PF Credit and Spending Unit 6.00

Question 1

Why is investing in product research an important part of the planned buying process?

Accepted Answer

Research enhances satisfaction

Question 2

If your medical bill is $1,000 and you're required to pay 20% with a $500 deductible, you pay..

Accepted Answer

$600

Question 3

The purpose of insurance is to make you financially better off than you were before the event

Accepted Answer

False

Question 4

Which is not an example of a data furnisher?

Accepted Answer

Credit card company

Question 5

Insurance that pays for property loss to the insured person is...

Accepted Answer

property

Question 6

Wrongfully acquiring and using someone’s personal identification is

Accepted Answer

identity theft

Question 7

When making food decisions, which is likely to be the least expensive?

Accepted Answer

convenience foods

Question 8

Which is not included in an individual’s credit report?

Accepted Answer

Medical records

Question 9

Which of the following is the largest of the major expenditures?

Accepted Answer

housing

Question 10

What is an example of an unbiased source, regarding researching a product?

Accepted Answer

A product review from an independent company

Question 11

When shopping online......

Accepted Answer

use a credit card

Question 12

An example of negative credit history would be...

Accepted Answer

applying for 4 credit cards in 6 weeks

Question 13

An example of positive credit history would be

Accepted Answer

paying your bills on time

Question 14

If you're under 18 and you want to get a credit card, you must have

Accepted Answer

An adult co-signer

Question 15

Credit is extended in advance so the borrower does not have to apply for credit over and over

Accepted Answer

open-end credit

Question 16

Which would explain the importance of understanding the process of borrowing money?

Accepted Answer

When you are borrowing, you are spending future income.

Question 17

Which personal information is least likely to be used by scammers?

Accepted Answer

phone numbers

Question 18

How can you legally avoid paying interest on a credit card?

Accepted Answer

pay off the full amount before the grace period

Question 19

When dealing with credit reports, to minimize identity theft...

Accepted Answer

check each report at least once per year

Question 20

A rental agreement

Accepted Answer

lease

Question 21

If a thief steals your wallet and your personal info/cards, they would probably use it for...

Accepted Answer

making purchases

Question 22

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

Accepted Answer

once a year for each of the 3 main credit report agencies

Question 23

What is not an example of a durable good?

Accepted Answer

food

Question 24

Health, life, and disability insurance provided by an employer are known as...

Accepted Answer

Employee benefits

Question 25

Who is responsible for purchasing renter's insurance?

Accepted Answer

tenants

Question 26

Which best describes the benefits of having insurance?

Accepted Answer

peace of mind

Question 27

A fee required by a landlord to cover any damages that may occur with a tenant

Accepted Answer

security deposit

Question 28

To maximize satisfaction when making a significant purchase, it is suggested that you...

Accepted Answer

Review shipping and return policies in advance

Question 29

The monthly amount you pay to keep your health insurance is called the

Accepted Answer

premium

Question 30

'Equal payments are required on a regular basis until the loan is repaid' is a description of a

Accepted Answer

closed-end credit

Question 31

Which of the following could be the result of a low credit score?

Accepted Answer

interest rate on a loan will be higher

Question 32

How should you maintain positive credit history?

Accepted Answer

maintain reasonable amounts of available credit

Question 33

The value of a home after the mortgage debt is subtracted.

Accepted Answer

equity

Question 34

Why might you be charged a penalty APR?

Accepted Answer

missed paying credit card payments

Question 35

Insurance can be purchased to protect one from which losses?

Accepted Answer

health care expenses

Question 36

Which expense would not be considered part of the total transportation expenses of a car?

Accepted Answer

Depreciation

Question 37

What should you do if you no longer want to use a store credit card?

Accepted Answer

Close the account and destroy the card

Question 38

To reduce the risk of fraudulent use of your credit card, you should...

Accepted Answer

Sign the back of your card and "Please see picture ID"

Question 39

Using credit within safe boundaries means...

Accepted Answer

keep the total borrowed, excluding house < 20% of net income

Question 40

Renting a vehicle by making payments, but the vehicle title would remain with the lease grantor

Accepted Answer

leasing a car

Question 41

Which would build a positive credit history?

Accepted Answer

Obtain a secured credit card

Question 42

When one owes more on a vehicle or other property, than it is worth.

Accepted Answer

upside-down on a loan

Question 43

The person who benefits by receiving proceeds when a person dies is called the

Accepted Answer

beneficiary

Question 44

It is recommended that a person purchase life insurance when...

Accepted Answer

they have dependents

Question 45

Paying the minimum payment on a credit card every month will:

Accepted Answer

Make the final amount higher than the original amount

Question 46

What are the 3 major expenditures for most people?

Accepted Answer

housing, food, transportation

Question 47

Insurance that pays for loss to other people

Accepted Answer

liability

Question 48

The cost of using someone else’s property.

Accepted Answer

rent

PF Credit and Spending Unit 6.00

Questions 48

PF Credit and Spending Unit 6.00

Questions 48