What is the purpose of taxes?

Identify the INCORRECT statement.

When lenders lend money to borrowers, they charge an additional fee for the use of their money. What is this fee called?

Jason went to the grocery store to buy a gallon of milk for his mother. While waiting in the checkout line, he saw a display for a new chocolate-caramel candy bar, so he bought it, too. The candy bar purchase is an example of a/an:

David wants to buy a new car that costs $23,899, but only has $6,000 in cash. Since the car costs more than the amount of money he has, David must get a loan from a bank and pay interest on the remaining balance that he owes. Which personal money management term is explained in this example?

A record of the borrower’s past loan and credit‐related

transactions.

When goods, services, and/or money is received in

exchange for a promise to pay back a definite sum of money at a future date.

A person or organization who makes funds available to

borrow.

Maintaining a reasonable amount of unused credit will create

Routinely paying bills late will create

Numerous credit applications in a short period of time will create

Checking credit reports annually to search for mistakes will create

Having many of the same types of credit accounts will create

A negative credit report may impact an individual’s ability to receive all of the following EXCEPT?

Which of the following is a possible consequence of having one's identity stolen

Individuals are most likely to require the services of a mortgage company when they want to

The disadvantage to using credit cards to pay for goods and services is that you

A credit card is the same thing as a debit card.

Credit can affect your ability to...

Match the type of fraud: Kyler learned her identity had been used during an arrest, but she hadn’t been arrested.

A payment card that allows you to borrow money from a bank to make purchases. The money must be paid back with applicable interest or fees.

A type of loan used to finance the purchase of real estate or a home.

An abbreviation for the interest rate charged on the balance of a credit card.

A numerical rating of your credit worthiness (how likely you are to pay off your debts). In the US, the most commonly used system is the FICO.

Something such as money that is owed to a lender.

The initial amount that is paid when something is bought using credit. They are usually provided at the time of purchase particularly when purchasing larger items, like a house or a car.

A type of credit score created by the Fair Isaac Corporation

A form of fraud. Thieves use another person's personal information in order to steal that person's money or gain access to other benefits.

Signing a lease or a loan along with another person in order to help guarantee that the lease or loan will be paid.

A record of a person's borrowing and repayment activity

The amount of money that you are able to charge to a credit card. If you exceed this, your purchase may not go through and you could be penalized.

A ___________ is a person who borrows money from others.

A _________ is a person or business that loans money to others.

Two disadvantages of credit are

Two advantages of credit are

The process of a lender taking something back (like a car) for failure to make payments

a long term rental agreement on a car

A legal procedure for dealing with debt when an individual or business cannot repay what they owe

Process by which the holder of a mortgage sells the property of a homeowner who has not made interest and/or principle payments on time as stipulated in the mortgage contract.

This is credit that you use to borrow money and promise to repay in equal amounts over a period of time

What is a credit score?

Which of these terms could be used to describe debt in the form of a mortgage or car loan? (Choose all that apply.)

The standard Internal Revenue Service (IRS) form that individuals can use to file their annual income tax returns

The set amount of money, per dependent, you can subtract from your taxable income

Taxes paid by employees to federal and state government through a direct deduction from their paycheck

A standardized dollar amount that reduces your taxable income, specifically for individuals who do not receive additional benefit by itemizing their deductions into medical expenses, donations, etc.

The amount of income that is used to calculate an individual's or a company's income tax due

Tips

Wages

Social Security Benefits

Earnings from Self-Employment

Corporate Dividends

A financial product purchased by many people facing a similar risk to protect against the risk of larger losses

The money paid to an insurance company to purchase a policy

The out‐of‐pocket money paid by the policyholder before an

insurance company will cover the remaining costs attributed to the loss

A contract between the insurance company and the insured

that states the exact terms of the policy including what risks are covered and how much will be paid for any losses

Which is the correct type of insurance that would be used: Sally is not feeling well so her mother takes her to the doctor. The doctor tells her she has strep throat, gives her medication, and sends her home to recover. What type of insurance would be used in this case?

Which is the correct type of insurance that would be used: Joey’s father is in a car accident and cannot work. What type of insurance replaces his father’s earnings?

Which is the correct type of insurance that would be used: David’s mother is killed in an automobile accident. What type of insurance would provide his family financial support to cover the paid and unpaid work his mother performed?

Liability insurance covers accidental harm that may be caused to other people or property.

A beneficiary is the individual who takes out the life insurance policy.

The purpose of insurance is to make you financially better off than you were before the event occurred.

This type of insurance should pay for damages if a tree that goes through your roof.

This is the minimum required by law, only repairs the vehicle you hit, not your own