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Understanding Credit Flashcards | StudBud

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Understanding Credit

10 terms·StudBud Administration·64 plays

#Lifeworks, #Financial Literacy

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Questions 10

Answers

1
Why do car ads post the monthly or weekly payments?
To make it easy to see how much the car costs
To pray on the financially illiterate
To make it easy to hide extra fees
To hide all of the interest that you are paying
2
When buying a car with a loan, is this the only cost to owning the car?
Yes
No
3
What is Credit?
An arrangement to borrow money
The money that you have already borrowed
Your monthly car payments
Something that is only available to rich people
4
Which factory DOES NOT affect a car loan
How much you borrow
The type of car
How long you take to repay the loan
The interest rate on the loan
5
What is the most important financial criteria when purchasing a car?
Can I fit all of my friends into the car?
Do I like the colour of the car?
Can I afford the monthly payments?
What is the final price of the car?
6
A Car loan is an example of a ...
Installment Loan
Revolving Credit
A mortgage
7
Is a car a financial asset?
No
Yes
8
When applying for a loan, a lender will consider your CAPACITY. What does this mean?
How long have you had your job?
All of your income, debts + expenses
How much money you make?
How much money you owe?
9
A Credit Card is...
A safe way to pay
Free Money
An easy way to pay
A great way to borrow lots of money
10
When a car DEPRECIATES, what do we mean by this?
It costs lots of money to maintain a car
How much our loan payments are
The car is worth less money in the future
It costs lots of money to insure a car