Banzai PLUS Post Test Review (1st Period)

Why should you stay away from borrowing up to your credit limit?

• Because you're riding to the danger zone.

• Because Dave Ramsey said so.

• Because it reflects poorly on your credit score.

• Because your interest rate increases when you borrow more on a credit card.

You find evidence that your identity has been stolen. Who should you contact first?

• 911

• The Federal Trade Commission

• Your local bank or credit union

• The post office

Which of the following deductions are you most likely to see on your pay stub?

• Auto insurance deduction

• Office cupcake deduction

• Social Security deduction

• Municipal tax deduction

What is the main purpose of the dual accounting method?

• To help you think twice about purchases.

• To help you double check what you are spending your money on by confirming all receipts.

• To record every transaction twice, reflecting them in accounts and in your budget.

• To help you detect errors in your budget.

If you wanted to know what factors contributed to your credit score, how could you find out?

• Check your credit report.

• File a credit claim.

• Call your credit card company.

• Check your credit policy.

What's a "hard inquiry"?

• The document that you must fill out when you apply for a loan.

• A note that's added to your bank account when you've withdrawn over your limit.

• A negative mark that appears on your credit score whenever you review your credit report.

• When a financial institution requests information about your credit history for the purpose of extending more credit.

Which of the following shows up on your credit report?

• How many open accounts you have.

• Your debt-to-income ratio

• Your payment history.

• BOTH: How many open accounts you have and your payment history

What is a debt-to-income ratio?

• The ratio of your debt compared to your annual income.

• Something that lenders look at on your credit report.

• A percentage that helps lenders decide your ability to pay back a loan.

• All of the above.

You hit a deer while driving. The deer is fine but your car isn't. What kind of insurance must you have in order for the damage to be covered?

• Liability

• Comprehensive

• Collision

• All of the above

What percentage of a home price is typically required for your down payment if you want to avoid purchasing private mortgage insurance (PMI)?

• 15 percent

• 18 percent

• 20 percent

• 35 percent