FA Unit 7 Test Review

Credit cards would be considered which type: (a)  

• installment loan
• revolving line of credit

Keon plans to buy a new GMC Sierra for $47,000 at 5.5% APR.  Which financing option would have the highest total interest?

• 60-month term and a $2,000 down payment

• 60-month term and a $3,500 down payment

• 36-month term and a $3,500 down payment

• 36-month term and a $5,000 down payment

In order to take out federal student loans, you need to complete and submit the

• School application

• FAFSA

• FASFA

• Repayment plan

Which of the following is an example of an unsecured loan?

• A student loan

• A mortgage loan

• A Pawnshop loan

• A car loan

Which of the following best describes a Schumer box?

• The portion of your credit card agreement that lays out the important rates and fees

• A type of box used to store items

• The portion of your monthly credit card bill that lists the minimum monthly payment due

• The portion of your credit card application that asks for your income and employment status

Which statement is true about an annual percentage rate (APR)?

• APR is the interest rate combined with guaranteed fees

• APR is almost always lower than the interest rate

• Interest rate is for loans, while APR is for credit cards

• Interest rate is money you earn on investments, while APR is money you pay for debt

​ (a)   are the largest source of debt for most American households.

• Mortgages
• Students loans
• Credit cards
• Medical bills

If you fall behind on your loan payments, which of the following are recommended steps

• Call your lender to negotiate a payment plan that fits your needs

• Reduce your spending to divert additional income towards loan payments

• Find additional sources of income to help catch up on past due payments

• Put your past due loan payments on a credit card

Which of the following affects the monthly payment amount of a mortgage?

• Down payment

• Interest rate

• Term of the loan

• The bank that issues the mortgage

Tyler takes out $2700 in Direct Subsidized student loans during their first semester of college. When will interest start accruing?

• Immediately

• After the first semester

• After graduation

• Never