6th Period Practice Test

Which is not one of the ways that thieves steal private information?

• Dumpster diving
• Phishing
• Skimming
• Tweeting

A loan is formalized by a legal document is called a ...

• asset
• simple interest loan
• promissory note
• lien

If you buy a house that costs $15,234 and the bank requires a down payment of 34%, what is the down payment?

• $534.76
• $635.24
• $10,054.44
• $5,179.56

I have a credit card with an APR of 20.4%, the sum of the daily balances is $18,567.52.  This month's billing cycle is 30 days.  Using the average daily balance method, calculate this month's finance charge.

• $10.52
• $15.17
• $12.06
• $11.53

You borrow $32,000 using an installment loan and make monthly payments of $532.47.  The APR is 6.82%.  On your first payment, how much interest will you pay and how much principal will you pay?

• int $287.81
  prin $306.20
• int $181.87
  prin $350.60
• int $777.33
  prin $224.97
• int $97.81
  prin $181.22

You have a credit card which has a current balance of $3,456 and credit limit of $5,000, what is your debt to credit ratio?
Ratio = (Balance/limit)x100

• 69.12%
• 0.6912%
• 1.44%
• 30.88%

Which is not a benefit from having a good credit score?

• lower APR's
• better insurance premiums
• lower minimum payments
• little/no deposit on utilities

Your credit card has an APR of 25.16%, what's your monthly periodic rate?  Write as decimal and round to four places.

• 2.0967
• 0.0210
• 0.0209
• 2.10

While making payments on a installment loan over time, what happens to the amount of interest and principal paid each month?

• Interest up
  Principal down
• Interest up
  Principal up
• Interest down
  Principal down
• Interest down
  Principal up

What is it called when the bank takes your car for neglecting to pay the loan?

• Charge-off
• Tax Lien
• Forclosure
• Reposession