Semester Exam 2023-2024

Andy gets paid every two weeks. He still has 5 days to go before his next paycheck, but he has no money to pay for groceries this week. He is considering applying for a payday loan to cover these expenses. Why is taking out a payday loans not the best option for Andy?

• Payday loans usually involve higher interest rates and fees than credit cards or other short-term loans.

• Payday loans are only offered to individuals with high credit scores.

• Payday loans give borrowers a way to pay for their expenses in the short-term before they receive their paycheck.

• Payday are difficult to get approved and usually require a co-signer.

A credit card is an example of this type of credit.

• Target Card

• Installment Credit

• Reverse credit

• Revolving Credit

Joe wants to purchase a new car. He has a low credit score, auto repossession and was delinquent on a credit cards. Joe has been denied a new auto loan by his bank. Which of the following is negatively impacting Joe's credit and ability to get approved for an auto loan?

• Character

• Capacity

• Collateral

• Capital

Jane is looking for an apartment. Based on her credit report will her lease agreement be approved?

• There is an error on Jane's credit report because it shows a past-due auto loan. Jane should report this error to the credit agency before applying for lease

• There is an error on Jane's credit report because it shows a past-due auto loan. Jane does not need to report this error because it will not affect her lease applications.

• Jane has an excellent credit score. She will have little to no difficulty finding an apartment based on her credit score alone.

• Jane has a poor credit score. She will likely have difficulty finding an apartment on her credit score alone.

Jesus and his friends are discussing ways in which they can protect themselves from identity theft. Which of the following is NOT good advice when protecting your identity?

• you should store documents with personal information in a safe place at home.

• you should use different and strong passwords for each of your accounts.

• you should shred any type of financial

• you should use your debit card instead of your credit card when making online purchases.

Using the image above, what is one inference that can be made about consumer protection agencies?

• Consumer protection agencies work to stop unfair or deceptive business practices such as false advertising that can harm consumers.

• Consumer protection agencies have outlawed the sale of VCR players.

• Consumer protection agencies do not have much power and have been unable to stop unfair business practices.

• Consumer protection agencies led to more online shopping due to the ongoing fear of deceptive business practices.

Ada is a recent college graduate who moved to a new city to take an entry-level position at a big corporation. She is making enough money to purchase a home, but decides to rent instead. What might be the reasons Ada decided to rent vs buying her first home? Select TWO correct answers.

• Ada is not sure she wants to stay in the city long-term, so she wants the mobility of renting.

• Ada doesn't have the time, skill or desire to maintain and repair her own property.

• Ada's financial advisor suggests that she invest in real estate by renting an apartment.

• Ada wants to be able to paint her walls and re-design her kitchen.

• Ada wants interest rates to go higher for home prices.

Jasmin is looking to purchase a new car and is deciding between taking out a loan for her down payment or cutting spending until she is able to come up with the money needed. Which is these statements is TRUE?

• Taking out a loan will cost Jasmin more money than cutting spending.

• Cutting spending is the quickest way to get money for the down payment.

• Taking out a loan will not affect Julie's budget in any way.

• Cutting spending will ensure that Jasmin gets the best price on her car.

What is one generalization that can be made from this image about the costs associated with homeowner's insurance?

• Sometimes certain damages are excluded from the homeowner's insurance policy causing the homeowner to be responsible for the repairs.

• Homeowner's insurance premiums can be expensive

• Sometimes the insurance deductibles are too high and homeowners are not able to pay them.

• Homeowner's policies cover all damages to your home as long as they were caused by natural disasters.

Which of the following best describes an entrepreneur?

• Someone who takes financial risks to create a business in the hope of profit.

• Someone who is employed 40 hours a week for a business owned by someone else.

• An independent contractor who earns their wages on a per-job or per-task basis.

• A labor market that relies on temporary positions filled by freelancers.