Personal Finance Pt. 1 (Exam 4)

A trust has the purpose of: managing the assets of a person
The CCCS aids families by: setting up a budget for them.
Which of the following is a disadvantage of using credit? (It Is NOT “The use of credit allows for the purchase of goods even when funds are low”)
If you have a problem with your creditor, the best solution is to: solve your problem directly with the creditor.
If you think that your bill is wrong, you should first: (It Is NOT “contact the local credit bureau and inform it of the billing error”)
Which bankruptcy allows a debtor with a regular income to extinguish his or her debts from future earnings or other property over a period of time? Chapter 13
An all-purpose account that provides several services is a(n): asset management account.
Which of the following is a deposit institution? A credit union
Jake Skinner purchases a big screen TV on credit and will repay the loan with one payment at the end of 90 days. What type of credit did Jake use? Single lump sum credit
Based on the following information, what amount would be subtracted from the bank balance side of a checking account reconciliation? Service charge $12, Outstanding checks $145, Interest $3.50, Deposit in transit $80 (It Is NOT “$157”)
In a Chapter 7 bankruptcy, a debtor: is required to draw up a petition listing all assets and liabilities.
Debt-to-equity ratio is: calculated by dividing total liabilities by net worth.
If creditors add finance charges after subtracting payments made during the billing period, this is called the: adjusted balance method.
An account at a commercial bank designed for people who want to earn a higher savings rate is a(n) __________ account. (It Is NOT “regular savings account”)
Which of the following is NOT a source that provides data to credit bureaus? Internal Revenue Service
A certificate of deposit usually has: limited liquidity.
If creditors give you no credit for payments made during the billing period, this is called the: previous balance method.
If you borrow $100 at 10 percent simple annual interest and repay it in one lump sum at the end of one year, you will have to pay: $110.
If your monthly net (after-tax) income is $1,500, what should be your maximum amount spent on credit payments? $300
Kathy purchased a $2,000 digital TV from Young’s Appliances. She will make 12 equal payments over the next year to pay for it. She is using: closed-end credit.

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