Financial Lit Mod 3 DBA

What does APR mean in the world of finance?

• A month of the year

• Annual Presentation Rate

• Annual Percentage Rate

• Accepted Principles of Return

A Schumer Box is a box that credit card companies are required to display to potential applicants. What information can be found in this box?

• They only have to show the APR

• This is a trick question. Credit card companies are not required to display a box.

• They have to share all fees, interest rates, and penalties, as well as how to avoid paying interest.

When it comes to an auto loan, what is a down payment?

• Money that the lender gives you back once the loan is finalized

• Money that you give the lender when getting the loan

Why is a down payment a good idea?

• All of these answers are correct

• The lender will view you as less of a risk

• It will lower your payments

• It will lower the balance of your loan

What information is not located on your credit report?

• Your personal information such as all names and addresses known

• Your payment history including any late payments

• Your social security number

• A list of every item you bought on credit

What is a credit bureau?

• A company that calculates your credit score

• A government regulated company that calculates your credit score

• A drawer in which all your credit documentation is kept