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WISE Financial Review
WISE Financial Review
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WISE Financial Literacy Review
Flashcards
14 cards
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Practice quiz
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Questions
14
Answers
1
Which is considered to be open-end credit?
A Mortgage
Installment Loan
Department Store Charge Card
A Car Loan
2
Which of the following lenders charge the highest interest rate?
Credit Union
Finance Company
Pawn shop
Bank
3
To qualify for a Federal Housing Administration (FHA) loan, a person must generally _________.
fulfill income guidelines
have a high school diploma
have 1/4 of the cost of the home for down-payment
provide 2 individuals to co-sign
4
What is meant by an uncollateralized loan?
A loan taken on an insurance policy
A loan backed by a co-signer
A loan without assets to cover the amount of the loan
A home equity loan
5
Consumers who file for bankruptcy are still responsible for:
Tax claims and student loans
Mortgage loans
Credit Card balances
Car loans
6
When a person declares bankruptcy, that fact will appear a person's credit report ____.
for a 10 year period
until the person can receive a new credit card
for a 3 year period
until the person repays all their debts owed
7
Redlining is characterized by a lender who denies a loan:
To customers applying for a loan over a certain amount
To customers living in a certain geographic area
Based on a customer's ability to repay
Because of a customer's age
8
A credit card finance charge is:
The dollar amount it costs to use credit
The cost of items purchased
A service fee
The sales tax
9
Collateral is:
Something that explains your net worth
An item of value used to secure a loan to protect the lender
Required for all loans
A form of credit
10
Maxine has an auto loan that she has to pay monthly payments over 5 years. She has a(n)
Non-installment loan
Balloon payment loan
Installment loan
Unsecured loan
11
A savings account that earns the greatest amount of money is when the interest is compounded _
quarterly
yearly
daily
monthly
12
Which of the following would likely lead to an increase in the interest rate on a credit card?
Total amount charged
Number of cash advances
Number of purchases
Late payments
13
When a person brings in an item to a pawnshop to obtain cash, the transaction is considered __.
a collateralized loan
an unsecured loan
a sales agreement
a custodial payment
14
Victims of predatory lending are typically:
The elderly and customers with poor credit history
Customers who are financially literate
Customers with a good credit history
Borrowers from wealthy communities
