Banking1
An account held at a bank or credit union into which account owners deposit funds.
What is a Checking Account
Select the correct answer for the percent of adults who are unbanked based on race/ethnicity:
4% White 14% Black 11% Hispanic
11% White 14% Black 4% Hispanic
14% White 11% Black 4% Hispanic
4% White 14% Black 11% Hispanic
Debit cards are the same as ATM cards.
False - Debit cards differ from ATM cards in that they can be used to make purchases. Although an ATM card is a type of debit card, it is used to access a computer to get cash, make deposits or transfer money between accounts and is not used to make purchases.
APR stands for "annual percentage rate“ and is the cost of credit on an annual basis.
True - APR describes the cost of credit on an annual basis.
A credit-card lender often requires collateral for a credit-card account because it is an unsecured loan and can be quite risky.
False - An unsecured loan is not backed by collateral, and is quite risky for the lender. The term "unsecured" means that there is nothing of value the creditor can take if the loan is not repaid.
A "pay now" point-of-sale transaction card that replaces cash and checks.
What is debit card
Adults with at least a bachelor’s degree are more likely to be fully banked than adults with a high school diploma or less.
TRUE -
90% with a bachelor’s degree or more are fully banked.
79% with some college or an associate degree are fully banked.
67% with a high school diploma or less are fully banked
If a consumer does not make payments on a loan for a vehicle, the vehicle is repossessed and sold by the creditor, this eliminating the consumer's debt.
False - The debt is eliminated only if the vehicle sells for the amount of the loan. If the vehicle is sold for less than what is owed, the consumer is responsible for the difference and still has a debt to pay.
Any person can secure a debit card.
False - A person must have a checking or savings account to secure and use a debit card.
It is more advantageous to use a debit card than a credit card for purchases
False - Both debit cards and credit cards have advantages according to personal decisions and specific situations
A printed form directing a bank to withdraw money from an account and pay it to another account.
What is the range of credit score?
300 to 850
If you want an increase in the credit limit on your credit card and you are under age 21 and have a credit card with a cosigner, your increase will be approved if you have made your payments on time for at least 6 consecutive months.
False - If you are under age 21 and have a card with a cosigner and want an increase in the credit limit, your cosigner must agree in writing to the increase.
When a car dealership has several promotional offers and incentive programs, the best deal for the buyer will be the one that offers a zero-percent interest rate because there will be no interest charges to pay.
False - Promotional offers and incentive programs can be quite different, and each should be considered individually to determine which is best. A loan with a zero-percent interest rate is not always the best deal.
The sum total of all payments paid on a car loan is equal to the purchase price of the car.
False - The total amount of payments is the purchase price of the car plus interest and finance changes.
Occurs when an account holder does not have enough money to cover transactions from checks, ATM withdrawals, debit card purchases, or electronic payments
What is overdraft
Cite one major credit bureau
Equifax, Experian, and TransUnion
If a credit card is lost or stolen, the maximum amount a cardholder must pay is $50.
True - The Truth in Lending Act is a federal law that protects cardholders against unauthorized use of their credit cards. If a card is lost or stolen, the maximum amount a cardholder must pay is $50.
The incentive considered most attractive by college students when choosing a credit card is the special store discounts offered with each card.
False - The top incentive for college students when choosing a credit card is the reward program the card offers. (Special store discounts = 8 percent; rewards program = 28 percent)
"Caveat emptor" is a Latin phrase that means the consumer is always right.
False - This saying means "buyer beware" and is meant to serve as a warning to consumers to make careful purchasing decisions.
Cites at least 3 types of credit
Service credit (utilities), Installment credit, Charge card (a type of credit card), Credit card, Personal loan, Auto Loan, Home loan (mortgage), student loan
How to improve your credit score?
Pay your bills on time
Get a co-signer
Get a secured credit card
Become an authorized user
Credit-builder loan
Keep your credit authorization law (30%)
Do not close old credits accounts
The interest rates on car loans are usually lower than on unsecured loans because there is less risk to the lender.
True - A car loan is secured by the car. The car can be repossessed if terms of the contract are not kept.
If you have authorized the credit card company to allow transactions that will take you over your credit limit, the credit card company can impose only one fee per billing cycle
True - If you opt-in to allowing transactions that take you over your credit limit, your credit card company can impose only one fee per billing cycle.
By law, lenders who make car loans must charge all consumers the same fixed interest rate on contracts issued on the same day.
False - Interest rates charged on car contracts will vary from one consumer to another, based on his or her credit report and credit history.