Which statement would explain the importance ofunderstanding the process of borrowing money?

When you are borrowing, you are spending future income

2 answer a essay question about meaning of open‐end credit, Ryan should include whatstatement?

Credit is givn in advance so borrower doesn't hav to reapply

How can a person LEGALLY avoid paying interest when using a credit card?

Pay the credit card balance in full every month b4 due date

Which is a general rule to minimize identity theft when dealing with credit reports?

Check each credit report at least once per year.

A reason a credit application may be denied

applied for 4 credit cards & a car loan in the past 6‐weeks.

What does it mean when you try to borrow money and you find out your credit score is low?

The interest rate on loan will b higher since score is low.

Description of closed‐end credit?

Equal payments are required regularly til loan is repaid.

What is the best thing to do if you no longer want to use your credit card?

Close the account by phone & in writing then destroy card.

Which of the following is an act of identity theft?

Wrongfully acquiring and using someone’s personal ID

Which strategy would be most effective to decrease risk of fraudulent use of her credit cards?

Signing back of card with signature & “Please see pictur ID”

What is meant by keep your useof credit within safe boundaries?

Keep amnt of money borrowed w/out mortgage < 20% o net incom

Sarah will turn 18 next month. She plans to apply for a credit card. Which statement is true?

She can only obtain a credit card if she has a co‐signer

When may a person view his/her credit report for free?

Once a year, from ea of the 3 main credit reporting agencies

Which of the following best describes the benefits of having insurance?

Insurance combined w/emergency saving provides peace ofmind

Edward wants to develop a positive credit history. How should he do this?

Maintain reasonable amounts of available credit

Which of thefollowing is NOT something an ID thief might realistically do with information?

Take a college admissions exam in that person’s name

Paying the minimum payment on a credit card every month will?......

Make the final amount paid alot higher than amnt 1st charged

What would you recommend Jenny do to begin to build a positivecredit history?

Jenny should obtain a secured credit card.

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Duplicate of Personal Finance Unit 6

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Questions 24

Answers

1
Which statement would explain the importance ofunderstanding the process of borrowing money?
Borrowing affects present self but has less impact on future
When you are borrowing, you are spending future income
Borrowing isa important part of a responsible financial plan
Borrowing builds a strong credit history
2
2 answer a essay question about meaning of open‐end credit, Ryan should include whatstatement?
A down payment must be made before receiving a loan
U r allowed 2 borrow unlimited amt of money if u pay it back
Payments are equal and required to b paid on a regular basis
Credit is givn in advance so borrower doesn't hav to reapply
3
How can a person LEGALLY avoid paying interest when using a credit card?
Pay the credit card balance in full every month b4 due date
Make sure u pay the minimum balance every month b4 due date
Limit the use of his credit cards to balance transfers only
There is not a legalway to avoid paying interest
4
Which is a general rule to minimize identity theft when dealing with credit reports?
Check each credit report at least once per year.
Keep creditreports n ez accessble locale so infocan b access
Wait 60 days b4 disputing wrong info found in credit report
Report mistakes 2 1 creditreport agency &they inform others
5
A reason a credit application may be denied
received 3 traffic tickets in the past 2 months
holds 2 store credit cards, a car loan, & a mortgage
Jake pays his bills consistently and on time
applied for 4 credit cards & a car loan in the past 6‐weeks.
6
Which of the following actions will not make an individual vulnerable to identity theft?
Paying cash for a movie ticket
Throwing mail in the garbage
Using a computer without updated spyware
Responding to an email from your depository institution
7
What does it mean when you try to borrow money and you find out your credit score is low?
The purchase price ofthe item u need loan for will be higher
The interest rates will be lower, since credit score is low.
The monthly loan payments will be lower due to lower score
The interest rate on loan will b higher since score is low.
8
Description of closed‐end credit?
Interest rates vary depending on the repayment history.
Credit limits vary depending on the loan balance.
Equal payments are required regularly til loan is repaid.
Continuous loan borrower must repay with a revolving balance
9
What is the best thing to do if you no longer want to use your credit card?
Let a family member take over the credit account.
Close the account by phone & in writing then destroy card.
File the credit card away for use at a later time
Keep credit card in your wallet in case u needs proof of ID.
10
Which of the following is an act of identity theft?
Having the same name as another person
Taking the ID of another person as inspiration for a costume
Wrongfully acquiring and using someone’s personal ID
Receiving permission to use a parent’s credit card
11
Which strategy would be most effective to decrease risk of fraudulent use of her credit cards?
Signing back of card with signature & “Please see pictur ID”
Giving account numbers over internet rather than over phone
Carrying all credit cards in wallet so they don’t get lost
Use credit cards 4 allpurchases only need 2 pay 1 bill ea mo
12
What is meant by keep your useof credit within safe boundaries?
Keep amnt of money borrowed incl mortgage < 40% o net income
Keep amnt of money borrowed incl mortgage< 20% of net income
Keep amnt of money borrowed w/out mortgage < 40% o net incom
Keep amnt of money borrowed w/out mortgage < 20% o net incom
13
Sarah will turn 18 next month. She plans to apply for a credit card. Which statement is true?
She can obtain a credit card by filling out an application
She can only obtain a credit card if she has a co‐signer
Sarah cannot obtain a credit card until she turns 21.
She will need to use a special application since shes < 25.
14
When may a person view his/her credit report for free?
A person may not review his/her credit report
If a person has sufficient financial resources
Once a year, from ea of the 3 main credit reporting agencies
At any time and an unlimited number of times
15
What is a safety tip to follow when shopping online?
Use a debit card
Black out accnt # on credit card bill b4 returning it w/pmt
Shred sales receipts as soon as item purchased is received
Use a credit card
16
Which of the following best describes the benefits of having insurance?
Insurance combined w/emergency saving provides peace ofmind
U don't have 2 worry abt payin 4financial loss from accident
Its required bylaw 2purchase insurance sobenefits dontmatter
Policyholder may be better off financially if accident occur
17
Which is NOT an example of a data furnisher?
credit card company
medical provider
landlord
utility company
18
Which personal information is LEAST LIKELY to be used by scammers?
Bank account numbers
Credit card numbers
Phone numbers
Driver’s license numbers
19
Edward wants to develop a positive credit history. How should he do this?
Have one type of credit account
Maintain reasonable amounts of available credit
Pay cash for the majority of purchases
Open credit accounts in his parents’ names
20
Which of thefollowing is NOT something an ID thief might realistically do with information?
Rent an apartment under that person's name
Use that person’s name during an arrest
Take a college admissions exam in that person’s name
Make purchases with that person’s credit card
21
Which of the following is NOT included in an individual’s credit report?
Medical information
Account balances
Current and past addresses
Bankruptcies and foreclosures
22
What may have happened to make you have to pay a Penalty APR?
forgot to send the payments
You made the account go over the credit limit for 1 week
credit card payment has been paid in full each month
Card had lower introductory interest rate for the first year
23
Paying the minimum payment on a credit card every month will?......
Pay a large percentage of the total balance owed
Help one make plan 4 payin off credit cd n decent amt o time
Make the final amount paid alot higher than amnt 1st charged
Allow the cardholder to avoid paying any interest
24
What would you recommend Jenny do to begin to build a positivecredit history?
Jenny should obtain a secured credit card.
include letterof recommendation from someoneshe knows well
Apply for a credit card instead of bank loan
acquire credit cards to establish that she can manage them

Duplicate of Personal Finance Unit 6 Flashcards | StudBud