Personal finance part two study guide

Which one of the following statements is true? d. all of the above (A. you can overdraw your account with your ATM card.B. ATM cards can be used in all stores to buy things.C. It doesn’t matter what machine you use when you want to draw money out using your ATM card.)
If you deposit a check into your account and the teller tells you it is on hold for five days, can you still spend the money today or tomorrow? B. NO
If you use mobile payment and lose your phone, you should not: B. Get a new phone and keep using the same app.
Which of the following statements are False? A. A debit card never has a MasterCard or Visa logo on it.
You are just starting out building your credit. what is the easiest way to ruin your credit with your checking account? C. you overdraw your account many times and the bank closes your account.
Is it OK to use “whiteout” on a check? False/ No
Some financial institutions like to charge you for check , check registries, ATM fees and change sorting fees. True/ yes
Which of the following statements about an ATM card is false? An ATM will always give you money no matter how much money you have in your banking account.
Why would a smart person keep at least $100 balance in their checking accounts at all times? Which answer is the MOST correct? You never know when unexpected fees or expenses will hit your checking account. And you can at times forget to write down a payment you make with your checking account or debit/ ATM card. so, you’re less likely to overdraw your account if you keep $100 in there at all times.
What is it called when you write a check for more money than you have in your account? A. Overdraw
When you pay with a debit or ATM card, you are not borrowing money. You are spending your own money. When you pay with a credit card, you are always borrowing money True/ Yes
Why is it stupid to trust an ATM machine to tell you your correct balance? The balance on the machine may not include payments you have made by check or online that need to be deducted from your balance.
Online bill pay is much easier and cheaper than writing checks to pay your bills. True/ yes
The best way to get an accurate checking account balance is to call your bank or credit union directly True/yes
what should you do when you open a checking account? D. both a and c(A. open a savings account and link it to your banking account.C. Try to sign up for true overdraft protection even though you have to pay for it)
when you fill out a check for a certain amount of money and then sign the check, you are saying you might have that money in your account? True, yes
You dont keep a $100 balance in your checking account and you overdraw your account a few times. Which of these is the most likely result? D. Your financial institution will charge you an “overdraft fee” every time you overdraw your account, and may tell the credit bureaus you have overdrawn you account. The credit bureaus might then lower your credit rating. If the credit bureaus lower your credit rating, you get charged more on interest for loans and credit cards, and you pay bigger deposits for utilities.
You have $200 in your account. You are very reposible. what is the maximum amount of money you should spend? D. 100
Why do banks put a “hold” on a check? C. Because the check is large and the bank wants to make sure it gets the money before releasing it to oyu.
you should plan on spending two thirds of your paycheck on rent and household expenses. B. false (1/3)
If you have credit problems you are NOT going to pay more in rent or security deposits. B.False
What do you call the person or company that is renting an apartment or house to you? A. landlord
Landlords have rights, too! which of the following is NOT a right of the landlords A. a landlord can keep all of your security deposit if you do not take out the garbage one day.
“the main job of a rental agent is to help you make the right decision, even if that means not renting an apartment from the agent.” Is this statement true? read the choices carefully and choose carefully and choose the one right answer False. Most rental agents are honest. But there job is to rent you their apartment., not to send you to another apartment building.
Which answer is correct ? subletting without permission normally means you have defaulted on your agreement and may have to pay heavy penalties.
Which of these choices is the worst mistake to make when you are renting or leasing an apartment? C. you let your emotions rule your decision
When deciding on and apartment what should you do first? D. develop your budget and only look at the places that will fall within your budget.
Are you renting and leasing an apartment the same thing? A. False, renting usually means you have a month to month agreement. leasing usually means you have a much longer agreement,
An eviction notice usually means you have to move out. BUT you do not have to move out until your rental agreement expires. B. False
Which of the following are NOT responsible for in a big apartment building? Upkeep of the outside of the building, including landscaping and painting the front door.
The landlord is NOT responible of which one of these items. C. The landlord must keep the temperature in the home at a reasonable level.
Your renters insurance deductible is $500. While you were at work someone broke into your home and stole your brand new flat screen TV which cost $1,700. Your insurance company will pay you the full $1,700 B.False
What is the maximum you should spend on housing if you gross income is $1,800 per month? A. $600
A ” rent to own” company is the best place to go to furnish your apartment because it is cheap way to get the expensive goodies you have always wanted. B.False
When buying a home, what is one of the first items you need to decide? D. what your budget is and how much house you can afford.
You cant save any money because you need every dime just to pay your mortgage and bills. what answer describes your situation? D. house pour
What statement below is the most correct/ A. car loans use cars as collateral. If you do not pay your loans the finance company can take the car back
In order to buy a house oyu are always required to put at least 25% down to get a mortgage. A. True.
All mortgage companies are willing to loan anyone money regardless of credit scores B. False
Which payment guideline would you follow if you were deciding to get a mortgage? C. a person who works at a mortgage company tells you their payment guideline book says you can afford to pay 45% of your gross monthly pay on a mortgage.
If you have the extra money on hand for a down payment on a house it makes more sense to: C. Buy a house because you plan on staying in the area for more that five years
Most peoples should not spend more than 25% of their gross income on their monthly mortgage. B.False
Mortgage brokers are the ones who bring the home buyers and lenders together B. Yes, and the brokers do not assume any risk
Which question or questions should you ask yourself when determining how much money you can afford to spend or mortgage? D. All of the above. (A. Does the company that provided me the payment guidelines make more money you can afford to spend on a mortgage b. is the payment guideline form a source that does not make money on mortgages? C. have i been really honest with myself in using any payment guidelines?
If you are renting an apartment with a roommates and all of the utilities are in your roommates name why would your payments not help or hurt your credit rating? A. Because unless my name is on the account the credit bureaus do not recognize the payments.
Good credit is the key to financial freedom? A. true
credit is an arrangement for you to pay a later date. it is one way to determine trustworthiness A. true
Good credit gives you options. Bad credit takes away your options. Choose the one correct answer. A. you have good credit. You can choose the credit card with the lowest interest rate.
what is the best explanation of debt to income ratio? A. the ratio of how money individuals owe in relation to how much money they make.
You mailed in your credit card payment late but you wrote a check darted it for January 13th even though the due date is the 15th. Which statement is true? C. the payment is still late because the payment was not received by the due date.
With bad credit you are more dependent on others. Which statement is correct? C. bad credit means you may have to live at home with your parents for a long time. it also means you may have trouble getting a job, and trouble getting a loan. And even if you get a loan, you will pay a lot more in interest.
Which statement gives the best definition of financial credit? A. Financial credit is an arrangement for you to pay at a later date. Loans and credit cards are forms of credit. Financial credit is also a way that lenders, businesses, and potential employers determine whether someone is trustworthy
Which statement best illustrates how good credit can give you power? B. having good credit can lead to a better paying job and better interest rates on a loan for a car a home etc.
You add your sister to your cell phone plan and she runs up your bill. Whose credit will be hurt if the bill is not paid? B. mine- i am always responsible for my accounts
After obtaining bad credit there is no easy fix to get good credit other than building back up through the years of paying your bills on time every moth and decreasing your debt to income ratio A. True
many companies always look out for the consumer and give them repayment plans that can be paid off in the shortest about of time possible . B.False
Which of these people has “bad credit” Tamara’s parents co- signed a car loan for her new wheels. Her monthly payment is due by the 15th of each month. So far she has made the payment each month. But on three months, she sent her payment after the due date on the coupon because she has not yet received her bi-weekly paycheck from her part time job. On more than one occasion she was more than 30 days late.
How long you’ve had an account. like a credit or cell phone account- has nothing to do with determining your credit score. B. False
You own credit bureau you’re trying to decide which person is the better credit risk. Which statement would you choose as the better credit risk? C. ted is just about to pay off his 36 month loan on his use RAV4 He’s made 35 monthly payments on time to his credit union and is sending the 35th payment in one time, too
If you mail in your credit card payment on the day it is due, it is not late B. False
which statement is true B. your credit score is based on your payment history.
What is the best way to hurt your credit rating? D. Make all your payments early your credit cars. it is okat to pay them late
The more times your credit is check when applying for credit cards or loans will help build your credit rating? D. false

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