Quiz ?'s
Finance Math
Vocab Category
Quiz ?'s 2
Test Prep Questions
100
Which of the following would be LEAST likely to issue personal loans? a. a major auto company b. a major supermarket chain c. an appliance retailer d. a credit union
What is B. A Major Supermarket Chain
100
Jen and Mark, two customers at an appliance retailer, are each taking out a personal loan of $2,000 to finance the purchase of new appliances. Jen has been offered a two-year loan and monthly payments of $91.36. Based on a lower income and weaker credit history, Mark was offered a two-year loan and monthly payments of $95.07. Assuming that Jen and Mark both pay off their loans according to the 24-month schedule, how much more will Mark end up paying in interest?
What is $281.68?
100
14. A pawnbroker holds a pawned item as ________ for a loan. a. principal b. credit c. interest d. collateral
What is D. Collateral?
100
9. Credit card billing occurs ________. a. weekly b. annually c. bimonthly d. monthly
What is D. Monthly?
100
Which of the following terms is not correctly matched with its definition? a. Principal: the amount borrowed. b. Terms of the loan: cost of the item if it is not being financed. c. Down payment: the amount of money the buyer gives toward the purchase. d. Repayment schedule: number of months needed to repay the entire loan along with the dollar amount of each payment and the interest rate.
What is B. Terms of the loan?
200
APR stands for ________. a. adjustable percentage rate b. annual positive return c. annual percentage rate d. adjustable policy rider
What is Annual Percentage Rate?
200
How much do you have to save for a down payment on a car if the price of the vehicle is $10,000 and the dealer wants a 15% down payment?
What is $1500.00?
200
A long-term rental agreement
What is a lease?
200
7. Assuming that none of the following have had a previous car accident or have any physical limitations affecting driving ability, who is likely to pay the highest auto insurance rate? a. a mother of two b. a fifty-year-old man c. a senior in high school d. a recent college graduate
What is C. Senior in high school?
200
What is the purpose of a loan contract? a. It is an offer by the lender to sell something at a given price to another person. b. It is a legally binding agreement that explains the charges to be paid by the buyer and the obligations of the seller. c. It is a promise made to the credit bureaus that the lender will protect the buyer from bankruptcy until the loan is paid in full. d. It is a legally binding agreement that guarantees that the buyer will pay the lender in full and on time.
What is B.?
300
A borrower defaults on a loan when he or she ________. a. removes pledged collateral b. reaches the loan's maturity date c. switches from a secured loan to an unsecured loan d. stops making payments
What is D. Stops making Payments?
300
Jameson took 24 months to pay off a credit card balance of $3,000 at an interest rate of 19%. In the end, he paid a total of $3,629.52 to pay off the debt. Jameson has just learned that he could have taken out a personal bank loan with a 5% interest rate instead. With the bank loan terms, Jameson would have made monthly payments of $131.61 for the 24 months. How much would Jameson have saved if he had chosen to use the bank loan?
What is $110.88?
300
Someone who agrees to sign the loan document and repay the loan.
What is Cosigner?
300
When you ________ a car, you pay only for the use of the car for a period of time, not for the value of the car itself. a. take out a loan for b. insure c. lease d. make a down payment on
What is C. lease?
300
If a person has homeowners or renters insurance, it will protect the person a. if she loses her job and cannot pay her rent. b. from having to file for bankruptcy. c. if someone falls in her house and sues her. d. from the bank foreclosing on her home for not making mortgage payments.
What is C?
400
Which of the following types of loans is specifically for students with "exceptional" financial need? a. unsubsidized Stafford loan b. subsidized Stafford loan c. Sallie Mae loan d. Perkins loan
What is B. Subsidized Stafford Loan?
400
Martha borrowed $6,000 to buy a car and she will make 36 monthly payments of $185.81 to repay the loan. How much total interest will he pay over the life of the loan?
What is $689.16?
400
Have no collateral pledged against the loan
What is Unsecured Loan?
400
11. Most credit cards charge interest rates of ________ on balances carried from one month to the next. a. 7% to 12% b. 15% to 22% c. 12% to 15% d. 3% to 7%
What is B. 15% to 22%?
400
If a person does not have renters insurance and her laptop computer is stolen from her apartment, she a. does not have to worry because the landlord has to pay for her loss. b. can still buy renters insurance and make a claim to be reimbursed for the loss of the laptop. c. can file a claim for the loss through her car insurance company. d. will have to replace the laptop computer at her own expense.
What is D?
500
Longer loan periods generally mean ________ payments, but the borrower will pay ________ over the life of the loan. a. higher; more in principal b. lower; less in interest c. higher; more in interest d. lower; more in interest
What is D. Lower; more interest?
500
If the mortgage lender requires a minimum of 5% down payment on a $260,000 house, how much will your down payment be?
What is $13,000.00?
500
The common term for the type of loan people take to purchase a home.
What is Mortgage?
500
T/F: Car loans typically run between one to three years for new cars.
What is FALSE?
500
A disadvantage of paying for a car with a long-term loan is that a. the monthly loan costs are higher than the same loan taken for a shorter time. b. the person cannot take possession of the vehicle until at least half of the loan has been paid. c. toward the end of the loan, it is possible to owe more on the car loan than what the car is worth. d. the loan increases in size and the interest rate on the loan goes up.
What is C?
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