Personal Finance Final Review

A savings account earns the greatest amount of money when the interest on the account is compounded how often?

• Quarterly

• Daily

• Monthly

• Yearly

Your creditor determines your creditworthiness based on what?

• Capital

• Conditions of the economy

• Character, capacity, and collateral

• None of the above

When a borrower fails to repay a loan and there is a co-signer on the loan, the most likely result will be:

• The co-signer has the opportunity to renegotiate the loan.

• The co-signer will be help responsible for one-half the repayment of the loan.

• Only the co-signer's credit report will show that there has been a default on the loan.

• The co-signer will be held responsible for the repayment of the entire loan plus fees or penalties.

Which of the following lenders charge the highest interest rate?

• Banks

• Pawn Shops

• Credit Unions

When a person brings an item to a pawnshop to obtain cash, the transaction is considered to be a(n):

• A collateralized loan

• A sales agreement

• An unsecured loan

• A custodial payment

An advantage of using credit is:

• The many forms of hidden fees on the credit card bill.

• The increased cost of the purchase because of interest charges.

• The increase of being a victim of fraud or rip-offs.

• Not having to carry large amounts of cash.

Identify how a young adult can begin to establish a good credit rating.

• Have the telephone and utility bill in your own name.

• Pay off loans as desired, rather than quickly.

• Nothing. A person begins with a good credit rating.

• Keep high balances on various credit cards.

On a list of ATM safety tips, which statement does NOT belong?

• Do not write the PIN down on the back of the card.

• Don't continue a transaction is something suspicious happens.

• Shield the ATM screen so no one can see it but you.

• Choose a PIN number that is your birthday, address, social security, etc.

What services are available at a credit union?

• CDs and mortgage loans.

• Individual Retirement Account (IRA) Certificates and online banking.

• Savings accounts and checking accounts.

• All of the above

A customer is protected against a loss at a financial institution if it is insured by the:

• CB or CU

• FDIC or NCUA

• APR or INS

• NYSE or DJIA