WorksheetsChapter 24 - Credit & Other Finances
Total questions: 20
Worksheet time: 10mins
People who buy goods and services from a seller are:
Debtors
Consumers
Creditors
Loan sharks
Which of the following is the best reason why someone would need a “cosigner” on a loan:
If you have no credit or poor credit history
All banks require this for first time borrowers
A cosigner simply acts as a witness to the contract
Only needed if you are a minor
Janie found a checkbook in the Walmart parking lot. She decided to take it into the store and purchased a $500 TV with one of the checks, signing the check owner’s name when paying. This illegal action is called:
Infringement
Loan Sharking
Usury
Fraud
For those people who have good credit, the bank sometimes allows them to continue making purchases up to a certain amount even after reaching a $0 balance. This is called:
Fraud protection
Usury protection
Overdraft protection
APR protection
Which of the following would be the direct result for spending more money than you have in your checking account?
The bank can repossess your assets (car, camper, boat) equal to the amount of how much you owe
All of the purchases made after $0 balance will be considered “credit” and interest will begin building
All of the purchases made after $0 balance will incur a $35 Non-Sufficient Funds Fee for each purchase
The bank will immediately shut down your account and will never let you open an account there in the future
In order to withdraw cash money from the bank, you must do which of the following:
A) Provide a personal identification number (PIN) using a debit cardA)
B) Provide a personal identification number (PIN) using a credit card
C) You can write a check written out to “cash”
D)Both A and C
What part of the check is the check identification number
C
D
E
B
What part of the check is the routing number (tells what banking organization it’s coming from)
A
C
D
E
If you lose a checkbook or it is stolen, you must notify the bank and ask them to cancel all of the checks in the book. This is called:
stop payment
non-sufficient funds
credit cancellation
fraud
With a lost or stolen credit card, your liability is limited to $_________ regardless of when you discover the loss:
You could be liable for all of the amount lost.
You are not liable for any loss
$100
$50
With a lost or stolen debit card, your liability is limited to $ ________.
You could be liable for all of it if reported after 60 days.
You could be liable for up to $500 if reported within 60 days.
You could be liable for nothing more than $50 if reported within 2 days
All of the statements above are true regarding a lost/stolen debit card
People who lend money or provide credit to others are called:
loan sharks
Debtors
creditors
loaners
When getting a “secured” line of credit, what does a person commonly have to do to demonstrate to the bank that they will get their money back upon failing to make the payments?
put up collateral (car, boat, etc.) that the bank can repossess
show them your good credit history
sign a contract promising to pay high interest rates
give them a cash down payment
If someone cannot make their loan payments, the debtor is considered:
In default
In fraud
In usury status
In loan denial
If you make a payment using a credit card for $100 and your monthly interest rate is 10%, how much would your balance be if you chose not to pay on the credit card for one month?
$101
$200
$150
$110
In regard to student loans, what is the main difference between government “subsidized” and “unsubsidized” loans?
subsidized-government pays interest while in school; unsubsidized- interest builds as soon as it is accepted
subsidized- no interest loan; unsubsidized- high interest loan
subsidized- high interest loan; unsubsidized- no interest loan
subsidized- you have to pay back once school if complete; unsubsidized- if you drop out, you don’t have to pay
In the state of Alabama, the interest rate limit that credit card companies can charge is 29%. Alexis, a resident of Alabama, was charged 31% for a new Visa card. She can sue Visa claiming they committed:
Usury
Fraud
Discrimination
Infringement
People or companies who often charge very high interest rates on loans are commonly nicknamed:
loan sharks
balloon payments
leg breakers
Usury sharks
A procedure through which a person places assets (things of value- car, boat, camper, tractor, house, etc.) under the control of a federal court in order to be relieved of debt:
Default Process
Bankruptcy
Usury Process
Credit Denial Process
A ruling against a party to a lawsuit who fails to take a required action (not showing up to court on court date; not filing appropriate paperwork) is called a:
Settlement
Garnishment
Default judgment
Repossession
