EcoEx

One of the obligations of borrowing money is to —

• cosign loans for others

• make payments on time

• request the lowest interest rate possible

• designate in your will who pays the loan

A first step to beginning a savings program would most likely be to —

• obtain credit

• open a checking account

• set financial goals

• sign up for Direct Deposit

One of the benefits of renting a home is that the cost of maintenance is —

• refunded with the deposit

• covered by renters insurance

• cheaper in a rental property

• the responsibility of the landlord

Which of the following retirement investment options is usually offered as a benefit of employment?

• Bonds

• 401(k)

• Mutual Funds

• college tuition reimbursement

One of the financial advantages of donating to charitable causes is that the donation can be —

• viewed as a capital gain

• used to fund investments

• considered a tax deduction

• taken directly from a paycheck

What is one advantage to placing savings in a high-risk investment as oppose to putting savings in a low-risk investment?

• The tax rate on high-risk investments is lower.

• The amount of money needed to invest is lower.

• The money is more secure in a high-risk investment.

• The potential rate of return on investment is higher.

A long-term cost of owning a home includes —

• Grocery expenses
• Car insurance
• Property taxes, homeowners insurance, maintenance and repairs, utilities, potential HOA fees
• Gardening tools

A line of credit that allows a borrower to repeatedly use it within a certain monetary amount is considered to be —

• a secured loan

• open-ended credit

• close-ended credit

• a retirement account

One of the primary functions of financial institutions in an economy is to —

• offer incentives to businesses for investing

• prepare taxes for individuals and businesses

• create investment portfolios for venture capitalists

• provide access to capital for people and businesses

Which of the following actions would improve a credit score?

• Paying off all debts

• Consolidating credit card balances

• Checking credit reports on a regular basis

• keeping credit card balances as high as possible