Credit card
Something that credit card commercials don't show you is .
A. People making payments for months or years on those credit card purchases
B. How much your credit score will grow right away
C. How happy your parents will be that they don't have to lend you cash anymore
D. How great your life will be with payment
A. People making payments for months or years on those credit card purchases
When a homeowner takes out a home equity line of credit (HELOC), that loan can only be used for home repairs and renovations.
A. True
B. False
B. False
Banks and lenders use credit scores to determine . . . A. The likelihood that someone is able to repay debt
B. A person's financial responsibility
C. How much collateral someone has available to put up for a loan
D. How successful someone is
A. The likelihood that someone is able to repay debt
5. When you finance a new car, you will end up paying more than the sticker price.
A. True
B. False
A. True
While it may not always appear so, the majority of Americans live paycheck to paycheck.
A. False
B. True
B. True
Making purchases with a credit card means that you're borrowing money with interest, ___________ and pay much higher interest rates.
A. Young people B. Rich people C. Old people D. College graduates
A. Young people
___________require the borrower to put up collateral for the loan.
A. Unsecured loans B. Interest rates
C. Revolving credit D. Secured loans
D. Secured loans
Which of the following is part of the formula that determines a person's FICO score?
A. Their income level during a one year period
B. The dollar amount in their savings funds
C. The percent of income that they invest into mutual funds
D. Their history of payments made to lender
D. Their history of payments made to lender
Leasing a car is a method of financing where someone
A. Makes monthly payments on but does not own the vehicle
B. Is paying off two or more vehicles at one time
C. Does not have to pay any taxes on the vehicle for the first six months
D. Never pays any interest or fee
A. Makes monthly payments on but does not own the vehicle
Your greatest tool to building wealth is .
A. Tax cuts
B. Single stocks
C. Your income
D. Your credit score
C. Your income
There are certain things, like renting a car or booking a hotel room, that you cannot do without having a credit card.
B. True
A. False
A. False
Loans that directly help you advance in life, such as student loans, are acceptable debts.
A. True
B. False
B. False
Once you turn 18, you should regularly check your credit report . . .
A. For errors or signs of identity fraud
B. To make a plan for improving your credit score
C. To keep an eye on your credit score
D. Only if you have a credit card
A. For errors or signs of identity fraud
Car lease agreements come with a stipulation that you must pay a penalty if you .
A. Go over the pre-established mileage cap
C. Don't park under a garage
B. Drive the car out of state
D. Don't wash the car before returning it
A. Go over the pre-established mileage cap
What is The Second Foundation?
A. Get out and stay out of debt
B. Save a $500 emergency fund.
C. Pay cash for your car.
D. Build wealth and give.
A. Get out and stay out of debt
Credit card companies make the most profit from .
A. Incentive programs with banks
B. Partnering with companies to offer rewards to customers
C. Government tax breaks
D. Charging interest to customers who only pay part of their monthly debt
D. Charging interest to customers who only pay part of their monthly debt
Predatory lenders get their negative reputation from . . A. Limiting the amount of time a borrower has to use a loan
B. Taking advantage of people during the Great Depression
C. Charging high fees for loans and targeting desperate people
D. Discreetly selling personal bank information
C. Charging high fees for loans and targeting desperate people
A credit score is an indicator of how well someone pays off their debt, not how well they handle money.
A. True B. False
A. True
The smartest way to buy a car is to
A. Lease it
B. Finance it but pay the debt as quickly as you can
C. Take out a personal loan for it
D. Pay for it in cash
D. Pay for it in cash
4. Which is an example of an appreciating asset?
A. A computer used for business purposes
B. A new car purchased within the past 6 months
C. A piece of farming equipment
D. A home
D. A home
Credit cards that offer flashy rewards like airline miles often . . .
A. Charge a high annual fee
B. Don't include protection against fraud
C. Can't be used for personal expenses
D. Have no interest fees
A. Charge a high annual fee
When you buy with credit, you typically spend more than you would with cash or a debit card.
A. True B. False
A. True
When looking over your credit report, it's important to make sure . . .
A. No lines of credit have been opened under your name without your knowledge
B. Your credit score is over 700
C. At least five businesses have requested your credit report
D. The information listed is over 10 years old
A. No lines of credit have been opened under your name without your knowledge
The is the total amount of the car loan, plus taxes and fees.
A. Principal
B. Value
C. Interest
D. Term
A. Principal
The debt snowball method involves . . .
A. Waiting until the winter months to begin paying off debt
B. Paying off debts from largest to smallest
C. Pooling together money from other people to pay off your debt
D. Paying off debts from smallest to largest
D. Paying off debts from smallest to largest
Credit card companies charge stores a 2–3% fee for every purchase made with credit cards. This is called a(n) . . .
A. Merchant fee
B. Cash advance fee
C. Annual fee
D. Over-the-limit fee
A. Merchant fee
What is the danger of putting up collateral for a loan?
You could lose the loan collateral if you fail to make the payment on time.
Credit isn't a wealth-building tool, it's a business that makes money for . . .
A. Individuals who use credit cards
B. Stock market investors, tax agencies, and financial advisors
C. Local businesses and homebuilders
D. Credit card companies, banks, and lenders
D. Credit card companies, banks, and lenders
A car is a depreciating asset.
A. False
B. True
B. True
How you spend and give your money . . .
A. Can't be changed, even if you try
B. Is the most important thing in life
C. Is a reflection of your personal values
D. Doesn't matter until you're in your 40s
C. Is a reflection of your personal values