Personal Finance

Discuss your trade-in vehicle immediately to get the best deal All of the following are actions that should help reduce the cost of buying a new car, except
Location of the home All of the following are factors you should consider when choosing a specific home. Which is most important
Credit Union Of the following possible sources of credit, which one typically has the lowest rates?
The smallest amount you can pay and remain a borrower in good standing The minimum monthly payment on a credit card is
You can pay your credit card bills in full each period All of the following are warning signs of debt problems, except
Take the money out of savings–it is cheaper You are headed to the mountains for some climbing this summer and you need some gear. The local mountaineering shop is offering 6% financing on all purchases before the end of the month. Your saving account is currently paying 5%. You have sufficient savings to pay for the gear and still meet you liquidity needs. You are in a marginal tax bracket 28%. Which of the following is true?
Are in default Suppose you borrowed the money you needed to purchase an automobile and failed to make a scheduled payment by the due date. Technically you
All of the above If you are considering purchasing a used car you should
Home ownership Which of the following housing alternatives puts the responsibility for maintenance and repairs on the occupant
Both A and C are correct You are considering building a new deck on your home, what factors should you consider when deciding whether to borrow the money or take the money out of your savings account?
21 to 25-day Most credit cards have a ________ grace period from the date of the bill to make payments
The finance charge that accrues on the account if not paid off in full each month Which of the following is a disadvantage of credit cards
All of the above Payday lenders
Higher credit scores are associated with lower APRs Which of the following statements regarding the risk-return relationship is accurate
APR A person looking to payoff their debt in the fastest time possible will prioritize paying off the debt with the highest
Balloon loan A loan that is paid back in a single lump sum payment at the due date of the loan is commonly called
They are characterized by low returns Which of the following characterizations apply to liquid assets
Liquid assets Cash and investments that can easily converted into cash are termed
Can cost you quite a bit when you get a mortgage loan A low FICO score
Capacity Consider the “Five Cs of Credit”. The category that considers your current income level and current borrowing level is
All of the above Getting a credit card while a college student is an excellent idea because
Tax deductibility of interest and lower interest rates Home equity/second mortgage loans have two important advantages over most other types of loans. They are
The payment amount would increase (other things held constant) Which of the following statements would most correctly complete the following sentence: As the interest rate on a loan increases:
APR on the unpaid balance The choice of a credit card is a matter of personal credit card philosophy. If you are a credit use, the most important decision factor is the card’s
$750 You are considering a home equity loan. Your marginal tax bracket is 25%. You want to borrow $30,000 and are quoted on APR of 10%. How much money would you save in taxes each year if you use the tax-deductible home equity loan?
Provide collateral What strategy could you use to reduce the possible APR on a loan?
Keep you social security card on you at all times so you know it is secure Which of the following is NOT a way to reduce your risk of identity theft?
You begin paying interest immediately When you withdraw cash from ATM using your credit card
$28.16 On Oct 1st, Joe charged $900 to his credit card, on the 10th he charged another 1300 to his card and on the 15th he charged 100. His credit card charges him an annual APR of 18% compounded monthly. Using the Average Daily Balance Method, the finance charge for the month is closest to
Your student loans and other debts are eliminated A Chapter 13 personal bankruptcy is characterized by all of the following except
A payday loan company Which of the following will likely provide the most expensive loans
They allow the consumer the ability to rent cars and make online reservations Which of the following is an advantage of credit cards
Disagreements about money are good predictors for divorce Why is it important for married couples to understand each other’s financial values
Average daily balance Which method sums the outstanding balances owed each day during the billing period and dives the number by days in the period?
The APR Which of the following are not important to convenience users of credit cards?
Letting the saver manage the budget Which of the following is not a common cause of tension with couples related to money?
Installment An______loan calls for the repayment of both the interest and the principal at regular intervals and is commonly referred to as loan amortization
Cashier’s check Suppose that you go to a bank at which you have no account, give the bank cash, and in return obtain a check drawn against that bank which you will pay to someone else. This is called a
All of above Which of the following is not a common way identity theft can occur?
Cancel all your credit cards One of your friends is asking for advice. Which one is unwise?
Certificate of deposit A savings alternative that pays a fixed rate of interest while keeping your funds on deposit for a contracted period of time that can range from 30 days to several years is called
Emails from companies about promotional offers and sales Which of the following is not a red flag of a phishing scam
Insurance All of the below are included in a lease payment, except
Increase your PITI When buying a home, having a large down payment can do all of the following except
Greater flexibility over remodeling and decorating decisions All of the following are advantage of renting versus buying a home except
Take out the largest mortgage you can get approved for When following smart buying to purchase a home you should NOT
It’s the only way I can afford the vehicle that I want Suppose that you were thinking about leasing a new vehicle. Which of the following should NOT be an important consideration regarding a decision to lease vs. buy
PMI You are a newlywed, and you and your spouse have just found your dream home. Problem is, you do not have 20% for a down payment on the house. You will probably need to obtain
$4,400 You are considering obtaining a mortgage of $220,000. A lower APR is available, but you must pay 2 points to buy the rate down. How much must you pay in dollars?
Homeowners insurance All of the following are examples off one-time costs associated with purchasing a home, except:

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