FinLit Unit 3 Study Guide

Front

Low income is the most common symptom of financial ​irresponsibility.

Back

False

Front

Interest is charged on the unused portion of a line of credit.

Back

False

Front

A rental agreement is also called a month-to-month agreement.

Back

True

Front

Garnishments are the legal process that allows part of an employee's paycheck to be withheld for payment of debt. True or False?

Back

True

Front

Bankruptcy is the legal procedure to relieve a person of excess debt.

Back

True

Front

With installment credit, a consumer can charge to the account repeatedly up to a maximum limit.

Back

False

Front

Paying for a purchase with a credit card, rather than cash or a debit card, gives the consumer more leverage in the event of a dispute.

Back

True

Front

Loan refinancing usually results in lower interest costs.

Back

True

Front

Title loans generally have low interest rates because lenders hold the titles to borrowers' vehicles as collateral.

Back

False

Front

Is Chapter 13 bankruptcy also known as straight bankruptcy or liquidation bankruptcy because it involves forfeiture of an individual's assets in exchange for discharging the individual's debt?

Back

False