan, he explained to his girlfriend Beth how he had just paid off his debt. Beth didn't really know how to respond because:
he didn't really pay off any of his debt.
Kyle was comparing two of his credit reports. He noticed that the credit card he has from his local credit union was on his Experian but not his TransUnion report. Most likely this is because:
his credit union only reports to Experian
Gordon is the type of person who likes to have checklists and cross things off as he goes. He likes to start with easy tasks to get them out of the way. The best approach for him to pay off debt is likelyto:
pay off the smallest debt first.
Tobias was short on cash so he took out a _________ that had to be paid back in two weeks. As it turns out, his fees and interest combined totaled over 400% annual interest!
payday loan
Cornelius is having some difficulties paying his debts and he is a few months behind. His creditors are starting to harass him by calling his neighbors, calling him at work, and more. To legally get them to stop, he should:
send a certified letter demanding they stop.
Kristyn just purchased a new laptop for $1,200. The store wanted to sell her a(n) _______ for threeyears' coverage of repair or replacement at $400. She decided it was too expensive.
service contract
Because Lucy is trying to recover just $5,000 from her landlord, who she feels ripped her off, in most jurisdictions, she can sue in __________________, which will keep her fees low and can likely be quick.
small claims court
Businesses buy things for one reason only:
to make a profit
When Katie applied for a loan at the bank, the loan officer said the final decision would not be made until after they completed their _____________. He said it was important to evaluate her riskiness and then they could determine the amount they would lend and at what rate.
underwriting
__________ is one of the five C's of credit and is the willingness to pay bills on time.
Character
Vladimir placed $5,000 in a money market account at the local branch of a large bank. Unfortunately, the bank went bankrupt and shut down. He was still able to get his $5,000 because the bank was:
FDIC-insurred
By obligating future income, debt:
Is risky and reduces our available choices
Eventually, you will reach your last semester in college. Just like any product, to let others know about you and know what a great asset you will be to their business you will have to __________ yourself.
Market
When it comes to improving your personal finances, most people think that __________ is theanswer, but it is not.
More money
John is trying to borrow money for a house. His credit union said the application process is going to include looking at his creditworthiness to determine if the credit union will loan him money and at what interest rate. The credit union will base their decision on John's: A. religion. B. ethnicity. C. budget. D. race. E. None of the answers are correct.
None of the answers are correct
Nate is nearing the end of his last semester and was fortunate enough to get called in for an interview. Nate felt he had a great interview and learned a lot about the company. For example, he didn't realize that the company was not just local, but had offices in 25 different states and in 3 other countries. He learned so much at the interview that he didn't even have any questions at the end. When he found out he didn't get the job, it was probably because he did not:
Research the company
Shania is in her early 20s and just started her first real full-time job with benefits. She is engaged to be married and would like to buy a home within the next three years. Shania is in the...........stage of her financial life cycle
Wealth Protection
The financial life cycle stages as most people go through them, in order from youngest to oldest, are:
Wealth protection; Wealth accumulation; Wealth distribution.
Priscilla started her new job about 6 months ago. The project she is working on is slowing down so she decided to ask around in other departments to see if anyone needed her help. She ended up collaborating on two other projects to use up her free time. Priscilla is not only showing initiative at work but also being
a team player
Rory really wants to become a go-to person in his office. As such, he will most likely avoid:
asking his boss if he should use one of his vacation days to not waste company time since his project is slow.
A good ________________ lets you evaluate where you are in your college career and identify opportunities that will give you the skills and experiences a potential employer finds attractive.
college career plan
Hannah is trying to improve herself to boost her career. She has volunteered as part of her organization's fundraiser to be the one to present a unique fund raising idea to the local community and to announce each of the donors at the main event. On which element of self-improvement is she mostfocused?
communication
Ahmet is working on his budget process. He has already created an estimated one-month budget and tracked an actual month of spending. His next step should be to:
compare the two budgets
Sherice prefers to use cash most of the time, but her employer direct-deposits her paycheck into her bank account every two weeks. When choosing her bank or credit union, Sherice might want to prioritize finding one that:
has convenient access to ATMs
Parvé has set a goal to accumulate $10,000 by investing a small amount of his paycheck each month and earning a reasonable amount of interest. He wants to use this money to buy a house. This is not a S.M.A.R.T. goalbecause:
he did not set a time frame.
Caleb has some money set aside. He has not contributed to his account for a few months, but when he stopped contributing he had $10,000 in the account. A few months later, his account balance is only $7,800 and he has not spent any of the money. This is most likely because his money is
invested in the stock market
Isaiah was looking for internship opportunities. He found one that was available during the fall semester in the career field of his choice, but it did not pay and it was not at the company he wanted to work for, so he turned down the offer. Isaiah:
made the wrong choice-- it was in his field
Francine is trying to save money for a car purchase within the next six months. She should be most concernedwith: A. low risk. B. convenience. C. preservation. D. safety. E. All the answers are correct.
All of the answers are correct.
Ophilia really wants to be proactive and manage her career. She realizes it is called a career ladder and not a career elevator. To learn more about managing her career, she should: A. seek out experts on the topic. B. attend seminars on the topic. C. visit websites on the topic. D. read books on the topic. E. All the answers are correct.
All the answers are correct.
Wilma wants to make sure she does not pay any fees to her bank if possible. To avoid fees she can: A. avoid ATM fees. B. choose basic checking. C. maintain a high average daily balance. D. choose direct deposit. E. All the answers are correct.
All the answers are correct.
Louie keeps running out of money before his rent is due. He is not doing very well at controlling his spending. A good tool he should be using is a:
Budget
The financial planning process steps, in the correct order, are:
Develop your goals; Manage your budget; Monitor and review; Repeat.
Which of the following is NOT one of the psychological reasons people usually end up in debt?
Low income
According to the authors, to improve your chance of success with your financial plan you should follow the acronym:
S.P.E.N.D.
Viola just completed her net worth worksheet. Her total net worth is a positive number. What does this mean forViola?
The total worth of her assets exceeds the total amount of her debts.
Quincy is 62 years old and plans to retire later this year. He is concerned about his grown children and his grandchildren and wants to make sure he can provide as much support tot hem as possible, especially after he is gone. He is in the _______ stage of his financial life cycle.
Wealth Distribution
Gracie has determined that she would ultimately like to be a vice president of a bank, even though she knows she will not start out at that level. In fact, it may take her several years to reach that goal-- and she may even have to get amaster's degree in the meantime. Which of the career'W's is she focusedon?
Where do you see yourself in five years?
Debt allows an economy to appear very large but debt also creates _________________ in an economy.
more risk
Hector only had $50 in his checking account, but when he tried to purchase a $75 item with his debit, the sale went through. This is because he has_____________ through his bank or credit union.
overdraft protection
Bershir manages his budget well and even makes a list before he goes shopping. However, it seems that every time he goes shopping he sees items not on his list that he really wants and spends way too much money on them and then ends up running out of money before his next paycheck. His biggest issue seems to be
implies buying
Tyrone just graduated and started a new full-time job. Now that he has some income, his first goal should be to:
start an emergency fund.
Even people that are responsible with their money and never spend more than they make have trouble covering an emergency if:
the expense is not planned for in their budget.
Doug wants to purchase something from the store, but would also like to get cash back. To do this he will need to:
use his debit card, press "Debit", and enter his PIN.
All the following are ways to improve your credit score except: A. pay your bills on time. B. ask to have late payments erased if you are now caught up. C. avoid closing unused accounts. D. pay down your debt. E. All the items are ways to improve your credit score.
All of items are ways to improve your credit score.
Elle has made a few money mistakes over the past few semesters by missing some credit card payments and falling behind by three or four months on her car payment. She is concerned because her credit score is probably low which could affect her ability to: A. get a new credit card. B. get a job. C. get car insurance. D. get an apartment. E. All of the answers are correct.
All of the answers are correct
Ira has completed his monthly budget and notes that the difference between his monthly income and his monthly expenses is a shortage of (negative) $100. This means that Ira did what? A. Spent $100 more for the month than what he made in income. B.Must find another source of funds, such as from his savings account, to make up for the shortage. C.Must find another source of funds, such as finding an additional part-time job, to make up for the shortage. D.Must find another source of funds, such as using a credit card, to make up for the shortage. E.All the answers are correct.
All of the answers are correct
________ is an action that you can take while in college to be better prepared for getting hired and being successful in your career. A. Taking the right classes B. Completing an internship C. Signing up for interviews D. Joining student organizations E. All the answers are correct.
All of the answers are correct.
Which of the following is not an area to focus on to improve yourself as a job candidate or employee? A. Technology. B. Leadership. C. Communication. D. Education. E. All these options are acceptable to focus on.
All of these options are acceptable to focus on.
When looking at our acronym S.P.E.N.D., the letter 'N' refers to whom? A. Salespeople. B. Co-workers. C. Family. D. Friends. E. All the answers are correct.
All the answers are correct.
Just because you are _____ for a loan does not mean you ______ it.
Approved; can afford
Just as your career is something that youmanage, your time in college or your "college career" is something you manage too. You begin with developing the right:
Attitude
Yana has just completed her budget. Her take-home pay is $3 comma 0003,000 per month. Her monthly total household expenses are $ 1 comma 560$1,560, her total debt payments are $910910, and she spends $550550 on food and entertainment and $225225 on clothes. Her budget indicates a monthly:
budget deficit
Yusef put some money in the bank in a specific type of account three months ago. When he went back into the bank to withdraw his money, he was told he would have to pay a penalty unless he waited three more months. This is because he put his money in a(n)
certificate of deposit
If you know you will not need access to your money for at least six months to one year, a(n) ____________ may be a viable option for you.
certificate of deposit (CD)
Basic financial planning
clears away the complexity
Tania, a 25-year-old student, has placed an amount of money into the stock market after seeking qualified advice from a trusted advisor. Since the money is in the stock market, it is likely not being used for:
an emergency fund
The reason it is suggested that you ________________ is so you handle the money the way you want to and make sure it is being spent on your highest priorities.
establish financial goals
A good college career _________ lets you evaluate where you are in your college career and identify opportunities that will give you the skills and experiences a potential employer finds attractive.
plan
For debt to be 'bad debt', the item purchased with that debt must:
display just one of these features: depreciate, last less time than the loan, or have negative financial leverage.
John is a famous athlete that made over $30 million during his professional athletic career. However, within three years after retiring from sports, he went bankrupt. Like many famous people who go broke, John most likely does not know how to:
control his spending
Kaitlyn was applying for a job. After the hiring manager read her application and reviewed her résumé, she didn't feel like Kaitlyn introduced herself or explained why she was seeking this job. Most likely Kaitlyn forgot to include her
cover letter
Your __________ makes you marketable, but it does not guarantee a job for you when you graduate.
diploma
The first thing you should do to prepare for an interview is to:
research the company
Deedra has been trying to be responsible with her money. She even paid off her student loans early! Unfortunately, her car broke down last week and the repairs cost her $1,000. Fortunately, she did not have to go into debt, but rather had the cash available in a separate account. Most likely this is because she had been.....
saving for emergencies
Bertha owns a $3,450 car, $500 in clothes, and $1,900 in electronic items and has $2,000 in her bank account. She has $7,200 in student loans and still owes $2,100 on her car. From this information we can conclude
she has negative net worth
It is a very good idea to make sure all correspondence with a collection agency is done by:
certified mail
You do not want to put your ____________ in a stock market account. A short-term drop in the market would mean your money would not be there when you needed it.
emergency fund for a 40-year-old
Gretchen is applying for a new credit card at the department store. They ran a quick check and denied her credit. When she inquired about the details of why she was denied, the credit bureau indicated she had missed several payments in the past. This means she was denied due to her:
character
Quynn was applying for a car loan. The bank was very happy with his history of making payments on time and his income. Their major concern was that his job was in new housing construction and the country was heading into a recession. Which of the five Cs of credit seemed to cause the most concern for the bank?
conditions
Franco's financial plan seemed to be going smoothly when suddenly he received a bill for $700 for personal property tax on his expensive car. This ruined his budget for the current month as well as the next several months. This could have been prevented if he had:
not forgotten non-monthly expenses.
Larry wanted to be fully prepared before attending the career fair at his college. He tried to summarize who he was, what he was seeking in a job, and how he could contribute in a quick 30-second introduction. In other words, he was practicing his:
elevator speech
To make sure your money is spent on your highest priorities, you should:
establish financial goals
You can expect ___________ to use your credit score to decide what they will charge or if they will do business with you as a consumer. A. landlords B. employers C. banks D. car insurance companies E. All the answers are correct.
All of the answers are correct.
Mary owns a local retail shop that is gaining in popularity. Many of her customers express an interest in buying more of her items, but they don't like to travel so far. Mary realizes that she could invest in her company and expand to other areas and hire more employees. Like most businesses, Mary is going to need ___________ to accomplish these goals.
credit
Chloe used a local _________ for her banking needs, because she enjoyed the lower fees and that it existed for people with a common interest - people who worked or lived in her community.
credit union
Charissa is working full-time with a decent salary. She would like to save $12 comma 00012,000 to own her own condominium in four years. Her goal is considered
mid-term
Saving is about: A. short-term goals. B. access to cash. C. keeping money safe. D. preserving money. E. All of the answers are correct.
All of the answers are correct.
The key to credit cards is to: A. know when to use them. B. understand how they work. C. know when to avoid using them. D. know what purpose they should serve. E. All the answers are correct.
All of the answers are correct.
A credit score is derived from gathering information from your ______________.
Credit report
The real reason most people attend college is to:
Get a better job
Frankie has never missed a payment on her credit cards or loans. She has been in her career for a few years and her industry is doing well. The bank, where she was applying for a loan, said its main concern was her capacity to handle the loan. What were they really concerned about?
Her income
Chia is working with a financial planner who is concerned about the potential that interest rates could start risingsoon, just before Chia is ready to buy a house. Her financial planner is focused on which common lifestyle force?
Macroeconomics
You are not ________ and neither is anyone else, so you can use this to your advantage.
special