One example of using credit responsibly is:

Charging an expensive item that is on sale today and you get paid soon

What is an acceptable way for people to lower the cost of their automobile insurance?

Increase the amount of the deductible

Credit card transactions are considered a form of borrowing because:

Someone else's money is being used in with promise of repayment

Why are banks and other companies willing to issue credit cards?

They make money on the interest they charge on unpaid balances

To reduce the cost of homeowner's or renter's insurance, which of the following should you do?

Install an alarm system for fire and burglary

Which of the following is an example of insurance fraud?

A person claims that an accident caused an injury they had beforehand

How does having a loan to pay for a college education affect a person's net worth?

Net worth decreases by the amount of the total loan plus interest

When making online transactions, which of the following will minimize the threat of identity theft?

Using a unique password and changing it frequently

Which of the following is likely to DECREASE the auto insurance premium on a policy?

Taking a driver's education course

A person's credit report includes which of the following?

History of loans and credit activities

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Financial Literacy YCO (2)

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Questions 15

Answers

1
One example of using credit responsibly is:
Charging wanted items by purchasing them online
Buying a leather coat with the intention of paying the cost over four years
Charging an expensive item that is on sale today and you get paid soon
Paying less than the minimum balance on a monthly bill
2
What is an acceptable way for people to lower the cost of their automobile insurance?
Use the car for work as well as for pleasure
Increase the amount of the deductible
Have their car inspected by a mechanic certified by the state
Cancel their insurance after their car is registered
3
Credit card transactions are considered a form of borrowing because:
Consumers need to sign the receipt
The credit limit is based on a person's ability to repay debt
The money charged is immediately deducted from a bank account
Someone else's money is being used in with promise of repayment
4
"I pay my full credit card bill 5-7 days before the due date each month!" - This person probably has:
Adequate insurance coverage
An excellent credit score
A high interest rate
Monthly dividends from bonds
5
Which of the following will be difficult to do for a person with negative or inaccurate info on their credit report?
Travel
Apply for life insurance
Get a mortgage
Retire
6
Which of the following risks can a person cover by having insurance?
A flood in a home
A traffic violation
Losing a job
A divorce
7
Why are banks and other companies willing to issue credit cards?
They are required by recent laws to make money available
They are responsible for keeping inflation low.
They make money on the interest they charge on unpaid balances
They own credit counseling agencies
8
To reduce the cost of homeowner's or renter's insurance, which of the following should you do?
Install a backup generator for electric power
Install an alarm system for fire and burglary
Recycle paper and plastic trash daily in the same trash bin
Keep emergency numbers for police, fire, and ambulance on the refrigerator
9
Which of the following is an example of insurance fraud?
A person excludes his daughter as a driver on his car insurance
A person claims that an accident caused an injury they had beforehand
A person installs a radar detector in his car
A person with his own insurance drives a rented car.
10
How does having a loan to pay for a college education affect a person's net worth?
Only the amount of interest affects net worth
Private bank loans decrease net worth while federal loans do not
Education is an investment in the future, which increases net worth
Net worth decreases by the amount of the total loan plus interest
11
When making online transactions, which of the following will minimize the threat of identity theft?
Shutting down the computer and erasing the memory each day
Using a unique password and changing it frequently
Using a desktop computer instead of a mobile device
Doing all online transactions from home using Wi-Fi
12
Which of the following is likely to DECREASE the auto insurance premium on a policy?
Having a car accident
Getting a parking ticket
Adding a driver to your policy
Taking a driver's education course
13
One of the reasons lenders review your credit history is to determine:
Place of residence
The amount of life insurance coverage
How much is owed
Health history
14
A person's credit report includes which of the following?
Cost of insurance premiums and amount of federal tax refunds
History of loans and credit activities
Medical history and driving record
Retirement and savings account balances
15
Why might a 30-year old woman have a $470 monthly payment but a 25 year old man's is $460?
Down payment
Gender discrimination
Interest rate
Applicant's age

Financial Literacy YCO (2) Flashcards | StudBud