National Financial Literacy

If he went to a state college rather than a private college

Doug must borrow $12,000 to complete his college education. Which of the following would NOT be likely to reduce the finance charge rate?

It will take more than a decade to pay off the bill

If you buy a computer for $2,000 on your credit card (at 24% interest) and make a minimum payment of $60 each month, which of the following is true?

you will pay more in interest than for the computer

If you buy a computer for $2,000 on your credit card (ay 24% interest) and make a minimum payment of $60 each month, which of the following is true?

Income tax may be charged on the interest if your income is high enough

If you had a savings account at a bank, which of the following would be correct concerning the interest that you would earn on this account?

with the 12% card you would pay it off 6 months faster

If you make a $500 purchase on your credit card which has a 19% interest rate as compared to a 12% interest rate, which of the following is true when making a minimum monthly payment of $15?

60 days

If you want to dispute credit card charges, how much time do you have to contact your credit card company after receiving your bill?

$50

If your credit card is stolen and the thief runs up a total debt of $1,000, but you notify the issuer of the card as soon as you discover it is missing, what is the maximum amount that you can be forced to pay according to Federal law?

stocks

Kelly and Pete just had a baby. They received money as baby gifts and want to put it away for the baby's education. Which of the following tends to have the highest growth over periods of time as long as 18 years?

a pension

Retirement income paid by a company is called:

insurance

To be protected against the risks of uncertain loss is

provides compensation for any mishaps that occur on your home

what is home insurance?

property insurance

provides protection against risks to property, such as fire, theft, or weather damage

Worker's compensation

replacing all or part of a worker's wages lost and accompanying medical expenses incurred because of a job-related injury is?

usually a period of 25 days where you can pay your bill without paying a finance charge

Many credit cards give a "Grace Period" What is this grace period?

invested in a down payment on the house

Many people put aside money to take care of unexpected expenses. If John and Jenny have money put aside for emergencies, in which of the following forms would it be of LEAST benefit to them if they needed it right away?

double, at least, from when she was in college

Maria worked her way through college earning $20,000 per year. After graduation, her first job pays $40,000. The total dollar amount Maria will have to pay in Federal Income taxes in her new job will:

Eric will pay less because the car is collateral for the loan

Matt and Eric are young men. Each has a good credit history. They work at the same company and make approximately the same salary. Matt has borrowed $6,000 to take a foreign vacation. Eric has borrowed $6,000 to buy a car. Who is likely to pay the lowest finance charge?

$8367

The average household in the US (as of 2001) that has credit cards currently has how much in credit card debt?

provides coverage for business property and liability

What are the main advantages of Business Insurance?

liability, physical damage coverage, and uninsured and underinsured motorists coverage

What are the three types of auto insurance?

to sign your name on th back of a check so you can cash the check or deposit it

What does endorse mean?

an account at a bank that allows a person to write checks and deposit and withdraw money

What is a checking account?

The amount of money in a bank account

What is balance?

$607.7 billion

What is the approximate total amount of outstanding credit card loans (as of 2001) in the US?

short term disability, long term disability

When an individual loses his ability to work due to an illness or accident, what are his disability insurance choices?

savings account

Where should you put your short term savings?

Your credit card can be checked once a year for free

Which of the following statements best describes your right to check your credit history for accuracy?

health insurance

Which type of insurance pays doctor fees, hospital fees, medicine cost and other health related bills?

a monthly premium

With life insurance, how often does the policy holder have to pay for his or her benefits?

burial insurance

insurance that is paid upon death to cover final expenses