WorksheetsRamsey Chapter 4 Review
Total questions: 23
Worksheet time: 11mins
What does a credit score measure?
How much money you have
How well you pay off debt
How well you budget your money
When you can retire
Who pays the highest interest rates on credit cards?
Rich people
Old people
Young people
Poor people
Which is the 4th Foundation?
Build Wealth and Give
Pay Cash for College
Get Out and Stay Out of Debt
Pay Cash for a Car
A home equity line of credit (HELOC) can be used for:
Home repairs or renovations
Anything you want!
Buying a new car
Paying off credit card debt
What is your greatest tool for building wealth?
Your credit score
Credit cards
The stock market
Your Income
Which is the 3rd Foundation?
Build Wealth and Give
Pay Cash for College
Get Out and Stay Out of Debt
Pay Cash for a Car
Which type of loan requires collateral?
Unsecured loan
Secured loan
Revolving credit
Installment credit
Which is NOT part of the FICO score (credit scores)?
Debt payment history
Types of debt
Your income level
Amounts owed on debt
Which is the 1st Foundation
Build Wealth and Give
Pay Cash for College
$500 Emergency Fund
Pay Cash for a Car
Which of the following can you NOT do with a debit card?
Rent a car
Go into debt
Book a hotel room
Reserve airline tickets
Making monthly payments on a car, but not owning the vehicle, is called:
Repossession
Renting
Leasing
Financing
Why should you check your credit report?
You shouldn't - unless you have debt
To check for errors or fraud
It's the law!
To improve your credit score
Which is the 5th Foundation?
Build Wealth and Give
Pay Cash for College
Get Out and Stay Out of Debt
Pay Cash for a Car
Credit cards that offer fancy rewards usually:
Charge annual fees
Don't charge interest
Only apply to rich people
Can't be used for daily expenses
Car leases usually charge a penalty if you:
Drive too fast
Leave the state
Go over the mileage limit
Get the car dirty
Which is the 2nd Foundation?
Build Wealth and Give
Pay Cash for College
Get Out and Stay Out of Debt
Pay Cash for a Car
The debt snowball method:
Ignores the debt until you go bankrupt
Pays off debt from smallest to largest
Only works in the winter
Pays of debt from largest to smallest
Which of the following is an acceptable form of debt (according to Ramsey)?
Payday loan
Car loan
Student loan
Mortgage
Predatory lenders take advantage of desperate people by:
Charging interest for loans
Selling their personal information
Holding their children hostage
Charging high fees to loan money
When people go into debt, who benefits the most?
Local businesses
People who use credit cards
Credit card companies and banks
Stock market investors
Which term represents the total amount of money owed on a car loan?
Interest
Sales Tax
Principal
Term
What is a secured loan?
A loan without collateral
A revolving loan
A loan with collateral
A safe loan with no interest
What are the 2 most common types of bankruptcy?
Chapter 7 and Chapter 13
Chapter 1 and Chapter 2
foreclosure and repossession
fixed and variable
