Unit 9: Self Test 1

In most cases, the most you will owe for unauthorized charges is...

$50

Savings account

A bank service in which the depositor puts his money in the bank for the purpose of drawing interest

No-haggle dealership

A car market where the price sticker is the final sale price. There is no discussion over a final price.

Name-brand

A famous-name product that may be more expensive due solely to its high-recognition

Option

A feature that may or may not be included in the overall package of the car

A free period is also called...

A grace period

Warranty

A guarantee that is legally binding to hold the dealership to what it has promised

Annual percentage rate

A measure of the yearly cost of credit

Down payment

A partial payment is given in order to show intent of purchase

Bank savings book

A small journal which is a continually updated account of the money available in one's savings account

Cashless society

A society where consumers rely solely on credit cards, debit cards, electronic accounts, and checks

Process

Actions which take the check from the merchant to the accounting centers of the bank

Free period

Allows you to avoid the finance charge by paying your current balance in full before "due date" shown

Budget

An itemized account of the possible income and expenditures over a given period of time

Factory direct

Another name for manufacturer-to-consumer selling

Better Business Bureau

Consumer "watchdog"; assists the buyer by reporting unfair business practices

Solicitation

Enticing a person to purchase a product or service

Add-ons

Extras that are above the standard components of a car

Impulse buying

Making a purchase on the spur of the moment without careful planning

Debt

Money owed to a person or a business

Income

Money received as earnings from work or the selling of goods

Middleman

Money will not only go to the manufacturer, but also to the store that stocks and sells the product

What does NSF stand for?

Non-sufficient funds

Non-sufficient funds

Notice sent to the customer if his deposits are not enough to cover the costs of the check he has written

Remember that buying a car should be ... not ...

Objective not subjective

Never charge more on your credit cards than you can afford to pay in...

One month

Steward

One who manages money or the affairs of a household

Automated telephone banking

Phone system allows you to call in to a service center and find out your balance up to the minute

Monthly budget

Planned income and expenditures for a calendar month

A card issuer is required to credit your account on the day the issuer received your payment. This is known as...

Prompt credit for payment

What verse says "He that tilleth his land shall be satisfied with bread" ?

Proverbs 12:11

What verse says "Wealth gotten by vanity shall be diminished; but he that gathers by labor shall increase" ?

Proverbs 13:11

What verse tells us "There is treasure... and oil in the dwelling of the wise" ?

Proverbs 21:20

What verse says that if you borrow money you are the lender's slave?

Proverbs 22:7

What verse says "Labor not to be rich; cease from thine own wisdom. Will you set thine eyes upon that which is not?" ?

Proverbs 23:4-5

What verse says "Honor the Lord with thy substance and with the first fruits of all thine increase" ?

Proverbs 3:5-10

Standard

Regular features that do not cost the car buyer above the listed cost

Expense

Something on which money is spent

How do you find the bottom line?

Subtract the expenses from income

Adjusted balance

Subtracting credits received during present billing period from balance owed the previous billing period

Check date

Tells the bank the length of time used in the processing of the check as well as the day of purchase

Credit limit

The amount of spending that the credit card company will allow you

As-is

The car is purchased with no improvements to be added

Bank balance

The current money available in the depositor's account

Payee

The person who will receive the check as payment

Minimum balance

The smallest amount allowed in an account without a financial penalty

Consignment shop

The store that sells an individual's goods in an agreement where both parties split the profit.

Nehemiah 10:37 discusses the importance of...

Tithing

Gross income

Total money earned, before deductions are made

Affinity cards

Transfers a portion of the annual fees or charges to the sponsoring organization of the card

Frivolous

Trivial, not requiring serious thought; considered silly

Checking account

Type of bank account that uses written orders to direct payment from a bank based upon the funds available from a depositor's account

Wholesale club

Type of business that eliminates the retail part of the transaction

Overdraw

Writing a check for more money than is available in your account

Annual fees

Yearly membership or other participation fees ranging from $25 to $50 for most cards

Memo/signature

Your personal autograph attesting to the validity of the checking account; the memo tells of the ourchase

What are 4 questions to ask yourself as you make a budget?

1. Are my checking and savings accounts smaller than they were six months ago? 2. Am I tempted to use a credit card for a charge when I do not know whether or not I can pay the bill? 3. Am I falling behind on my bills to my creditors? 4. Are my creditors charging me with late fees?

Tithe

10% return back to the Lord from income you received; derived from Old Testament passages such as Deuteronomy 2:11

What percent of the country's money in circulation is in checking accounts?

75%

Proverbs 3:5-10 could be titled...

God's Plan for Financial Prosperity

Transaction fees

Other types of costs; might include a fee when you use the card to obtain a cash advance

Putting money into a savings account is known as...

Paying yourself