Eco Unit 5 Practice Questions

Investments with high rates of return are generally accompanied with —

• no risk

• very little risk

• high levels of risk

• lower levels of risk

A long-term cost of owning a home includes —

• income taxes

• buying furniture

• landscaping upkeep

• insurance payments

One of the benefits of home ownership includes —

• building equity

• purchasing insurance

• paying property taxes

• funding large capital outlays

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

Loans that are obtained by offering an asset to guarantee repayment of the loan are considered —

• default loans

• secured loans

• unsecured loans

• repossession loans

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

Which type of bank account is not insured?

• Checking account

• Savings account

• Mutual fund

• Money market fund

An important financial detail to consider when purchasing a home includes —

• family size

• number of rooms

• time for commuting

• saving for a down payment

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

An important consideration to examine when deciding to declare personal bankruptcy is the —

• cost of using a collection agency

• amount of interest paid on credit cards

• impact it has on future credit options

• number of investments made in the last year