Five C's
Definition of Character
A lender will check how long you have lived at your current house, how long you have had your job, and a good record of paying your bills in full and on time.
Who pays taxes to the federal government? (One example)
Businesses, workers, and employers.
How often is the W-4 filled out?
It is filled out when you personal situation changes.
Why do people start a business? (Two examples)
To make money, charitable, flexible hours, etc.
What is a deposit?
When you put money into an account
Definition of Capacity
Lenders will evaluate your debt-to-income ratio, which is, how much you owe compared to how much you earn.
What do you get for paying Federal INcome taxes? (Two examples)
Roads, law enforcement, schools, bridges, etc.
Who fills out the W-4?
The employee at the start of every new job.
What is the biggest risk in business?
Losing money
What is an account?
A place where your money is kept
Definition of Capital
A lender will look at your net worth with is the value of you assets minus you liabilities.
What does the FICA fund?
A).Medicare and Social Security
B).Government and Military
C.)Transportation and Education
A
What does the W-4 allow employers to do?
To know how much federal tax to take out
What are dividends?
When a company makes a profit, they sometimes pay the owners of stock a dividend
What is a Penalty?
Fees
Definition of Collateral
A lender will look at your assets that they can take to use as the money you can not pay off.
Provides health benefits for age 65+
What will the W-4 say?
A). Where you live
B).Personal Allowance
C).Relationship status
D).All of the above
D
Where do you sell/buy stock? (One example)
On exchange, New York Stock Exchange, etc.
What is overdraft protection?
It makes sure you don't use money you don't have
Definition of Condition
A lender will look at what outside problems will effect you from paying back the loan.
What does OASDI stand for?
A).Organization And Survivers for Disability and Injured
B). Organization And Stability for Diseased and Injured
C). Old-Age Survivors and Disability Insurance
D).Old-Age Stability and Disease Insurance
C
What is the W-4?
Employees withholding allowance certificate.
When a company first sells stock what is it called?
A).Official Sell
B).IPO: Inicial public offering
C). SEB: Stock Exchange Bussiness
D).CSBE: Certificate to Sell Bonds and Exchange Stock
B
What is a posting order?
The order in which deposits and withdrawals are processed