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WorksheetsChapter 8: Preserving Your Credit
Total questions: 40
Worksheet time: 21mins
A person who offers illegal loans at very high-interest rates and often uses intimidation to enforce repayment is called a what?
Predatory Lender
Loan Shark
Crime Lender
Illegal Shark
Which of the following is true about property managers?
They are required to live on-site
They pay half of your rent
It is their responsibility to arrange and provide repair and maintenance work
They do not have any responsibilities
Tom and Jerry share an apartment. Tom pays for the water and Jerry pays for the electricity. This is an example of:
Shared responsibility
Property management
Logistics
20/10 Rule
Which of the following best describes a legally binding agreement that specifies the rights and duties of each party to the agreement?
Unused Credit
Contract
Mortgage
Lease
You are buying a new car. To reduce the price that you have to pay, you give your old car to the dealership. This is an example:
Lease
Eviction
Trade-out
Trade-in
Which of the following is an example of an eviction?
Sally gets kicked out of the rented property for not following the rules
Mark gets charged extra money for buying a pet
Joe is required to pay for the maintenance of the property he rented
Emma owns a property and gives it out for rent
All of the following are living habits EXCEPT:
Eating breakfast every day
Brushing your teeth every morning
Exercising every day
Occasionally sleeping in
True or False: A person with whom you share living space, living expenses, and other responsibilities
True
False
What is a good example of shared responsibility between two roommates?
One person pays for everything
The roommates split the expenses equally
Each roommate hopes the other person pays the expenses
No one pays anything and they hope not to get kicked out
What is a debt repayment plan?
Type of credit that can be obtained quickly and easily but that often comes with high or hidden costs
A large lump-sum payment that must be paid at a set time
A strategy for paying off debt in a way that reduces the total interest paid
A written agreement that allows a tenant to use the property for a set period of time at a set rent payment
Select all that apply: Predatory lending is:
Unfair
Deceptive
Sneaky and misleading
Honest and highly recommended
True or False: You can be charged a fee if you repay a loan before the agreed-upon time
True
False
A mortgage is:
A loan used to purchase real estate
Loans that you have to pay back immediately
A short-term loan that often has high-interest rates, fees, and hidden taxes
A cash deposit toward the purchase price that is paid upfront
A mortgage term is usually:
15 - 30 years
35 - 40 years
5 - 10 years
10 - 12 months
A plan to limit the use of credit to no more than 20 percent of your yearly take-home pay, with payments of no more than 10 percent of monthly take-home pay is known as:
10/20 Rule
20/10 Rule
10/10 Rule
20/20 Rule
Which type of loan includes a large fee upfront, but can often turn out to be a scam?
Personal loan
Auto loan
Mortgage
Advance-Fee Loan
What is credit management?
Establishing and following an individual plan for using credit wisely
A cash deposit toward the purchase price that is paid upfront
The remaining credit available to you on current accounts
A short-term loan with a high-interest rate that uses the title on your vehicle as collateral
The remaining credit available to you on current accounts is called:
Leftovers
Unused credit
Unnecessary credit
Free money for you
A title loan is a short-term loan with a high-interest rate that uses _______ as collateral
Your weekly pay
Any expensive item that you possess
Your home
The title of your vehicle
The act of making a plan and carrying it out to ensure that an event takes place is called:
Excessive planning
Logistics
Lease
Credit management plan
True or False: A balloon payment is the same thing as a lease
True
False
Mary wanted to buy a house. She made a cash deposit toward the purchase price of the house. This is an example:
Down payment
Balloon payment
Easy access credit
Title Loan
Which of the following types of credit can be obtained quickly and easily but that often comes with high or hidden costs
Lease
Easy Access Credit
Mortgage Credit
Unused credit
Which is one of the responsibilities of the tenant?
To follow the lease or written agreement
To NEVER adopt pets
Never leave your home
To be careless with the rented space
Both the Tenant and the Landlord must….
Leave each other alone
Become best friends
Be neighbors
Abide by the lease
Before any eviction what must the landlord do?
Get you a goodbye present
Find you another place to live
Give you a notice
Pay your rent for you
When you start using credit you should do what?
Have a poor credit history
Use as much credit as possible
Use little credit
Forgot to manage your credit
Pay attention to the CURRENT economy when spending with credit
True
False
Choose one way to manage your credit effectively.
Examine credit offers
Don't adjust with the economy
Forget about your loans
In good economic times rates…
rise
drop
Choose the example(s) of risky loan practices.
Prey lending
Predatory lending
Loan Shark
Loan Dolphin
Which is not a financing option for purchasing a house.
FHA
VA
Conventional
Unconventional
You can lease a car.
True
False
Longer terms when using a pre-approved loan while getting a car means…
Lower payments
No payments
Higher payments
The same payments
In the context of housing finance options, FHA stands for what?
Federal housing administrations
Financial Housing Advertisement
Financing House Agreements
Flashy House Administration
How should you pay expenses with roommates?
With separate accounts
With joint accounts
Only one of you pays the bills
With both separate and joint accounts
True or False: A balloon payment is a large lump-sum payment that must be paid at a set time
True
False
Before moving into a new apartment, you and the tenant should:
Each signs a contract, which clearly states the terms and conditions
Promise each other not to fight
Shake hands and agree to follow the terms and conditions
Go out for coffee and talk about your feelings
Which of the following is a financially responsible decision?
Spend all of your money once you get your paycheck
Save up money for emergencies
Get tons of credits
Ignore any bills you get
Credit is:
Absolutely horrible
Something you should overload yourself with without considering the consequences
Helpful if used responsibly
Not helpful at all
