Studied by 2 people
Why should you stay away from borrowing up to your credit limit?
It reflects poorly on your credit score.
You find evidence that your identity has been stolen. Who should you contact first?
The Federal Trade Commission.
Which of the following deductions are you most likely to see on your pay stub?
Social Security deduction
What is the main purpose of the dual accounting method?
To record every transaction twice, reflecting them in accounts and in your budget.
If you wanted to know what factors contributed to your credit score, how could you find out?
Check your credit report.
What's a "hard inquiry"?
When a financial institution requests information about your credit history for the purpose of extending more credit.
Which of the following shows up on your credit report?
How many open accounts you have, and your payment history.
What is a debt-to-income ratio?
The ratio of your debt compared to your annual income, something that lenders look at on your credit report, and a percentage that helps lenders decide your ability to pay back a loan.
You hit a deer while driving. The deer is fine but your car isn't. What kind of insurance must you have in order for the damage to be covered?
Comprehensive
What percentage of a home price is typically required for your down payment if you want to avoid purchasing private mortgage insurance (PMI)?
20%
Which of these is not identity theft?
A scammer poses as a representative from a charity and asks for money.
Why would you want to claim an exemption on your pay stub?
It will lower the amount of taxable income you have.
You bought $230 in clothes and charged it to your credit card. What happens if you don't pay the balance off by the end of the month?
You'll start to accrue interest on your credit card balance.
You don't have dependents. Do you still need life insurance?
Yes; it can pay for medical and funeral costs.
What would be the main benefit of paying in cash for a car instead of taking out a loan?
You don't have to pay interest because you won't have a loan.
What does APR stand for?
What does APR stand for?
Which of the following is true about tax returns?
The number of exemptions you declare will affect if and how much you get on your return.
What is a 401(k)?
An employer sponsored retirement plan where you contribute some of your paycheck.
In order to qualify for a mortgage with good rates, you have to have a high enough.
Credit score.
Which of the following is true about car loan terms?
The shorter the term, the lower the interest rate.
What is the best protection against uninsured drivers?
Uninsured motorist coverage.
When you apply for a mortgage, the lending institution will likely use your gross income to help decide if you qualify. What is that?
Your income before taxes are taken out.
When buying something with a loan, you can lower the amount you pay each month by paying a higher .
Down payment.
You got in a car accident and repairs will cost $3,000. After filing your insurance claim, you only paid $500. Why?
Your deductible is $500.
Your is the amount you own in assets minus everything you owe.
Net Worth
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