money in review- chapter 4- banking and finance

cost of borrowing momey on an annual basis; takes into account the interest rate and other related fees on a loan annual percentage rate
a decrease or loss in value depreciation
a detailed report of an individual’s credit history credit report
time frame that a loan agreement is in force, and before or at the end of which the loan should either be repaid or renegotiated for another term loan term
type of card issued by a bank that allows user to finance a purchase credit card
a measure of an individual’s credit risk; calculated from a credit report using a standardized formula credit score
a yearly fee that’s charged by the credit card company for the convenience of the credit card annual fee
preferred method of debt repayment; includes a list of all debts organized from smallest to largest balance; minimum payments are made to all debts except the smallest, which it attacked with the largest possible payments debt snowball
you must establish credit in order to buy a house. false
if you are a victim of identify theft, you are only responsible for paying back half false
paying with cash for all purchases is a factor in determining a FICO score false
quit borrowing money is a good way to get out of debt true
you can not rent a car with a debit card false
why is an adjustable rate mortgage a bad idea? because you’re gambling on how much your bill is going to be
explain why financing a car is a bad idea it’s going to lose its value the minute you drive it off the lot, you’re losing money this way, and it’s more expensive
describe the negative consequences on debt. why effect can debt have on your future? you’re living paycheck to paycheck, you’re not able to build wrath and you’re alway stressed on rather you’re going to be able to pay your bills
what are some things you can do to protect your personal information? don’t give out your social security card, shred your personal information before you throw it away, and have strong passwords so no one can hack your things
explain how the debt snowball works putting your debt into a smallest to largest chart and paying off the lowest debt to the highest until they are a payed off

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