Financial Lit - Unit 3 The Money You Spend

Capital, Collateral, Capacity, and Character, together, are described as:

• APR

• The 4C's of Credit Worthiness

The type of insurance a homeowner would expect to pay to cover personal property in the home, the dwelling, and loss of the home's use in case of a disaster. 

• Umbrella Insurance

• Auto Insurance

• Full-Coverage Insurance

• Property Insurance

This term conveys legal ownership in property and is sometimes refereed to as a title, as it is with cars. 

• Capital

• Deed

• Premium

• TCO

Insurance companies will make you come "out of pocket," with your own money before they will begin to cover an insurance claim.  This is called a:

• Premium

• Deductible

• appreciation

• Coverage Limit

Which of these is not one of the three major credit bureaus:

• Experian

• FICO

• Equifax

• Transunion

One of the 4C's of Credit Worthiness.  This is the one where the lender asks the borrower to pledge something of value in the event that the creditor is unable to pay that the item will be exchanged to help satisfy the debt. 

• Capital

• Character

• Collateral

• Capacity

All insurance policies "cap out," meaning, they reach a maximum number of dollars that the insurance company is obligated to pay to cover you in the event of a claim.  This describes insurance:

• Coverage Limit

• Policy

• Deductible

• Premium

A form of bankruptcy that allows you to negotiate and re-pay some of your debt (like on a home mortgage) to your lender over a period of time (generally no more than 5-years) 

• Real Bankruptcy

• Chapter 7

• Legal Bankruptcy

• Chapter 13

This describes a legal document used most often with cars and apartments whereby the terms and conditions of a long-term rental contract are outlined.

• Lease

• Description of Terms

• Installment Agreement

• Declaration of Credit

The 'C' that measures one's ability to repay a debt based upon one's income to debt ratio, is called:

• Capacity

• Collateral

• Captial