WorksheetsWork, Power, & Machines TEST
Total questions: 50
Worksheet time: 1hrs 12mins
How do people get trapped in the payday loan cycle?
Customers usually only need to borrow money once
Lenders typically give loans out with a low APR
Customers may visit several payday loan lenders to get $
Lenders typically give out long-term loans
True or False: Most borrowers use payday loans to cover emergencies.
True
False
If you decide to pawn an item of yours, which of the following is TRUE?
You will not pay extra charges besides the APR
The loan amount is usually = to the value of your item
You cannot sell an item to a pawnshop
If you don't come back for you item, the pawnshop keeps it
What is a disadvantage of a rent-to-own transaction?
A credit check is not always necessary
There are usually no down payments needed
The consumer ends up paying more than the value of the item
The item may be delivered to your house or apartment
Trained professional planner who give overall investment advice based on your goals, age, lifestyle, and other factors
financial planner
certified public accountant
real estate agent
insurance agent
An intentional deception to get an unfair gain. Can apply to many different contexts - insurance, voting, healthcare, bank account, taxes, etc.
scam
fraud
predatory lending
payday loan
An activity that results in an easy profit for one person and a financial loss for the other person
scam
fraud
predatory lending
personal loan
The crime of obtaining someone else's personal data and using it for financial gain or to defraud or deceive
scam
restitution
predatory lending
identity theft
A small loan, offered through a business, lent at a high interest rate, and meant to be paid as soon as you receive your next paycheck
personal loan
predatory lending
payday loan
restitution
Loan granted from one individual to another, where usually the people know one another and jointly decide on loan terms
personal loan
predatory lending
payday loan
restitution
A business that rents household items at extremely high interest rates with no down payment and no credit check; completing all the payments on time allows the consumer to eventually own the item
predatory
rent-to-own
predatory lending
restitution
The act of lending money at an unreasonably high interest rate, making repayment excessively difficult, or charging excessive fees such that the debtor is trapped in a cycle of debt
personal loan
predatory lending
rent-to-own
payday loan
An independent agency of the U.S. government who enforces antitrust laws and the promotion of consumer protection
Federal Trade Commission (FTC)
Better Business Bureau
A (a) is when a debtor is unable to meet the legal obligation of debt repayment.
Predatory lending practices actually made the mortgage backed investment riskier.
true
false
What was the housing bubble?
A rapid increase in housing prices driven by irrational decisions.
A steady increase in housing prices driven by predatory lending.
A rapid decrease in housing prices driven by low interest rates.
A rapid rise in interest rates driven by demand.
How do people get trapped in the payday loan cycle?
Customers usually only need to borrow money once
Lenders typically give loans out with a low APR
Customers may visit several payday loan lenders to get $
Lenders typically give out long-term loans
Who are the primary lenders of title loans?
Local banks and financial institutions
Mom and Pop lenders
A few private institutions
Large, publicly traded companies
What strategies do most predatory lenders use to attract customers?
Short-term loans
High interest rates
Quick access to cash
Credit score is not taken into consideration
True or False: The population size of predators are equal to the population size of prey.
True
False
Who helps you buy a home?
Inspector
Insurance Agent
Real Estate Agent
Santa
An estimate of how much property is worth
Rate
Income
Appraisal
Tax
The price you pay upfront usually 20% of the loan.
Morgage
Price per share
down payment
loan
Charges involved in finalizing a home purchase
Closing Costs
opening cost
return on investment
break even point
An estimate of how much property is worth
Appraisal
Selling
Buying
money owed to another person or company
Debt
Depreciation
Default
Lien
credit that automatically renews whenever a payment is made to reduce the debt
Revolving Credit
Appreciating Asset
Installment Credit
Depreciating Asset
a legal claim against (or right to own) an asset until the debt (loan) is repaid
Lien
Default
Term
Depreciation
failure to repay a loan on time
Default
Term
Depreciating Asset
Debt
a loan for a fixed amount of money that‘s paid back in monthly installments
Installment Credit
Revolving Credit
Term
Collateral
A plan on how to spend and save money
Saving
Spending
Budget
Income
Money that comes from outside sources such as a job or career
Income
Wage
Salary
Investments
Basic needs that a household must pay for such as housing, groceries, healthcare, utilities, etc.
Spending
Saving
Expenses
Budget
Setting money aside to use in the future
Budget
Expense
Income
Saving
Which of the following is not a basic need?
food
utilities
vacation
housing
A detailed budget will include _______, expenses and savings.
salary
retirement
wage
income
It is not important to consider saving money for the future.
True
False
