personal finance
Which of the following online activities should be avoided?
ONLINE POP-UP ADS OFFERING CREDIT
An account on which the account holder can charge repeatedly up to a maximum limit
REVOVLING CREDIT
You are most likely to finance the purchase of a new car through a
SALES FINANCE COMPANY
Money paid by a tenant that is refundable at the end of a lease is called a(n)
SECURITY DEPOSIT
The ability to receive services, such as care by a doctor, and pay for them later is called
SERVICE CREDIT
Which of the following is NOT a type of living habit?
VEHICLE USED FOR TRANSPORTATION
Property used as security for a loan
collateral
The person who borrows money is known as the
debtor
A fee charged for violating a credit agreement is called a rebate.
false
A subsidized student loan begins to accrue interest from the moment you take the loan.
false
Credit cards are a form of installment credit.
false
It is not important to comparison-shop for credit when buying a new car.
false
Rent-to-own is a fast, conventient, and inexpensive way to start buying furniture, appliances, etc.
false
The amount of time you have to pay your credit card without having to pay interest on your new purchases
grace period
To reduce the costs of using credit, you can
keep the number of credit cards and accounts you have to a minimum
The highest price a property will bring on the open market
market value
A long-term debt agreement used to purchase a house
mortgage
Something of value applied toward the down payment of a new purchase
trade-in
A lender may require a borrower to provide collateral for a loan
true
Before moving in with a roommate, you should be certain that you are compatible and share similar living habits.
true
Buying a house generally involves a large cash down payment of 10 to 20 percent of the total purchase price of the house.
true
Buying luxury items while basic needs are not being met is an example of financial irresponsibility.
true
Credit cards often have variable interest rates because you borrow money at various times.
true
If you pay the full amount owed on your credit card each month, you can avoid paying interest on the outstanding balance.
true
Landlords are required to provide a safe, sanitary, and habitable living site for a tenant.
true
Many merchants encourage their customers to use store credit accounts.
true
Oral contracts are more easily enforceable than written contracts.
true
People who payoff credit balances each month should avoid credit cards with annual fees.
true
Using credit provides increased spending power.
true
When a car loan is upside down, you owe more on your car than it is worth.
true
When using credit, it is important to consider the economy because it can affect interest rates.
true
When you are financially responsible, you are able to meet your own needs by carefully managing your resources.
true
Without credit, many people would have to wait to buy things such as a house or a car.
true
Credit cards typically have a billing cycle of about
20-25 days
When interest for a credit card is calculated based on the amount owed after new charges and payments have been calculated into the balance, the _____ method is used
ADJUSTED BALANCE
A yearly charge to your credit card account for membership
ANNUAL FEE
Unlike the value of most cars, the value of a house generally
APPRECIATES OVERTIME
An organized method for making good buying decisions
BUYING PLAN
A penalty for closing your account prior to a stated period
CANCELLATION FEE
Which of the following types of credit requires that you pay the balance in full each month?
CHARGE CARD
Following graduation, students can consolidate their student loans, which means
COMBINE THEM INTO SINGLE LOAN WITH ONE MONTHLY PAYMENT
The person or company who extends credit to a borrower is called the
CREDITOR
The difference in a property's value and what is owed on it is known as
EQUITY
Paying off an old loan by taking out a new loan with better terms is known as
FINANCING
Credit for a set amount that is to be paid off in a set period of time is called
INSTALLMENT CREDIT
Credit used to finance a single, high-priced item through a series of equal payments made over a set period of time
INSTALLMENT CREDIT
Which of the following types of credit usually have a fixed rate of interest for a set period of time?
INSTALLMENT LOAN
When you receive your credit card statement, you should?
all
Which of the following is a symptom of financial irresponsibility?
all
A disadvantage of using credit is that
buying on credit can tie up future income
