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WorksheetsUnit 5 Review
Total questions: 54
Worksheet time: 46mins
Credit can be defined as a tool to...
allow you to purchase things without paying for them
let you make a quick purchase when you don't have enough money
provide guilt free money
to buy something now and pay for it later
Which of the following statements is true about Debt?
Debt is the amount of money you have in your checking account.
Debt is the total amount of money a person owes to others
Debt is the ability to borrow money.
Debt is the amount of money you have in a savings account.
Which of the following represents risks of using credit (choose all that apply)?
Overspending
Overwhelming Debt
Legal Action
Identity Theft and Fraud
Using Credit is never a wise thing to do...
True
False
Only adults are at risk for identity theft...
True
False
The amount of money you borrow before interest is the....
Principal
Interest
Rate
Time
The amount you pay to use the money you borrow is the...
Principal
Interest
Rate
Time
The three elements of the Simple Interest Rate Formula are (choose all that apply)
Principal
Interest Rate
Cost
Time
The type of interest rate that stays the same for the life of the loan or account is....
Fixed Interest Rate
Introductory Interest Rate
Variable Interest Rate
What is an introductory apr rate?
An introduction to the credit card
A fee charged
The interest rate of a specified period.
A lower 'teaser' rate offered for a short period to tempt you to borrow
The annual percentage rate APR is the interest rate calculated in a consistent way to make it easier to compare borrowing options
True
False
A way to calculate an average payment over the life of a loan is the
Amortization Calculation Formula
Annual Percentage Rate
Simple Interest Formula
The type of interest rate that changes at specified times is....
Fixed Interest Rate
Introductory Interest Rate
Variable Interest Rate
Annual Fee, Cash-Advance Fee, Over-the limit Fee, Grace Period, and Other Fees are typically elements of...
Credit Card/ Cerdit Line Terms
Installment Loan Terms
Loan Term, Origination Fee, Prepayment Penalty, Down Payment, and Discount points are typically elements of...
Credit Card/ Cerdit Line Terms
Installment Loan Terms
The amount of time you are obligated to make payments on a loan is the...
Loan Term
Loan Rate
Interest
Principal
The theft of your identification documents and/or the hacking of your online personal files without your permission is
identity theft
False identity
identity fraud
When your stolen personal information is used to make purchases, withdraw cash, or set up new accounts without your approval, you are a victim of
identity theft
False identity
identity fraud
In the Triple-D approach to fraud prevention , which step involves filing a police report if you have been a victim of fraud
Deter
Detect
Defend
Which of the following represents one of the 6 elements needed to make a contract binding (choose all that apply)
offer
acceptance
fairness
consideration
A loan agreement represents a legally binding contract, that can be enforced by law, including courts.
true
false
Which of the 5 Cs of credit is represented by the following: owning a boat?
Collateral
Capital
Character
Capacity
Credit History
Which of the 5 Cs of credit is represented by the following: Having more monthly earnings than necessary to cover your expenses
Collateral
Capital
Character
Capacity
Credit History
Which of the 5 Cs of credit is represented by the following: Having a long history of paying your credit cards on time, and not spending past their limits
Collateral
Capital
Character
Capacity
Credit History
Your Credit Report represents the most complete representation of you and your reputation to lenders
True
False
SSEPF2d
SSEPF5
SSEPF2a
SSEPF4c
John borrows $100 dollars from Ed. They agree that John will pay back the loan in two months at a rate of 10% monthly. If John pays back exactly $120, the the interest was
Compounded
Simple
The part of a loan that consists of the original amount of money borrowed
Principal
Credit History
Annual Percentage Rate (APR)
Interest
Which of the following have an impact on your credit score?
How much current outstanding debt you have (amount owed)
Length of credit history (how long you've used credit)
Payment history
All of the above
An example of a REGRESSIVE TAX is .....
Property Tax
Sales Tax
Income Tax
An example of a PROGRESSIVE TAX is a .....
Property Tax
Sales Tax
Income Tax
An example of a PROPORTIONAL TAX is a .....
Property Tax
Sales Tax
Income Tax
When you need to use your insurance, the amount you are expected to "Chip in" before insurance goes into effect is called a
Contribution
Deductible
Payout
Premium
Having a college degree often results in
Higher worker earnings
Compound interest
A lower discount rate
A lower credit score
A person that wishes to invest and is looking for the LEAST risk possible should choose which option?
mutual funds
progressive taxes
stocks
savings accounts
A credit union...
is a financial institution that focuses on taking deposits and using them to fund mortgages.
is a non-profit institution owned by its members and provides financial services to its members.
offers a broad range of deposit account and gives loans to individuals and businesses.
is a financial institution for students only
What is the price paid for the use of borrowed money?
Principal
Interest
Default
FDIC
Certificates of Deposits are ......
issued by financial institutions and are the most common form of investments.
issued by the federal government and are very attractive forms of investments
issued by state and local governments and are regarded as a safe, tax exempt investment.
issued by corporations and are usually used for long term investments.
Compound interest is ...
interest on the principal amount
interest on the principal plus any earned interest
interest on all the money
interest on your home
The ability of an individual to protect against financial loss is known as
risk management
life insurance
financial coverage
collusion
Investments where a financial company diversifies and makes investments decisions on behalf of investors?
Mutual Funds
Common Stock
Municipal Bonds
Retirement pensions
Rational Choice is a choice that is made when....
the costs outweigh the benefits
the benefits equal the costs
the benefits outweigh the costs
the costs out weigh everything
High risk investments pay _______________ rates of return than low risk investments.
lower
higher
the same
different
