Eco and PF Unit 3 Review Credit Loans and Insurance

How are voluntary and involuntary bankruptcy different?

• Voluntary bankruptcy is initiated by the person or business in debt; involuntary bankruptcy is initiated by the creditors.

• Voluntary bankruptcy protects the individual from paying all debits owed; involuntary bankruptcy requires are all debts be paid.

What is a potential internet security issues?

• Viruses, or individuals who attempt to gain access to another person's computer, do harm to the hard drive.

• Phishing scams, which typically involve emails or social media requests, trick users into revealing account information.

What is a consumer right based on the Fair Credit Reporting Act?

• Consumers can block potential creditors from viewing a credit report.

• Consumers can dispute incorrect information on a credit report.

• Consumers can remove unfavorable information from a credit report.

• Consumers can opt out of the credit reporting system.

How can consumers seek remedy from unfair financial practices?

• By getting in touch with local TV station in the hopes that they will publicize your issue.

• by filing a dispute with the proper authorities and working with an advocate to resolve any issues.

What is the difference between the costs of secured and unsecured loans?

• Secured loans have lower interest rates and cost less; unsecured loans have higher interest rates and cost more.

• Secured loans have higher interest rates costing more; unsecured loans have lower interest rates costing less.

What is the difference between the conditions of secured and unsecured loans?

• Larger down payments are required for secured loans; smaller down payments for unsecured loans.

• Collateral is required from the borrower for secured loans; no requirement for collateral is required for unsecured loans.

Why do many banks consider students loans risky investments?

• Student loans have long grace periods.

• Students loans aren't secured by collateral.

• Student loans bring in a low rate of interest.

• Students loans are regulated by the government.

Which of these describes what can happen with an adjustable-rate mortgage?

• The monthly mortgage payments go up or down from year to year.

• The amount of principal owed on the mortgage changes as the housing market changes.

Which of these describes how a fixed-rate mortgage works?

• The property taxes on a fixed-rate mortgage never get any higher.

• The monthly payment on a fixed-rate mortgage never changes.

Which situation would result in a credit card issuer charging a balance-transfer fee?

• A cardholder pays $75 for the privilege of using the card for one year.

• A cardholder takes out $400 from an ATM

• A cardholder pays off one credit card with a new credit card.

• A cardholder fails to make a minimum payment one month.