Financial Math - Fall Semester Exam

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What is an installment loan?

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An installment loan is a type of loan that is repaid over time with a set number of scheduled payments. Examples include auto loans, mortgages, and student loans.

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What is a revolving line of credit?

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A revolving line of credit is a type of credit that allows the borrower to withdraw, repay, and withdraw again. Credit cards are a common example.

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What is the importance of checking your credit report regularly?

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Checking your credit report regularly helps identify potential errors or fraudulent activity, which can affect your credit score.

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What does it mean to live paycheck-to-paycheck?

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Living paycheck-to-paycheck means using your entire paycheck to cover monthly expenses, leaving little to no savings.

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What are some tips for safe online banking?

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Use strong, unique passwords for each account, avoid using personal information in passwords, and keep your devices updated.

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What is a credit score?

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A credit score is a numerical representation of a person's creditworthiness, based on their credit history.

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What factors can affect your credit score?

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Factors include payment history, credit utilization, length of credit history, types of credit used, and recent credit inquiries.

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What is the difference between a debit card and a credit card?

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A debit card withdraws money directly from your bank account, while a credit card allows you to borrow money up to a certain limit.

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What is the purpose of a budget?

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A budget helps individuals plan their spending and saving, ensuring they can meet their financial goals.

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What is interest?

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Interest is the cost of borrowing money, usually expressed as a percentage of the amount borrowed.