Personal Finance Banking, Credit, Insurance Review

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What is an insurance premium?

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Your monthly payment to your insurer, regardless of whether you use any services

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Which term refers to the percentage of covered medical expenses you are responsible for paying after your deductible is met?

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Co-insurance

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Juan saved $1,000 from his summer job cleaning pools. Which of these account types would work best for him if he doesn't need access to the money for a number of years AND wants to earn the highest interest rate? Regular savings account, Money Market account, Checking account, Certificate of Deposit

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Certificate of Deposit

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All of the following are true about prepaid cards EXCEPT…
Prepaid cards typically include a lot of fees
Prepaid cards are a useful option for someone who is unbanked to make online purchases
Prepaid cards are a great way to build credit
Prepaid cards are usually accepted anywhere that debit and credit cards are accepted

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Prepaid cards are a great way to build credit

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Which of these statements best explains why it's often a good idea to pay more than the monthly amount due on an amortized loan?
Options:
Every time you pay extra, the lender will reduce the interest rate they're charging by a small amount;
The extra payment will be applied to the principal amount you owe, which will pay down your debt more quickly;
The extra payment will be applied to the interest you owe, which will reduce the overall cost of your loan;
Amortized loans typically have much higher interest rates than credit cards, so they're the best place to put your extra cash.

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The extra payment will be applied to the principal amount you owe, which will pay down your debt more quickly.

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If you are having trouble making auto loan payments and are really following a tight budget, which recommendation below represents the WORST advice?

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Stop making payments on some of your debts so you can focus on getting the most expensive or largest debts under control

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Reading through a credit card’s Schumer Box, you see the APR for a specific card is set at 9.99% - 23.99%. Which statement is true? Mark only one oval. Options: When given a range of APRs like this, you can assume most cardholders pay the lowest rate listed, Your APR will be within that range, depending on the strength of your credit history, In this case, you want the highest APR in the range because you’ll earn more, The APR on credit cards is usually fixed, so it won't be adjusted as long as you are a cardholder

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Your APR will be within that range, depending on the strength of your credit history

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What is an advantage of using a credit card? Mark only one oval.

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You can make an emergency purchase that you otherwise don’t have the money to pay for right now

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Select the statement below that accurately describes a characteristic of a credit card: You owe the same payment every month, You must have money deposited into a checking account to use the credit card for purchases, They do not charge interest

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Making full payments on-time every month is the only way to avoid interest charges

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An excellent credit score will help with which aspect of car financing?

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Qualifying for a low interest rate