Fin Lit Quiz 4

A credit card is a type of ___.

• loan

• savings account

• checking account

Which is not a credit bureau?

• FICO

• Equifax

• Transunion

Which are signs of financial trouble? (CHOOSE 2)

• you pay your credit card bills in full each period

• you exceed the limit on your credit cards

• you use savings to pay for food and other basic needs

Which would not be part of using a credit card?

• a down payment on a home

• a credit limit

• a grace period

The APR is the percentage cost of credit on a(n) ___ basis.

• annual

• weekly

• quarterly

Which are used to create your FICO credit score? (CHOOSE 2)

• using credit cards

• number of inquiries

• marital status

Personal bankruptcy is filed under which section(s) of the U.S. bankruptcy code?

• Ch. 7 & Ch. 13

• Ch. 11

The number of months in which living expenses can be paid if an emergency occurs is called a ___ ratio.

• liquidity

• savings

Given the following information, calculate the current ratio:

Liabilities = $24,500

Liquid assets = $4,900

Monthly credit payments = $800

Monthly savings = $760

Net worth = $72,500

Current liabilities = $1,600

Take-home pay = $2,300

Gross income = $3,500

Monthly expenses = $2,040

Mathematical Equivalence

ON

Given the following information, calculate the debt to equity ratio (also called debt ratio or debt to net worth ratio):

Liabilities = $24,500

Liquid assets = $4,900

Monthly credit payments = $800

Monthly savings = $760

Net worth = $72,500

Current liabilities = $1,600

Take-home pay = $2,300

Gross income = $3,500

Monthly expenses = $2,040

Mathematical Equivalence

ON