Interest
If your interest rate increased from 5% to 8%, what would that do to your monthly payments?
cause them to increase.
Why do banks ask for credit reports when giving out loans.
It shows a persons complete financial history and assesses their likelihood of repaying a loan.
What is life insurance?
Insurance that gives remaining family monetary payment in the case that someone dies
You suspect that you have lost your credit/debit card. What do you do?
Call your bank and request a new one. Ask them to turn the old one off.
Which of the following is NOT a skill to have in the workplace?
Time management, dependability, punctuality, math skills
math skills
If a credit card advertises “0% APR for the first 12 months!” What does that mean for the customer?
The customer will pay $0 in interest for the first year they have the card.
What is the difference between installment and revolving credit?
installment credit is payment on a lump sum amount (loans) while revolving credit is renewed after a successful payment (credit cards)
If our premium is high, our deductible is __________; if our premium is low, our deductible is __________.
LOW // HIGH
When applying for a new job, it is good practice to do what to our social media accounts?
Go through to double check them for any unwanted information
Which type of interest do we want on investments, compound or simple? Why?
compound because it causes the balance of the investment to grow faster.
Out of revolving and installment credit, which has the highest interest rates? Which has the highest impact on credit scores?
revolving // revolving
When applying for insurance, customers want more/less coverage and higher/lower premiums. (highlight each correct answer.)
MORE // LOWER
Which investment scam focuses on recruiting more and more people to sell a product?
Ponzi Scheme; get rich quick scheme; pyramid scheme.
What is the Fair Housing Act?
it provides affordable housing to all regardless of race, religion, sexual identity, etc.
Why must banks give different interest rates to different customers?
Because some people are more likely to repay their loans than others. Low interest rates mean that the customer will likely repay the loan. High interest rates mean that the customer might default.
True or False: the best way to establish a credit history is to apply for a credit card.
True: credit cards are easier to get than loans, and they are a great way to start building your credit score.
Rank the following in order from most to least coverage possible: liability automobile insurance, collision automobile insurance, comprehensive automobile insurance.
Comprehensive // Collision // Liability
The following scenario is an example of what type of ID theft: Adam receives an email from a card company claiming that he has won a $200 gift card to a store of his choosing. All he has to do is click on the link and enter his address to have it shipped to his home.
Phishing
You favorite sandwich shop accidentally put mustard on your sandwich instead of mayonnaise. What is the best way to file a complaint?
Go to the restaurant directly and tell an employee.
Looking at the amortization report, how are the first payments different from the last payments?
The customer pays off more interest in the beginning and more principal in the end.
What has the highest impact on your credit score? What does this mean?
Payment History // paying off all balances on all credit cards ON TIME.
Which is MOST LIKELY covered by homeowners insurance: a fire or normal wear and tear. Why?
A fire because fires are unforeseen, often inevitable occurrences that can leave a family in need if they occur.
What are the best ways to avoid the 5 types of ID theft?
1. Shred important documents
2. Don't reveal personal information
3. Use secured networks
4. Don't open attachments on emails.
Looking at the chart on the board, what is more likely to happen the less education you have?
The higher your unemployment rate.