Personal Financial Responsibility: Chapter 8 Review

Long-term debt is a loan that is payable over a period longer than a year.

• True
• False

If a credit card company charges an annual fee, it will be charged regardless of whether the cardholder has used the card or carried a balance in the last year.

• True
• False

Amortization is the process of dividing your debt obligation, plus interest, into increasingly smaller monthly payments over a set period of time.

• True
• False

If something major happens to a leased car, such as engine failure, the lessee usually must pay for it.

• True
• False

Many car buyers seek to obtain a pre-approved loan so that they know the maximum amount they will be able to borrow in advance.

• True
• False

A lease payment on a car is typically much more than a monthly car loan payment.

• True
• False

A landlord must keep tennants' security deposits in a separate account and refund any nonused portions.

• True
• False

Debt represents future earnings already spent.

• True
• False

It is desirable to keep the number of credit cards you have to a maximum.

• True
• False

If you've already been preapproved for a car loan through your bank, you should not consider the finance offer presented to you by the car dealer.

• True
• False