AnswersPersonal Finance - EL3403Financial Responsibility

Financial Responsibility Answers

10 verified answers2 views
1
Free Preview

Which statement describes a disadvantage of Marnie paying a bill by telephone with a credit card or a debit card?

A
Marnie will not have to find a stamp and a mailbox.
B
Marnie will have to share her card account information.
C
Marnie’s bill is paid immediately.
D
Marnie may be eligible for a discount.
2
Free Preview

The chart describes four situations involving financial responsibility.Financial ResponsibilityPersonFinancial DecisionsHallieHas multiple loans at the same timeHaydenHas more income than the amount of debtAlisonMade payments less than the minimum amount dueJoelMade late payments several times before the bill was paidWhich person is financially responsible?

A
Hallie
B
Hayden
C
Alison
D
Joel
3

Frank is worried about identity theft. He does not like to give access to his checking account to anyone but the bank. What is the best option for him to pay his bills?

A
Frank should telephone in his payment to the company.
B
Frank should pay his bill online.
C
Frank should set up automatic withdrawals for the company he is paying.
D
Frank should mail a check to the company.
4

Which is a short-term consequence of making a late payment on your bill?

A
It will be harder to buy a house because it affects your credit history.
B
There will be a late fee added to the bill.
C
It will be harder to secure a new loan at a low rate.
D
The bank will charge a fee for having a negative balance.
5

Veronique and Lily each bought a piece of luggage that had the same price in different stores. The table below shows how they will pay for the item. Payment for PurchasesNamePayment TypePayment Amount (Including Finance Charges)Number of Months to Pay for ItemVeroniqueStore financed$2510LilyCredit card$357Who made the better financial decision and why?

A
Veronique because her payments are lower.
B
Veronique because her final cost, including finance charges, is less than Lily’s.
C
Lily because she is paying off her purchase sooner.
D
Lily because her final cost, including finance charges, is less than Veronique’s.
6

Ted has $55.00 in his pocket. Which purchase will he be able to pay for with cash?

A
two books for $29.95 each
B
headphones for $29.99 and a portable speaker set for $30.95
C
an MP3 player for $35.99 and a $20.00 gift card for downloading music
D
three books for $16.99 each
7

Jaina and Tomas are being considered as new tenants in an apartment. The landlord looks at their creditworthiness because he wants to be sure his new tenant pays the rent on time and in full. The table below summarizes the information that was on their applications.Application informationQuestionsJainaTomasHow many years have you had your job?52What is your monthly salary?$1,850$2,500How many credit cards do you have?41How much debt do you have?$13,000$7,000How many times were you late with payments on credit cards in the past year?51Who will the landlord decide to be more creditworthy and why?

A
Tomas because the ratio of his debt to income is less.
B
Jaina because she has had her job longer, which makes her look more stable.
C
Jaina because she has more credit cards available to her.
D
Tomas because he makes more money per month.
8

Which is a possible benefit of having a good credit history?

A
getting a high interest rate on a credit card offer
B
obtaining a low interest rate on a loan
C
obtaining a savings account
D
having a paycheck garnished
9

George’s parents are going on a cruise and are concerned about paying their bills while they are gone because they will not have the usual means of communication. What is the best payment method for them to use while they are gone?

A
telephone
B
online payment
C
mail
D
automatic withdrawal
10

Which is a long-term consequence of making late payments on your bills?

A
It will be harder to secure a new loan at a low rate.
B
The balance in your checking account will be negative.
C
There will be a late fee.
D
The number of payments will increase.
11

What might you expect to find out about people who are described as credit risks?

A
They are usually given a low interest rate.
B
They have a history of not making their payments on time.
C
They find it easy to get a loan from the bank.
D
They have a history of paying in full each month.
12

Jaina and Tomas are being considered as new tenants in an apartment. The landlord looks at their creditworthiness because he wants to be sure his new tenant pays the rent on time and in full. The table below summarizes the information that was on their applications.Application informationQuestionsJainaTomasHow many years have you had your job?52What is your monthly salary?$1,850$2,500How many credit cards do you have?41How much debt do you have?$13,000$7,000How many times were you late with payments on credit cards in the past year?51Who will the landlord decide to be more creditworthy and why?

A
Tomas because the ratio of his debt to income is less.
B
Jaina because she has had her job longer, which makes her look more stable.
C
Jaina because she has more credit cards available to her.
D
Tomas because he makes more money per month.
13

Which is a long-term consequence of making late payments on your bills?

A
It will be harder to secure a new loan at a low rate.
B
The balance in your checking account will be negative.
C
There will be a late fee.
D
The number of payments will increase.
14

George’s parents are going on a cruise and are concerned about paying their bills while they are gone because they will not have the usual means of communication. What is the best payment method for them to use while they are gone?

A
telephone
B
online payment
C
mail
D
automatic withdrawal
15

Which person made the best payment decision for their preferences?

A
Sean decides to pay his bills online because he does not like the inconvenience of finding stamps and mailing his bills.
B
Maria decides to pay her bills by mailing a check because she wants the payment to be credited in the shortest amount of time.
C
Jonah decides to pay his bill by telephone because he wants to protect his account information.
D
Shawna decides to set up automatic withdrawals to pay her bills because she does not want to have to remember to keep enough money in her checking account.
16

Shondra is thinking of making payments for her laptop by setting up automatic withdrawals with the store. What must Shondra consider before she decides to pay with automatic withdrawals?

A
Shondra should be sure she will remember to call the store each month to make the payment.
B
Shondra should check her credit history to be sure she has a good credit score.
C
Shondra should be sure she will have enough in her account to be able to make the monthly payments.
D
Shondra should consult with a credit counseling service.
17

Omar is having trouble paying his rent and making minimum payments on his student loan and credit cards. What should Omar consider doing to improve his situation?

A
Omar should apply for a personal loan.
B
Omar should get budgeting advice from a consumer credit counselor.
C
Omar should apply for another credit card to buy food with.
D
Omar should make less than the minimum payments each month.
18

Frank is worried about identity theft. He does not like to give access to his checking account to anyone but the bank. What is the best option for him to pay his bills?

A
Frank should telephone in his payment to the company.
B
Frank should pay his bill online.
C
Frank should set up automatic withdrawals for the company he is paying.
D
Frank should mail a check to the company.
19

The chart describes how four of Susan’s friends handle their money.Handling MoneyPersonDescription of SpendingSylviaShe uses her whole paycheck to buy food and necessities and pay the minimum amount on her bills each month. Then, she buys new clothes and pays for them with a credit card.NancyShe uses her whole paycheck to buy food and necessities and then takes a trip each month, which she pays for by adding to a personal loan with her credit union.FionaShe buys food and necessities and pays more than the minimum due on her bills each month. She goes out with her friends using some of the money that is left over in her checking account.UliShe buys food and necessities and pays the minimum amount on her bills each month. She goes out with her friends using the money that is left over in her savings.Which person is most creditworthy?

A
Nancy
B
Sylvia
C
Fiona
D
Uli

Did you find these answers helpful?

More from this Course

Quiz
27 verified answers

Financial Responsibility

Quiz
15 verified answers

Financial Responsibility

Quiz
11 verified answers

Financial Responsibility