FCS 340
When you select a financial services provider, what are major factors to consider?
-Borrow money if needed. -Min. cost of checking & payment services -Bet return on savings
List disadvantages of a car lease
-No ownership -Must meet requirements -Additional cost may occur
Information about a personal bankruptcy may be reported in your credit file for _______years.
10 years
Experts suggest that the debt payments-to-income ratio should be a maximum of __________.
20%
FICO scores generally range from _____________________.
350-850
The Truth in Savings Act requires financial institutions to disclose the _______________________ on savings accounts
Annual Percentage Yield
Name the three credit bureaus.
Experian, TransUnion, Equifax
Which of the financial services listed in Question 3 will likely provide the most expensive access to funds?
Payday loan
What does the term negative equity mean?
Value of car is less than amount owed
What steps can you take if your credit application is denied?
Why denied? Ask to investigate
What are the differences in the following? a. A debit card. b. A credit card. c. An online payment. d. A stored-value card. e. A smart card.
d. prepaid card e. Has chip on card. Can store info on card."Digital Wallet"
The insurance coverage provided by the FDIC for a savings account is ________________________ per depositor.
$250,000
If you lose your debit card and notify your financial institution within two days, how much are you potentially liable for?
$50
What does the term liquidity mean?
Allows w/draw of money in short notices w/o loss of value or fees
The APR is the percentage cost of credit on a(n) ______________ basis.
Annual
What does the term "convenience user" mean as it pertains to credit
Borrow money interest free
What is unit pricing?
Breaking it down
Define impulse shopping
Buyings something spur of the moment/randomly
Personal bankruptcy can be filed under which section(s) of the U.S. bankruptcy code?
Chapter 7 & 13
What type of institution is most likely to provide a full range of financial services, including checking, savings, and lending?
Commercial Bank
39. Define comparison shopping
Compare what you're buying
Earning interest on interest is called
Compound interest
What information does a credit report include?
Credit History
What is the largest fixed expense associated with a new automobile?
Depreciation
How do you calculate the debt-to-equity ratio? What loans are not to be included?
Divide money debt by monthly income. House loan not included
What does the Consumer Credit Counseling Service do?
Helps family get out of debt
If you miss payments on a home equity loan, you can lose your _______________________.
House
The periodic charge for the use of credit is called __________________.
Interest
What would be considered a drawback of a savings account?
Low Interest Rate
What is a stop-payment order? When do you use it?
Not to pay check company had written. When deal goes bad.
Where can you get the least expensive loan?
Parents and/or family member
Ed needed some cash quickly, so he received a short-term loan based on the value of an old ring. Where did he go?
Pawn Shop
Earnings on savings can be measured by the
Rate of return
The minimum monthly payment on a credit card is the _____________amount you can pay and remain a borrower in ___________________________.
Smallest good standing
A certificate of deposit that has different interest levels based on the stock market performance is called a
Stock Index CD
Many think that perhaps the greatest disadvantage of using credit is ______________________.
Temptation to overspend
Explain the following types of warranties: a. Express warranty b. Limited warranty c. Full warranty d. Implied warranty
a. Created by seller. 2 forms: Full & limited warranty b.Covers only certain aspects c. Fix/replace in reasonable time d. Covers intended use
Define the following: a. Invoice price. b. Sticker price. c. Capitalized cost. d. Residual value.
a. Dealers pay b. Suggested retail c. Leased vehicle begin d. How much at end of lease
Explain the following types of endorsements: a. Blank endorsement. b. Restrictive endorsement. c. Special endorsement.
a. Just your signature b. Consist of words deposit only followed by signature c. Transfer check to someone else
16. What are the differences in the following? a. Certified check. b. Cashier's check. c. Money order. d. Personal check. e. Traveler's check.
a. Personal check w/ guaranteed payment b.Guaranteed by bank c.Printed order of payment e.Allows to make payment when away from home
What are the differences in the following? What do each offer? a. A certificate of deposit b. An interest-earning checking account c. A money market account d. A money market fund e. A regular savings account
a. Saving Plan. Require certain amt. & left for on deposit for certain time period b. Acct. thats earns interest c. Saving acct. that requires mim. balance & earns earnings d.Mutual fund that invest in short term debt securities
Explain the following: a. Closed-end credit. b. Open-end credit. c. Revolving check credit. d. A line of credit.
a. Used for specific purpose & specific amount b.Using credit card issued by certain store c. Pre-arranged loan for specific amount d. Money amount that may/may not be borrowed
What type of financial services do to the following provide? a. A credit card company- b. An investment company- c. A life insurance company- d. A mortgage company- e. A payday loan company-
a. short term retain lending b.money-market fund- combination of savings-investing plan c.Financial security w/ various life insurance policies d. Provide loans for home purchase e. Quick money. Hold check until payday
Name the only online source authorized to provide a free credit report each year at your request.
annual credit report .com
If you double the monthly payment for a credit card, the loan will be paid off in ____________ than half time.
less