Final Exam Review

Which of the following is not a credit bureau?

• Experian

• Equifactor

• Transunion

• Equifax

What is a finance charge?

• The cost of borrowing money, including interest and fees

• The amount of money a company spends on advertising

• The price of a stock or bond at a given time

• The fee charged for using a credit card at an ATM

What is Experian Boost?

• A credit score improvement tool that allows consumers to include utility and cell phone bill payments in their credit history

• A financial service that provides investment advice

• A method for calculating the interest earned on a savings account

• A type of bond that pays a fixed interest rate

What is diversification?

• The act of repaying a loan in full before due date

• Concentrating investments in a single asset for maximum return

• The process of buying and selling stocks on the stock market

• Spreading investments across different assets to reduce risk.

Self-employed individuals pay a self-employment tax. What are the two taxes that are included in it?

• Social Security and Federal Tax

• Federal and State Tax

• Federal and Medicaid

• Social Security and Medicare

What type of risk would it be to invest in a mutual fund?

• High Risk

• Medium Risk

• Low Risk

• Systematic Risk

What is the largest factor in determining your credit score?

• Credit Utilization

• Employment History

• Payment History

• Level of Education

Amy gets paid $20/hour and last week she worked 40 hours plus an additional 5 hours in overtime. Including overtime pay, what was her total gross pay for the week?

Formula: Pay per hour X number of hours worked (including overtime)

• $800

• $950

• $900

• $625

Gentry just took out a $5,000 loan that has a 24 month term. His payment is $300/month. What is the total amount of interest that he will pay on this loan?

Formula: monthly payment X monthly term–loan amt.

• $2,200

• $10,000

• $3,600

• $5,000

Ava has a credit card balance of $4,000 and is charged 25% interest. What is annual dollar amount of interest does that translate to?

Formula: Credit card balance X interest rate

• $1,000

• $800

• $1,500

• $400