Financial Literacy Flashcards

Front

A type of debt in which you borrow money for a period of time with an agreed-upon interest rate and repayment plan is called a(n)

Back

Installment Loan

Front

A legal process a creditor can use to force the sale of mortgaged property to repay the mortgage when a borrower does not make mortgage payments is called

Back

Foreclosure

Front

A federal law, the, prohibits abusive practices when collecting debt.

Back

Fair Debt Collection Practices Act

Front

A type of bankruptcy called is also known as straight bankruptcy.

Back

Chapter 7 Liquidation

Front

Creditworthiness is how reliable you are on paying back money you borrowed and how good or bad your credit history is.

Back

TRUE

Front

When making payments in cash, you should get a receipt as proof of payment.

Back

TRUE

Front

Automatic payments from your account can save you money, but you must manage the account carefully.

Back

TRUE

Front

In New Jersey repaying a debt early is never a wise choice because you will have to pay a prepayment penalty.

Back

FALSE

Front

Secured loans may require a cosigner if the borrower does not have property to pledge as security for the loan.

Back

TRUE

Front

Federal agencies do not test drugs, food, and other products for safety and to see if they live up to their claims.

Back

FALSE