Personal finance Test- chapter 9,10,11

Another word for ownership

Equity

When a mortgage has an interest rate that remains the same for the life of the loan

Fixed

Which of the following is NOt a good reason for taking a personal loan?

David needs to Borrow 1,000 dollars so he can buy season tickets to see the Yankees play

Each of these are high interest options for individuals with very poor credit, EXCEPT

Debt consolidation

One way to take your School loans, credit card debt, and personal loan payment, and combined them into one payment is through

Debt consolidation

The process of combining several small accounts into one larger account

Debt consolidation

The fraction of an items cost that a consumer pays upfront is called the

Down payment

The time during which the credit card company does not charge you interest after having billed you

Grace period

With a mortgage, the ___ is out up as collateral

House

When someone uses your personal information without your permission for personal gain

Identity theft

Which of the following is a true statement about credit cards?

If a person pays her total credit card bill within the grace period, there is no interest charged

Fees charged by a lender on borrowed money

Interest

A long term rental agreement

Lease

Loans taken out to purchase a house are commonly called

Mortgage

A store advertising "30 day same as cash" is advertising which type of credit?

Non installment credit

Additional coverage added to an insurance policy

Policy rider

The major purpose of the Equal Credit Opportunity Act is to

Prohibit creditors from using age,religion, or race to deny credit to a person

Which of the following is an example of pretexting?

Receiving a phone call from someone posing as your bank

Total percentage cost of credit

APR

Personal loans are typically use for large purchases such as

All of the above

One great advantage of using a credit card is that it provides

An easy way to establish a personal credit history

Also known as APR

Annual percentage rate

One way that credit cards encourage people to use their credit is by offering them

Cash back /rewards

The best was to protect against identity theft is to

Check credit bureau personal credit reports regularly

Assets that have been pledged against loan repayment

Collateral

Someone other than the borrower who agrees to sign the loan documents into repay the loan if the original borrower stops making payment

Cosigner

Which of the following is not an advantage of using credit?

Credit can carry extremely high interest rates

Which of the following would be the best option for making small purchases

Credit card

The maximum amount that you can borrow using a credit card

Credit limit

Dustin requested his ______ from TransUnion, which is a___

Credit report;credit bureau

If a person has a credit card with a limit of $2,000,it means that

The credit card company is loaning him up to $2,000 to make purchases

Cody had 500 showing as his principal on the loan. The principal can be defined as

The total amount outstanding on the loan

Which of the following terms is NOt correctly matched with its definition

Unsecured loan: a loan that has an asset pledged as collateral