Lesson 21 Quiz

Match the following

• Credit

• Allows you to borrow money or buy things now and promise to pay for them later.

•  Down Payment

• To discuss and reach an agreement through compromise when dealing with others.

• Identity Theft

• When someone wrongfully obtains and uses another person's personal information with the intent to commit fraud, typically for financial gain.

• Negotiate

• The sum of money you pay upfront when making a purchase, typically a large one like a car or a house, to reduce the total amount you need to borrow.

Match the following

• Credit Score

• The original amount of money you borrow before adding interest.

•  Fair Market Value

• The fee you pay when you borrow money, usually given as a percentage

• Annual Percentage Rate (APR)

• The total cost of borrowing money, including both the interest rate and any annual fees

• Interest Rate

• The reasonable price at which an item or property would sell in a typical market

• Principal

•  A number from 300 to 850 that depicts a consumer's creditworthiness. The higher the score, the better

If Carl has a low credit score, which of the following is most likely to be higher for him?

• Principal

• Interest Rate.

• Chances of Identity Theft.

Which of the following is a way to use credit responsibly?

• Not using credit cards while you are a student

• Regularly checking your credit reports

• 1. Both of the above.

After sharing personal information over the phone with someone who claimed to work for the bank, Violet was alerted that a loan had been taken out in her name. What most likely happened to Violet?

• A credit score check

• Identify theft.

• 1. An overdraft fee.

Which of the following is NOT a useful tool for when you are researching vehicles to purchase?

• The Yellow Pages

• 1. Kelly Blue Book.

• 1. CarFax.

Which of the following features should be the most important in your search for a vehicle?

• Safety features.

• Entertainment features

• Visual design features

Reese found a car that they were interested in buying. The current owner had originally asked $5,000 for it, but Reese offered $4,000. In the end, they both agreed on $4,500 for the car. What is this process called?

• Down payment.

• Negotiation

• Fair market value.