SUPA Unit #2

____ is a reason for owning your own home.

The purpose of a credit report is to evaluate the kind of risk you pose to the lender

The majority of each monthly payment at the beginning of the loan goes to pay

The largest investment you will make in your lifetime will probably be the purchase of an auto

The most important rule for establishing a savings plan is to

All of the following are useful ways to build a strong credit rating except

Credit unions are

Credit union members are expected to have some common bond

Commercial banks are insured by the

Individuals with better credit ratings usually can secure higher credit limits

A closed-end automobile lease is the most popular type of lease (walk away at the end)

If interest rates and monthly mortgage payments will not change over the life of your mortgage it is:

There is a penalty for early withdrawal of funds from CDs

Open account credit is characterized by

The ____ is really a second mortgage on your home

When an S&L is a mutual association, it means that it is owned by the

If you write a check for an amount greater than your account balance, the result will be

credit limit refers to the max. amount the cardholder can owe the issuer at any point in time.

As a percent of take-home pay, monthly consumer credit payments should not exceed

People with very poor credit ratings can still get ____ credit cards.

The highest average cost type of housing to purchase would be a

A credit card can provide an interest-free loan if you

A credit card can provide an interest-free loan if you

The greatest fixed cost involved with owning an auto is usually the monthly loan payments.

A(n) ____ is not an interest-bearing account (doesn't provide high interest rates)

The Annual Percentage Yield is the same as the

Money Market Deposit Accounts

A debt safety ratio of 25% might be a signal of financial trouble ahead.

____ are not a type of open account credit.

Bank credit cards represent the most common kind of open account credit

Using credit is the ideal way to provide for financial emergencies

The financing rate on the car you are leasing is called the

The down payment on the car you are leasing is called the

Christina works at a company that offers direct deposit of her paycheck. This service is called

A debt safety ratio of 5% would generally be a signal of financial trouble ahead.

Factors typically influencing the choice of where to maintain a checking account are

One could expect to earn a higher rate of interest on a certificate of deposit than on a checking account.

Lender uses a credit application to determine if the borrower has the ____ to handle the debt.

The following is(are) major source(s) of home mortgages

Gasoline is a variable cost of automobile ownership

An automobile is a personal use asset for most buyers

The seller of the house typically pays the

All of the following are key items lenders look at in granting credit except

Capitalized cost on an auto lease is the same as the price of the car

The first choice in housing in the United States is

lenders do not want mortgage payments to exceed ____ percent of your gross monthly income

A fee charged as a condition of a mortgage loan that lowers the interest rate is called

____ does not represent a line of credit

Automobiles tend to decrease in value over time

Bank credit card purchases always begin accruing interest charges immediately

Lower interest rates on certificates of deposit are associated with

____ is an ongoing cost of home ownership.

FDIC covers stocks, bonds, and mutual funds purchased at banks.

A financial advantage of renting compared to purchasing housing is

Saving accounts are sometimes referred to as demand deposits

Nearly all credit cards have annual fees

Variable auto ownership costs are most dependent on

Interest rates on credit cards tend to be lower than most other forms of consumer credit

____ could be deducted on your Federal income taxes

The loss of value in a car over time is called

The price of the car you are leasing is called the

____ could be deducted on your Federal income taxes