Personal Finance
Which of the following can be used as collateral when taking out a personal loan?
Automobile
When you move the unpaid balance on one credit card to another card, this is a:
Balance transfer
You are a 16-year-old employee. Which of the following are you not allowed to do under the federal child labor laws?
Be a delivery driver
This type of bankruptcy is also known as a straight bankruptcy or liquidation. What is it?
Chapter 7
3.C's.of.credit
Character- A trait of creditworthiness that shows a responsible attitude toward paying debts Capacity- The ability to repay a loan from present income Collateral- Assets pledged to pay off a debt if payments are not made according to the contract; also called security
In selecting a baby's type of diapering, which method is the least expensive?
Cloth diapers
Land and buildings that produce income are known as what type of property?
Commercial
reconcile
Comparing and adjusting the checkbook record to balance with the bank statement
credit.report
Confidential report on a consumer's payment habits as reported by their creditors to a consumer credit reporting agency
When speaking about the responsibilities that come with using credit cards, reporting stolen cards promptly is the responsibility of:
Consumers
base.price
Cost of a vehicle with standard equipment; no options or upgrades
CARD.Act
Credit Card Accountability Responsibility and Disclosure Act, signed into law in May 2009, established fair and transparent practices in the credit card market
CRA
Credit Reporting Agency or credit bureau, a for-profit company that collects, stores, and distributes information about a consumer's payment habits
In today's American economy the easiest way to reserve a rental car is by:
Credit card
The Fair Credit Billing Act applies to:
Credit cards
The maximum amount of charges a credit card holder may apply to a credit card account is the:
Credit limit
skimming
Criminals use a device that copies information from a credit or debit card's magnetic strip in order to use the card illegally
You belong to a health club and you've given the club permission to deduct quarterly dues directly from your checking account. This is called:
Direct payment
title
Document that shows legal ownership of a vehicle
Who do labor unions represent?
Employees
flexible.expenses
Expenditures that change each month and can be reduced or eliminated if necessary
fixed.expenses
Expenses that are the same each month
FICO
Fair Isaac and Company, a credit score (number) between 300 and 850 that summarizes your credit risk
Minimum wage may be set by:
Federal law and perhaps state law
Which expenses stay roughly the same each month?
Fixed expenses
Banks are:
For-profit companies
When you have an outstanding balance on your credit card, you often pay interest right away on new purchases, too. In this case you have forfeited your right to a:
Grace period
To be counted as unemployed, a person does not have a job and
Is looking for work
needs
Items necessary to live, such as clothing, food and shelter
wants
Items that are desired, but that are not needed to live
What is true about student loans and your credit history?
Late payments will negatively affect your credit
registration
Legally recording ownership of a vehicle with a government agency for tax and licensing purposes; the registration certificate is carried in the vehicle
secured.credit
Loan for which some form of acceptable collateral, such as a house or automobile, has been pledged
You do not regularly receive canceled checks back from your bank. But, now you need a copy to prove you made a payment. Your bank:
May charge a fee to provide the check
You are applying for a job that will not require you to handle money. Your potential employer:
May use your credit report to gauge how responsible you are
What group of workers does not fall under the jurisdiction of the U.S. Department of Labor's Occupational Safety & Health Administration?
Miners
The term "Negotiable order of withdrawal" refers to what type of checking account:
NOW Account
NHTSA
National Highway Traffic Safety Administration, the federal agency dedicated to achieving the highest standards of excellence in motor vehicle and highway safety
Late payments stay on your credit report:
No more than seven years from the original date of delinquency
avoid.risk
Not engaging in behavior that could cause a financial loss
For each dollar Social Security takes in, about 75% is paid out in:
Old Age and Survivors Insurance
transfer.risk
Paying a fee for another party to assume your financial loss
assume.risk
Paying the full price if a financial loss occurs
The amount of debt, not counting interest, left on a loan is.
Principal
The outstanding balance of a loan, exclusive of interest and other charges, is the:
Principal
factory.warranty
Promise by the vehicle manufacturer to repair or replace defective components for a specific period of time
In the normal course of collecting debts, debt collectors may not:
Publish your name in the local paper
PYF-pay.yourself.first
Putting money into savings each month (or each paycheck) before paying other bills
A limited period of no economic growth and high unemployment is considered a:
Recession
recall
When a safety defect is discovered, the manufacturer is required to remedy the problem at no charge to the owner
When do you pay sales tax?
When you buy a product
Which of the following are benefits of keeping money in an account at an insured bank, thrift or credit union?
Your savings are insured if the institution goes out of business; You receive a monthly statement to help you manage your spending and savings
Estimated market or trade-in worth of a used vehicle as published in a guide by businesses such as Kelley Blue Book, Edmunds or NADA
bookvalue
Your company offers a 401(k) plan. This allows you to:
Save for retirement
Income not spent on current consumption is:
Savings
extendedwarranty
Service contract that provides for no cost or low cost vehicle repair, after the factory or dealer warranty expires
If late payments on your credit report are correct, they can remain in your file for up to how many years?
Seven
Your monthly telephone bill represents what type of credit?
Single payment credit
VIN
Vehicle Identification Number, a unique code used by the automobile industry to identify and track each vehicle manufactured
When speaking of work, compensation refers to:
Wages plus fringe benefits
By law, credit-reporting agencies can keep bankruptcy information on an individual's credit history for how many years?
10 years
You earned 8 percent on a bond. During this time the inflation rate was 3 percent. What was your inflation-adjusted return?
5 percent
You are a 14-year-old worker who has a job after school. How late may you work?
7 p.m.
credit.card
A card that authorizes the delivery of cash, goods or services for future payment with interest, according to a specific repayment schedule
debit.card
A card, issued by a financial institution, that allows consumers to make purchases, withdrawals, or other types of electronic fund transfers directly from checking or savings accounts
installment.credit
A contract for the loan of a specified amount, the contract issued tells the amount of purchase, the total finance charge, and the amount of each payment
revolving.credit
A credit agreement that allows consumers to pay all or part of the outstanding balance on a loan or credit card. As credit is paid off, it becomes available to use again
charge.card
A credit card which requires full payment of the bill each month; no interest is charged
overdraft.protection
A line of credit that allows you to spend more funds than your actual balance
credit.score
A number representing your creditworthiness, based on the factual information in your credit file
credit.history
A record of your credit performance, how you pay back creditors
credit.inquiry
A request by a business, a potential lender, to review your credit history because you have applied for credit with them
What does inflation mean?
A rise in most prices.
credit.score
A statistical system used to rate credit applicants according to various characteristics relevant to creditworthiness
Monroney.sticker
A window sticker, required by law to be placed on every new vehicle, includes information such as MSRP and fuel economy
delinquent
Accounts past due, required payment not made to creditor
service.credit
Agreement to pay after you receive a service; examples include cell phone use or utilities
overdraft
An expenditure (check or debit card) made without sufficient money in an account to cover it
budget
An organized spending and savings plan whereby you match your expected income to your expected outflow
impulse.buy
An unplanned decision to purchase retail merchandise on a whim or at the spur of the moment
invoice.price
Approximate price the dealership pays to the manufacturer for the vehicle
A municipal bond is issued by:
State and local governments
reduce.risk
Taking steps to eliminate the likely possibility of financial loss
Most of the money used to pay for police departments comes from
Taxes paid to the government
credit.worthiness
The ability of a consumer to receive approval for the use of credit from an establishment to which they apply
What is a credit limit?
The amount of credit you are authorized to use.
default
The failure to meet a financial obligation
When an issuer calls its bonds, this means:
The issuer is redeeming the bonds
risk
The probability of financial loss
FTC.Used.Car.Rule
The rule that requires all used car dealers to place a "Buyers Guide" in a conspicuous place in each used vehicle they offer for sale
cash.flow
The total amount of money being transferred into or out of a business, account or an individual's budget
lemon.laws
These state laws protect buyers when vehicles have serious defects
Some cards allow holders to make purchases at numerous businesses but the entire balance must be repaid within 30 days. These are called:
charge cards
Which of the following is the person to whom debts are owed?
creditor
For purposes of filing a tax return, the income you received from babysitting is called:
earned income
IRA
individual retirement account A retirement plan that allows workers to set aside money each year in tax-deferred savings
An asset purchased with the goal of providing additional income from the asset itself is called:
investing
When you purchase a car, MSRP refers to:
manufacturer's suggested retail price
Group health coverage for COBRA participants is generally:
more expensive than health coverage for active employees
When purchasing a car, which of the following is included in the car's base price?
the factory warranty