Financial Lit Post Test Review

A low credit score will affect an individual financially because the:

• purchase price of an item will be higher

• the interest rate of loans will be higher

• monthly payments will be lower

• interest rate of loans will be lower

A dependent is a person who:

• pays the taxes for all the members of the family

• relies on the taxpayer for financial support

• depends on their job for needed financial support to pay their expenses

• relies on the government for their Social Security benefit check

The best place for a consumer to acquire their credit report is at a:

• depository institution

• public library

• credit reporting agency

• municipal court

What is a disadvantage of leasing?

• your monthly lease payment is usually greater for expensive cars than if you had purchased the car

• after making the monthly lease payments for several years, you own nothing

• you don't usually have the option to purchase the car at the end of the lease

• if you decide to continue the lease when the first agreement is up, you have to keep the same car instead of getting a different one

Which of the following statements is false?

• future credit will be easy to obtain for persons who have filed bankruptcy

• bankruptcy will not affect certain types of income a debtor might have

• the cost of attorney fees and court costs in bankruptcy are relatively small

• bankruptcy offers a fresh start

How much interest will you pay if you pay your full balance before the end of the grace period?

• None

• your balance x the prime rate

• your balance x APR

• the minimum amount stated in the disclosure

Which of the following is a factor that influences automobile insurance rates?

• car color

• health practices

• number of people in the car

• driving record

You may find out your identity has been stolen when you:

• find charges that you did not make on your personal account

• review your credit report

• do not received scheduled bank statements in the mail

• all of the above

What is a safety tip to remember with credit cards?

• keep a list of all cards, account numbers, and phone numbers separate from cards

• throw away all credit card offers without opening them

• open as many credit card accounts as possible

• loan your card only to those in your immediate family since federal laws offer protection when a relative uses your card

What is a balance transfer?

• paying a credit card balance with a check

• transferring money from one account to another in order to completely pay off a credit card balance

• transferring credit card debt from one credit card to another

• withdrawing cash from an ATM using a credit card