Credit
No discrimination in credit transactions
What is Equal Credit Opportunity Act.
Money borrowed from a lender that must be repaid according to agreed-upon terms.
What is a Loan
Possibility that an unexpected event will cause injury, damage, financial loss, or another negative result.
What is Risk
This is the total amount an employee earns before taxes and other deductions are removed.
What is gross pay
This spending plan shows how a person expects to use income for expenses, savings, and debt payments.
What is a budget
Paying bills on time, keep balances low, avoid opening too many accounts, keep older accounts open when possible, and use credit when it fits your budget.
What is Building and Maintaining Good Credit.
The cost of borrowing money.
What is Interest
What is Risk Avoidance.
This is the amount of money an employee receives after taxes, insurance, and other deductions are subtracted.
What is net pay
Rent, car payments, and insurance premiums are examples of expenses that usually remain the same each month.
What is fixed expenses
Repayment plan for regular income debtors
What is Chapter 13
Name the financing method that consist of high APR, fees and possibly long-term debt.
What is a Credit Card
Accepting responsibility for a possible loss.
What is Risk Retention.
A customer purchases a television for $650 in an area with a 6% sales-tax rate. This is the total amount of sales tax charged.
What is $39
A savings account is used to pay for unexpected expenses such as a car repair, medical bill, or loss of income.
What is an emergency fund
Two loans have the same principal and APR, but one has a five-year repayment term and the other has a three-year term. The five-year loan will usually have this advantage and this disadvantage.
What is a lower monthly payment and a higher total interest cost
The financing method which consists of fixed payments and repayment date
What is a personal loan.
It can be paid monthly, quarterly, twice a year, and annually to maintain insurance coverage.
What is Premium
An employee earns $1,600 in gross pay. The paycheck includes $192 in federal tax, $80 in state tax, $99.20 in Social Security tax, $23.20 in Medicare tax, and $75 for health insurance. This is the employee’s net pay.
What is $1,130.60
A household earns $4,200 per month but spends $4,450. To create a balanced budget, the household must reduce expenses or increase income by at least this amount.
What is $250
A borrower receives a lower interest rate because the loan is backed by an asset that the lender may take if the borrower defaults.
What is a secured loan
This extends the repayment period. Increase total interest. Keeps the borrower in debt longer. Reduces money available for other goals.
What is Minimum Payment
Produces a lower premium but must be prepared to pay more after a loss.
What is Deductible.
A taxpayer earns $52,000 during the year and claims $14,000 in allowable deductions. This is the amount of income used to calculate the taxpayer’s income tax.
What is $38,000
Maria earns $3,600 in monthly net income and wants to save 15% of it. This is the amount she should include in her monthly budget for savings.
What is $540