Credit General
Student loans are installment credit. What type of credit is a credit card?
Revolving
What's the difference between a debit card and an ATM card?
ATM card only for taking cash at ATM - not able to use for purchases
What is the name of the most common credit score for individuals?
FICO
Which word best matches stockholder?
lender
owner
borrower
seller
owner
Which is the likeliest key to successful long-term investing?
guaranteed returns
steady habits
steady inflation
age
steady habits
Which method is most common for determining minimum payments? 3 words
Average daily balance
Mastercard and Visa logos are only seen on credit cards. True or False
False
When your credit is checked for the purpose of extending credit, this is called a ________ _________, and it affects your credit score.
hard inquiry
What is the most signficant long-term factor in stock prices?
long-term performance/profitability of companies
What is tax-deferral?
legally paying taxes later
Two advantages to using credit cards:
safety, warranties, tracking, points, convenience...more?
Department store cards (Kohl's, Old Navy) are always credit or debit cards?
credit
What are two ways a higher credit score can benefit a consumer?
lower interest, car insurance
What are the two principal ways to earn money through stocks?
Buy/sell/hold = trading
Dividends
3 words: ________ _______ ____________
A method of managing investment risk.
dollar cost averaging
What indicators show that someone is likely ready to use credit cards responsibly?
budget, EF, spending under control, goals, steady income, understanding of interest
In general, regular debit card activity (purchases, cash withdrawals) affects what % of your credit score?
0
Which is a valid FICO score?
79
7.9
790
790
A single stock to a mutual fund is like:
rain to snow
a bond to a certificate of deposit
an apple to a fruit basket
a dollar to a bitcoin
an apple to a fruit basket
The higher the potential for return, the __________ the risk.
higher
Two risks/downsides to using credit cards:
overspending, interest, gimmicks, quick hit to credit score
Which has a larger marketshare on debit cards, VISA or Mastercard?
VISA
The term for how much of your available credit you are using:
available rate
utilization rate
default rate
limit rate
utilization rate
A _________ _________ is a list of stocks that tracks the performance of a stock market or a part of it.
stock index
This type of individual retirement account allows for penalty-free withdrawals (of principal) at any time.
ROTH IRA
NOTE: other items...ready to invest? what is a bond? SEC, credit score components, depreciating asset, dividends, S&P 500, 401k, SEP, tax-exempt