fin 201 final
research the dealer cost and begin negotiations from that point
George has never bought a new car before. Which of the following techniques should he use to get the best deal?
false
as interest rates increase, more people are able to afford the cost of an average-priced home.
false
federal income tax returns must be filed by April 1 of each year
false
financial documents that you may need quick access to should be kept in a safe deposit box
true
if you are a cosigner for a loan and the debt is not repaid, that fact will appear on your credit report
true
if you are borrowing money to buy a home, the lender will require that homeowners purchase home (property) insurance
you are entitled to a free copy of your credit report
if you are deined credit
file a police report
if you think your identity has been stolen, which of the following actions does the federal trade commission recommend you take immediately?
true
in determining the purchase price of a new car, a trade in vehicle should not be mentioned until the cost of the new car has been settled.
true
inflation is a rise in the general level of prices and it, reduces the buying power of the dollar
true
insurance is protection against possible finacial loss
false
it is illegal to use a credit score to determine the premium to charge an individual
false
making transactions using a credit card will immediately reduce your bank balance
true
many people use credit to live within there meanas
closed-end credit
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
true
money management refers to day-to-day financial activities necessary to manage current personal economic resources while working toward long-term financial security
false
most states do not require state income taxes
true
net worth is the amount owed to others
false
opportunity cost refer to money already spent
it applies to vehicles that have been serviced four times to correct the same problem in the first 12,000 miles
what of the following is correct about the lemon law
true
when ted needs more cash than he has available, his choices include liquidating savings and borrowing
paying for a medical emergency paying for everyday living expenses buying a car so a homemaker can return to work borrowing for a college education
which of the following is NOT a valid reason for borrowing?
At the end of the lease, you have no ownership interest in the vehicle
which of the following is a disadvantage of a car lease?
tenants connot take tax deductions for mortage interest and property taxes
which of the following is a disadvantage of renting
escrow
which of the following is an account used to pay property taxes and homeowners insurance?
using credit can increase the amount of money that will be available to spend in the future
which of the following is not correct
FICO
which of the following is not one of the three major credit bureaus?
deed
which of the following is the document that transfers ownership of property from one party to another?
false
Abigail checked out brands and prices of blue jeans at several stores. she was impulse shopping
lessee
The tenant is a
false
an example of a peril is defective wiring
false
a commercial bank is the same thing as a credit union
provides older home owners with tax-free incom ein the form of a loan that is repaid when the home is sold or the home owner dies
a reverse mortgage
false
a trade off of using credit is that it increases the amount of money that will be available to spend in the future
capitalized cost
a vehicle lease has several cost. which of the following is the expected value at the end of the lease
money factor
a vehicle lease has several cost. which of the following is the interest rate used to calculate the monthly cost?
false
adjusted gross income is increased by the itemized or standard deduction
true
advantages of a lease over a purchase included that the buyer can usually obtain a more expensive vehicle and the monthly lease payments are usually lower than monthly financial payments
true
after two or three years of making loan payments on a new car, the balance owed is greater than the value of the car, which is a situation referred to as upside-down
tru
close ended credit is used for a specific purpose and involves a specific amount.
false
consumer credit refers to the use of debit cards for personal needs.
true
current liabilities are the debts you must pay within a short time, usually less than a year.
true
personal financial planning is the process of managing your money to achieve personal economic satisfaction
false
prices at the local convenience store will probably be lower than at the national retail grocery store.
false
private mortgage insurance is usually required if the down payment for a home is less than 30%
false
rental insurance is not important since the landlords insurance on the building includes coverage on all tenants belongings
true
short-term goals are usually achieved within the next year or so
sticker price
the amount printed on a label with the suggested retail price that is posted on a vehicle is called the
false
the average tax rate is the tax paid on the next dollar of taxable income
false
the best option for borrowing money at a low rate is to use payday loan organization
invoice price
the dealers cost is also known as
race nationality sex age
the equal credit opportunity act (ECOA) prohibits a lender form discriminating based on
true
the first step in developing a personal insurance program is to set insurance goals
subletting
the opportunity to have another person take over rent payments and live in the rental unit is called
