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WorksheetsPersonal Financial Responsibility: Chapter 8 Review
Total questions: 30
Worksheet time: 15mins
Name
Class
Date
1.
Long-term debt is a loan that is payable over a period longer than a year.
a)
True
b)
False
2.
If a credit card company charges an annual fee, it will be charged regardless of whether the cardholder has used the card or carried a balance in the last year.
a)
True
b)
False
3.
Amortization is the process of dividing your debt obligation, plus interest, into increasingly smaller monthly payments over a set period of time.
a)
True
b)
False
4.
If something major happens to a leased car, such as engine failure, the lessee usually must pay for it.
a)
True
b)
False
5.
Many car buyers seek to obtain a pre-approved loan so that they know the maximum amount they will be able to borrow in advance.
a)
True
b)
False
6.
A lease payment on a car is typically much more than a monthly car loan payment.
a)
True
b)
False
7.
A landlord must keep tennants' security deposits in a separate account and refund any nonused portions.
a)
True
b)
False
8.
Debt represents future earnings already spent.
a)
True
b)
False
9.
It is desirable to keep the number of credit cards you have to a maximum.
a)
True
b)
False
10.
If you've already been preapproved for a car loan through your bank, you should not consider the finance offer presented to you by the car dealer.
a)
True
b)
False
11.
When you owe more on a car than it is worth, the loan is said to be
a)
ballooned
b)
upside down
c)
depreciated
d)
none of these
12.
When a rental agreement contains a purchase option at the end of the rental term, the renter is said to have
a)
refusal of first right
b)
a balloon option
c)
the right of first refusal
d)
a deferred-payment plan
13.
Which of the following types of lenders generally extends legal high-interest loans to consumers who may be ineligible for other types of low-interest loans?
a)
sales finance company
b)
consumer finance company
c)
mortgage company
d)
loan shark
14.
Which of the following is often related to a loan scam?
a)
rent-to-own agreement
b)
prepayment penalty
c)
advance-fee loan
d)
balloon payment
15.
Which of the following is true of an FHA mortgage loan?
a)
It allows for a smaller down payment
b)
It requires you to pay a monthly mortgage insurance premium
c)
It is backed by the Federal Housing Administration (FHA).
d)
All of these are true.
16.
When tenants decide to move out voluntarily, they generally must give a
a)
10-day notice
b)
30-day notice
c)
2-week notice
d)
60-day notice
17.
A rule of thumb for determining if you have an acceptable amount of installment loan debt states that it should not exceed
a)
20% of yearly take-home pay
b)
25% of yearly take-home pay
c)
30% of yearly take-home pay
d)
50% of yearly take-home pay
18.
Late fees and over-the-limit fees on your credit card bill can
a)
each cost you $35 or more
b)
cause the interest rate you are charged to rise
c)
affect your credit score in a negative manner
d)
all of these
19.
Which of the following is a justifiable reason for not refunding a tenant's security deposit?
a)
normal wear and tear on premises
b)
holes in the walls
c)
being noisy
d)
none of these
20.
To be legally binding, a contract requires __, which is something of value exchanged for something else of value.
a)
consideration
b)
consolidation
c)
trade-in
d)
grace
21.
The __ value is the highest price that property will bring on the open market.
a)
market
b)
equity
c)
refinancing
d)
grace
22.
Following graduation, you may want to __ your student loans so that you will have only one student loan payment to make each month.
a)
consolidate
b)
trade-in
c)
equity stripping
d)
grace
23.
Some loans start out with low monthly payments but then have a __ payment, which is a very large, lump-sum payment required at the end of the loan term.
a)
balloon
b)
trade-in
c)
consolidation
d)
consideration
24.
The __ period is the amount of time you have to pay your credit card bill without having to pay interest on your new purchases.
a)
grace
b)
consideration
c)
breach
d)
refinancing
25.
A contract __ occurs when you fail to perform something you agreed to do.
a)
breach
b)
grace
c)
error
d)
consolidation
26.
__ involves paying off an old loan with a new loan that usually has better terms, such as a lower interest rate.
a)
refinancing
b)
consolidation
c)
equity stripping
d)
sales finance
27.
If you have an existing car, you may be able to use it as a __ by applying its value to the down payment of a new care.
a)
trade-in
b)
refurbish
c)
sales finance
d)
consolidation
28.
__ is the unethical practice of extending a loan to a distressed homeowner who cannot afford the payments, resulting in the lender taking possession of the home.
a)
equity stripping
b)
sales financing
c)
loan sharking
d)
refinancing
29.
A(n) __ company often works closely with a seller of consumer goods, such as cars or household appliances, to make it easy for customers to arrange financing at favorable terms.
a)
sales finance
b)
equity stripping
c)
trade-in
d)
consumer finance
30.
Which of the following is NOT a right of a landlord?
a)
to inspect the property without notice
b)
to retain security deposits for damages caused by the tenant
c)
to receive rent in a timely manner
d)
to hire a property manager
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