personal finance 4-6

If Vince charged $200 on his credit card with 18% APR and he paid his balance in full within the grade period, how much was Vince required to pay?

$200.00

Paul borrowed $200 to be repaid in one year. He paid 10% interest and a service charge of $3.00. What is Paul's finance charge?

$23.00

Becka borrowed $100 from her cousin at a rate of 6% per year. If the inflation rate was 2% that year, what is her cousin's actual rate of return on the loan?

4%

Which of the following costs will increase directly with the number of miles driven?

Gasoline

A service contract?

Service contract an agreement between a business & a consumer to cover the repair costs of a product -Sometimes called extended warranties (they aren't warranties)

While evaluating alternatives, comparison shopping will be beneficial for buying?

the process of considering alternative stores, brands, & prices

A loan from a pawnshop will be more expensive than one from the bank.

true

Which of the following is correct about the lemon law?

1. Problem 3 times 2. been in shop more than 30 days during first year. 3. Safety issue 4. Consumer confidence has been shaken due to multiple problems.

Closed-end credit consists of loans made on a continuous basis with periodic bills for at least partial payment.

False

Who is responsible for setting regulations for commercial banks, studying trends in the economy, forecasting future economic direction, and overseeing the 12 Reserve Banks?

Board of Governor's

Prices at the local convenience store will probably be lower than at the national retail grocery store.

False

The question "what are your assets and net worth?" relates to which of the C's of credit?

Capital.

Molly purchased a $1,500 dishwasher from Best Appliances. She will make 12 equal payments over the next year to pay for it. She is using?

Closed-end credit.

The use of property or savings to secure a loan relates to which of the C's of credit?

Collateral.

A credit report includes?

Credit history.

When evaluating your credit application, a lender may NOT?

Deny you credit if you receive public assistance.

"The Fed" is the abbreviated nickname for?

The Federal Reserve

A credit card holder who pays the full balance during the grace period each month is actually getting a free loan from the credit card company.

True

To protect your credit card, you should keep a record of your credit card number separate from your card.

True

If you are somewhat interested in a specific vehicle, you should provide a small deposit so the car seller will hold the vehicle for you.

false