Fin Lit Final Exam

Austin has determined that the opportunity cost of saving money is more valuable than spending an extra $25 on entertainment every month. This is an example of his SMART financial goal being:

• Specific
• Realistic
• Time bound
• Measurable

Which of the following would most likely be considered a contractual expense?

• Cell Phone
• Food
• Entertainment
• Clothing

Individuals with more formal educational training usually have:

• higher estimated lifetime earnings
• lower personal satisfaction
• greater amounts of leisure time
• more comfortable work environments.

A mortgage is an example of:

• close-end credit
• open-end credit

When someone has passed an initial credit history check, they are:

• approved
• pre-approved
• accepted
• pre-accepted

A fee charged if the credit card account balance goes over the set credit limit is called:

• over-the-top fee
• over-the-balance fee
• over-the-counter fee
• over-the-limit fee

Fee charged when a credit card holder does not make the minimum monthly payment by the due date are called:

• over-the-limit fee
• late payment fee
• returned payment fee
• bounced checks

Having no credit history may be just as challenging to a consumer as having a negative history

• True
• False

Inquiries stay on your credit report for ____ years.

• 2
• 5
• 7
• 10

Closed accounts in good standing stay on your credit report for ____ years.

• 2
• 5
• 7
• 10