Personal Finance Pt. 1 (Exam 4) – Flashcards
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A trust has the purpose of:
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managing the assets of a person
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The CCCS aids families by:
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setting up a budget for them.
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Which of the following is a disadvantage of using credit?
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(It Is NOT "The use of credit allows for the purchase of goods even when funds are low")
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If you have a problem with your creditor, the best solution is to:
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solve your problem directly with the creditor.
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If you think that your bill is wrong, you should first:
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(It Is NOT "contact the local credit bureau and inform it of the billing error")
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Which bankruptcy allows a debtor with a regular income to extinguish his or her debts from future earnings or other property over a period of time?
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Chapter 13
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An all-purpose account that provides several services is a(n):
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asset management account.
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Which of the following is a deposit institution?
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A credit union
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Jake Skinner purchases a big screen TV on credit and will repay the loan with one payment at the end of 90 days. What type of credit did Jake use?
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Single lump sum credit
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Based on the following information, what amount would be subtracted from the bank balance side of a checking account reconciliation? Service charge $12, Outstanding checks $145, Interest $3.50, Deposit in transit $80
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(It Is NOT "$157")
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In a Chapter 7 bankruptcy, a debtor:
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is required to draw up a petition listing all assets and liabilities.
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Debt-to-equity ratio is:
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calculated by dividing total liabilities by net worth.
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If creditors add finance charges after subtracting payments made during the billing period, this is called the:
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adjusted balance method.
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An account at a commercial bank designed for people who want to earn a higher savings rate is a(n) __________ account.
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(It Is NOT "regular savings account")
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Which of the following is NOT a source that provides data to credit bureaus?
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Internal Revenue Service
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A certificate of deposit usually has:
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limited liquidity.
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If creditors give you no credit for payments made during the billing period, this is called the:
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previous balance method.
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If you borrow $100 at 10 percent simple annual interest and repay it in one lump sum at the end of one year, you will have to pay:
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$110.
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If your monthly net (after-tax) income is $1,500, what should be your maximum amount spent on credit payments?
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$300
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Kathy purchased a $2,000 digital TV from Young's Appliances. She will make 12 equal payments over the next year to pay for it. She is using:
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closed-end credit.
