Personal Finance Final 2021

What is defaulting? (Select the best answer.)

• Failing to pay debts

• Opening too many credit accounts

• Getting a low credit score

• Building a credit history

Which of the following is not part of the process of establishing credit? (Select the best answer.)

• Opening a bank account

• Getting a credit card

• Taking out a loan

• Using a credit card regularly

What is financing? (Select the best answer.)

• Paying back debts

• Using credit to pay for purchases

• Reducing the principal of a loan

• Using a debit card to make purchases

Which of the following credit scores is a normal credit score? (Select the best answer.)

• 400

• 500

• 650

• 775

Which of the following is not a part of your credit report? (Select the best answer.)

• The number of inquiries banks have made about your credit

• The address of your current house or apartment

• The balance in your bank account

• The number of times you have filed for bankruptcy

What might you do if you are unable to get a credit card? (Select the best answer.)

• Make as many cash purchases as possible

• Apply for a department store card

• Stop accepting government assistance

• Pay less attention to your bank balance

What is co-signing? (Select the best answer.)

• Requesting multiple credit histories

• Opening two lines of credit at the same time

• Sharing responsibility for a debt with another person

• Allowing someone else to be completely responsible for your debt

What does a credit counselor do? (Select the best answer.)

• Co-signs a loan with you

• Helps you make a plan to resolve financial issues

• Convinces your creditors to reduce your debt

• Collects debts

What is a down payment? (Select the best answer.)

• The first payment a borrower makes on the principal of a loan

• A cash payment made by the borrower of a percentage of the total cost of the asset

• An interest rate charged on a credit card

• A fee paid to process a loan application

Which of the following is a part of applying for a loan? (Select the best answer.)

• Verifying your income

• Negotiating an interest rate

• Signing up for a credit card

• Completing a means exam