Ch.4 debt quizzes for final ( Ramsey)
When you pay cash rather than swiping a card, you spend _______________.
12-18% less
Never take out more than a ______________ fixed-rate mortgage.
15-year
The birth of the credit card occurred around what year?
1950
The Federal Fair Credit Reporting Act requires the credit bureau to remove any and all inaccuracies within ___________ of being notified.
30 days
It takes the average consumer about _____________ hours to clean up the mess when their identity is stolen.
600
Consumer Reports did a study that showed _____________ of airline miles are never redeemed.
75%
What percentage of millionaires started with nothing?
80%
The most expensive way to finance and operate a vehicle is:
A car lease
opportunity:
Abounds everywhere
Dave describes some people who incorrectly believe that a "Dave car" must be...
An old beater car with smoke coming out the back
College students receive an average of four phone calls and five mailings each month encouraging them to:
Apply for credit cards
Statistics show that if a credit card company can be the first one to get their card in your hand, you'll __________________ for the rest of your life.
Be brand loyal to them
According to 75% of the Forbes 400 list, the #1 key to wealth building is to:
Become and then stay debt-free
Most millionaires have become millionaires by:
Buying and paying cash for used cars
If you're poor and you do rich people stuff, like saving and budgeting, you'll
End up rich
Cash advance, rent-to-own, title pawning, and payday lending are services to lower income people to help them get ahead.
False
Debt can be occasionally used to create prosperity if you're careful.
False
Debt is a wise financial choice because of the rewards you get back.
False
Everything that's said on TV and by the media is true.
False
Kids are supposed to carry the burden of the household when it comes to debt.
False
Loaning money to a friend or a relative is helping them.
False
Playing the lottery and other kinds of gambling will make you rich.
False
The 1910 Sears Catalog said, "Buying on credit is the best thing you can do."
False
There may be occasional reasons to go into debt, like real emergencies.
False
When a theft occurs, you are liable for all the money that an identify thief used
False
You have to build credit to survive.
False
You need to build up your credit to survive.
False
You can do everything with a debit card that you can do with a credit card except:
Go into debt
If you're trying to help out parents who are struggling, the best place to start is with an attitude of ________________.
Humility
When McDonald's first went plastic, they saw that the average ticket order of $4.75 ______________ to ______________ .
Increase; $7.00
If you spread a myth long enough, what happens?
It becomes accepted as the truth
You get a new way of doing things from
Learning
The car payment is the mantra of the ___________________
Middle Class
The first thing to go when life happens is
Paying extra on the house payment
A broke finance professor is like a:
Shop teacher with missing fingers
What myth do students believe about debt in college?
That they can buy whatever they want while in college and can pay for it later.
Banks require a co-signer because they know:
The person signing the loan won't repay the loan
A cool looking car isn't necessary for school.
True
A new car loses about 70% of its value in the first 4 years.
True
About 80% of identities are stolen by people you know.
True
Debt has been marketed to us for so long, most people struggle to imagine life without it.
True
If you pay a $225,000 Mortgage at 6% for 15 years rather than 30 years, you'll save $143,874.
True
It is a myth that car payments are a way of life and you'll always have them.
True
It's a myth that you need a credit card to rent a car or make a purchase online.
True
It's always better to just give family money rather than expect it back.
True
It's possible to not have a FICO score.
True
The FICO score is an "I Love Debt" score.
True
You can run a debit card as a credit card to get the same protection as a credit card.
True
If you want to win, find _____________ and mimic what they're doing.
Winners
The term "upside down" when it comes to cars means:
You owe more than the car is worth
If you drive a car that your parents have a loan on:
You should sit down and talk to them about options
Thirty-five percent of how a FICO score is calculated is based on:
Your debt history
Your largest wealth building tool is your:
income
The questions of broke people are:
"How much down?" and "How much a month?"
Teenagers and kids are now the ____________ target of credit card companies.
#1
The average car payment in the USA today is:
$464 a month
Consumers spend ______________ a year on credit card penalties and fees.
$90 billion
