Econ 6 Week Exam Review

The amount of debt, not counting interest, left on a loan is the __________.

• Down Payment

• Commitment

• Principal

• Appraisal

When balancing/reconciling your checking account, which of the following should you do?

• Automatically examine your bank statement each month for accurate information on deposits and withdrawals.

• Make sure you include any ATM fees or other charges added to your account.

• Look for suspicious entries which may indicate identity theft.

• You should do all of these chooses

Which of the following are considered a “financial institution”?​

• A bank

• ​an insurance company

• ​a savings and loan

• All of these

Which strategies would help you become a low-risk borrower by improving one’s personal credit score.

• Pay bills on time- historical aspect of credit

• Keep credit card balances low

• Avoid consolidating balances

• All of these should be done.

What is a benefit of home ownership?

• You build equity in your home.

• You have more yard work.

• You are responsible for maintenance.

• You are not responsible for maintenance.

John wants to buy a $2,000 car; which loan should he get?

• Payday loan

• Credit card

• Bank loan

• Mortgage

In order to open a bank account, one of the things you will need to present is a?

• birth certificate

• proof of employment

• letter of recommendation

• photo ID

Why is it important to live on a budget?

• Living on a budget will make you a financial adviser.

• Living on a budget will make your life easier.

• Living on a budget will increase your income.

• Living on a budget will eliminate your expenditures.

If you do not pay your apartment rent on time, what consequence will result?

• Foreclosure

• Bankruptcy

• Eviction

• Repossession

How much money should you save before you start renting an apartment?

• Enough to pay the first month’s rent

• Enough to pay the last month’s rent

• Enough to pay all of the these

• Enough to pay the security deposit