Study Guide #2

Which of the following can help you prepare your home for selling?

• Moving all of the furniture to the garage

• Painting worn exterior

• Closing the drapes when showing your home

• Trimming the grass around old vehicles in the yard

• Turning off the lights to conserve energy when showing your home

When you complain about your billing error, the creditor must acknowledge your letter within ____ days.

• 10

• 20

• 30

• 60

• 90

Which of the following institutions is organized primarily to provide loans to purchase homes?

• Life insurance company

• Finance company

• Mortgage company

• Pawnshop

• Investment company

Which one of the following is often the source of the least expensive loan?

• Parents or family members

• Banks

• Savings and loan associations

• Finance companies

• Loan sharks

Which one of the following is not a danger signal of potential debt problems?

• Paying only the minimum balance due each month

• Receiving second or third payment notices from creditors

• Using savings to pay routine bills

• Repaying loans faster than required

• Depending on overtime and moonlighting to meet everyday expenses

Your friends and neighbors easily can get credit information about you.

• True

• False

Series EE U.S. Savings Bonds can be purchased:

• in increments of $25 only.

• for any amount above $25.

• for less than face value.

• in increments of $50 only.

• in whole dollar amounts only.

The most commonly purchased type of credit insurance is:

• credit life insurance.

• credit accident insurance.

• credit health insurance.

• credit property insurance.

• credit disability insurance.

A regular savings account usually offers a higher rate of return to savers than a certificate of deposit.

• True

• False

A conventional mortgage usually has:

• a variable interest rate.

• a government guarantee.

• a balloon payment.

• equal payments.

• a payment cap.