Economics Final Review

Front

Magda is financing her car with a loan. Which statement is accurate? Her principal is the car cost minus any down payment, Her interest rate is the total cost after all payments, A shorter term means longer repayment time, Her monthly payment will likely be 4-5% of the car cost

Back

Her principal is the car cost minus any down payment

Front

Jaime is creating a budget. Should he use NET PAY or GROSS PAY?

Back

Use net pay, it’s your earnings minus taxes and deductions.

Front

What behaviors can prevent smart investing decisions? Exiting the market because others are doing so

Back

Exiting the market because others are doing so

Front

Which statement about credit scores does the bar graph support? Options: Credit scores drop as you age due to potential missed payments, Young people find borrowing difficult due to less payment history, Young people likely have lower interest rates due to lower credit scores, Young people get loans at lower interest rates due to timely payments

Back

Young people find borrowing difficult due to less payment history

Front

Which is NOT a characteristic of a secured credit card?

Back

They don’t have a spending limit

Front

How can your friend improve his low credit score?

Back

Make payments on time

Front

You bought 10 shares for $45 each and sold them for $80 each. What was your profit?

Back

Profit of $350

Front

Which is true about fixed and adjustable-rate mortgages? Options: Fixed-rate mortgages have a constant payment but increasing interest rate, Fixed-rate mortgages have a fixed interest rate for a few years, then it fluctuates, Adjustable-rate mortgages have a fixed interest rate for a few years, then it fluctuates, Both mortgages work the same but are called different names depending on the institution

Back

Adjustable-rate mortgages have a fixed interest rate for a few years, then it fluctuates

Front

Which credit payback strategy leads to the highest overall cost? Options: Paying off your credit card bill in full every month, Paying 20% of your credit card balance every month on time, Making the minimum payment every month on time, Making the minimum payment every month with occasional late payment

Back

Making the minimum payment every month with occasional late payment

Front

Which of the following is NOT found in your credit report?
Credit payment history, Average age of credit accounts, Number of active credit accounts

Back

Checking account balance history