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If you lose your debit card and notify your financial institution within two days, how much are you potentially liable for? - ✔✔Anywhere between $50 to $ When you select a financial services provider, what are major factors to consider? - ✔✔Convenience; Service; Interest rates (borrowing); Fees What type of financial services does a credit card company provide - ✔✔Short-term lending What type of financial services does a investment company provide - ✔✔Mutual funds, money market funds What type of financial services does a life insurance company provide - ✔✔Life Insurance, savings and investments What type of financial services does a mortgage company provide - ✔✔Loan for house What type of financial services does a payday loan company provide - ✔✔Cash advancements with high interest rates Which of the financial services listed in Question 3 will likely provide the most expensive access to funds? - ✔✔Payday Loans What type of institution is most likely to provide a full range of financial services, including checking, savings, and lending? - ✔✔Commercial Bank Ed needed some cash quickly, so he received a short-term loan based on the value of an old ring. Where did he go? - ✔✔Pawnshop
What would be considered a drawback of a savings account? - ✔✔Low returns; Withdrawal Limitations; Missed Opportunities A certificate of deposit that has different interest levels based on the stock market performance is called a - ✔✔Stock Indexed CD A savings plan requiring that a certain amount be left on deposit for a stated time period to earn a specified interest rate - ✔✔A certificate of deposit usually earns interest only if the account stays above the required amount - ✔✔An interest-earning checking account A savings account offered by banks, savings and loan associations, and credit unions that requires a minimum balance and has earnings based on market interest rate. - ✔✔A money market account A mutual fund that invests in short-term debt securities, such as commercial paper, banker's acceptance, repurchase agreements, T-bills, and negotiable CDs. - ✔✔A money market fund Previously called a passbook, or statement accounts, usually involves a low or minimum balance and allows you to withdraw money as needed. - ✔✔A regular savings account Earnings on savings can be measured by the __________ - ✔✔Rate of Return Earning interest on interest is called ___________________ - ✔✔Compounding Interest The Truth in Savings Act requires financial institutions to disclose the _____________________________________ on savings accounts. - ✔✔Annual Percentage Yield (APY) What does the term liquidity mean? - ✔✔Quick availability of cash
If you miss payments on a home equity loan, you can lose your - ✔✔home What does the term "convenience user" mean as it pertains to credit? - ✔✔Somebody who pays it off when the bill comes in; For convenience so that they don't have to carry cash Experts suggest that the debt payments-to-income ratio should be a maximum of - ✔✔28:36 (20% of less) How do you calculate the debt-to-equity ratio? What loans are not to be included? - ✔✔Total liabilities/Net worth = Debt-to-equity ratio (Home Loans should not be included) Should be less than 1. FICO scores generally range from - ✔✔ 350 - 850 What steps can you take if your credit application is denied? - ✔✔Find out why you were denied (contact credit bureau); Work on making payments on time/paying on stuff What information does a credit report include? - ✔✔# of accounts you have, whether you pay your bills on time, how much available credit your are using, any collections against you, amount of out standing debt, age of your accounts Name the three credit bureaus. - ✔✔Equifax, Transunion, Experian Name the only online source authorized to provide a free credit report each year at your request - ✔✔www.anualcreditreport.com Information about a personal bankruptcy may be reported in your credit file for - ✔✔10 years The APR is the percentage cost of credit on a(n) ______ basis - ✔✔annual
The minimum monthly payment on a credit card is the ___________amount you can pay and remain a borrower in _______________. - ✔✔smallest; good standing If you double the monthly payment for a credit card, the loan will be paid off in _________ than half time - ✔✔less What does the Consumer Credit Counseling Service do? - ✔✔provide debt counseling services for families and individuals with serious financial problems...sometimes charges a small fee to help pay administrative costs Personal bankruptcy can be filed under which section(s) of the U.S. bankruptcy code? - ✔✔Chapter 7 & Chapter 13 Define comparison shopping: - ✔✔process of considering alternative stores, brands and prices Define impulse shopping: - ✔✔involves unplanned purchasing, which can result in financial problems What is unit pricing? - ✔✔Unit Pricing = Standard unit of measurement. Allows you to COMPARE products. Coupons and rebates More store convenience → higher prices Ready-to-use products → higher prices Large is not always the best buy - check unit prices "Sale" prices not always a savings Online sources can save time created by the seller or manufacturer and has two forms: the full warranty and the limited warranty - ✔✔Express warranty covers only certain aspects of the product, such as parts, or requires the buyer to incur part of the costs for shipping or repairs - ✔✔Limited warranty
check issued by a financial institution...purchased by paying the amount of the check plus a fee - ✔✔Cashier's check purchased similar to a cashier's check from financial institutions, post offices, and stores - ✔✔Money order allow you to make payments when you are away from home...have to be signed at purchase and when you cash them - ✔✔Traveler's check type of endorsement form...just your signature, which should be used only when you are actually depositing or cashing a check, since a check may be cashed by anyone - ✔✔Blank endorsement type of endorsement form....consists of the words for deposit only, followed by your signature, which is especially useful when you are depositing checks - ✔✔Restrictive endorsement type of endorsement form....allows you to transfer a check to someone else with the words "pay to the order of" followed by the name of the other person and then your signature - ✔✔Special endorsement
