AnswersPersonal Finance - EL3403Understanding Credit

Understanding Credit — Unit test Answers

8 verified answers2 views
1
Free Preview

A person’s credit score can range from a low of 300 to a high of what number?

Answer not available
2
Free Preview

Fiona wrote a check to the veterinarian for $89.56. She’ll use the check register to record her transaction. What will be her new balance?

Question illustration
$
$2,458.94
$
$2,484.83
$
$2,549.55
$
$2,575.44
3

Jessica is trying to get a credit card. She has a credit score of 790. How is Jessica’s lender likely to view this credit score?

J
Jessica is low risk and will pay her outstanding balances on time.
J
Jessica is low risk but will not pay her outstanding balances on time.
J
Jessica is high risk and will pay her outstanding balances on time.
J
Jessica is high risk but will not pay her outstanding balances on time.
4

Which is considered a good credit practice?

A
Use the credit card with the highest interest rate.
B
Make late payments.
C
Pay more than the minimum amount that is due.
D
Borrow more than one can afford to repay.
5

Which information can be found on a person’s credit report? Check all that apply.

A
an unpaid utility bill that has been given to a collection agency
B
the person’s credit rating
C
the person’s yearly income
D
the person’s social security number
E
an inquiry from a bank that requested the person’s credit report
F
the person’s education level
6

Aliyah made a payment in the amount of $47.93. She’ll use the check register to record her transaction. What will be her new balance? Do not use commas in your answer.$

Question illustration
Answer not available
7

In which column on a check register should the total current amount in the account be entered?

D
Deposit
T
Transaction
B
Balance
D
Debit
8

Marcus deposited his paycheck in the amount of $625.84. He’ll use the check register to record his transaction. What will be his new balance? Do not use commas in your answer. $

Question illustration
Answer not available
9

In which column on a check register should the total current amount in the account be entered?

A
Deposit
B
Transaction
C
Balance
D
Debit
10

A down payment is usually what percentage of the asking price of a home?

A
0–5 percent
B
5–20 percent
C
20–50 percent
D
50–75 percent
11

A person’s credit score can range from a low of 300 to a high of what number?

Answer not available
12

Aliyah made a payment in the amount of $47.93. She’ll use the check register to record her transaction. What will be her new balance? Do not use commas in your answer.$

Question illustration
Answer not available
13

Rita has a credit card that gives a 6% discount on every purchase. The annual percentage rate on the card is 15%. She is purchasing a digital camera for $300.If she purchases the camera and only pays $80 on the first month’s bill, how much will she need to pay off the balance the following month?

A
$199.47
B
$204.53
C
$220.00
D
$222.75
14

Which is most likely to happen to consumers with good credit? Check all that apply.They can be approved for loans.They are denied a mortgage.They can receive lower interest rates.They are denied an unsecured loan.They can use credit in emergencies.They are forced into high interest rates.

A
They can be approved for loans.
B
They are denied a mortgage.
C
They can receive lower interest rates.
D
They are denied an unsecured loan.
E
They can use credit in emergencies.
F
They are forced into high interest rates.
15

The charts show the effect of an interest rate adjustment on an adjustable-rate mortgage.The change in interest rate shown in the charts resulted in

Question illustration
A
a lower interest rate.
B
a higher principal.
C
a higher monthly payment.
D
a higher number of payments.
16

Companies report people to credit agencies if they

A
fail to pay their bills on time.
B
borrow too much money.
C
fail to use different types of credit.
D
use large amounts of credit at once.
17

A mortgage is a legal agreement between a borrower and a

A
city agency.
B
family court judge.
C
wealthy relative.
D
bank.
18

Which describes the difference between a personal loan and a credit card?

A
Credit cards offer lump sums of money, while personal loans set a maximum amount a person can borrow.
B
Credit cards are secured loans for large amounts, while personal loans are unsecured for small purchases.
C
Personal loans offer lump sums of money, while credit cards set a maximum amount a person can borrow.
D
Personal loans are secured for small purchases, while credit cards are unsecured loans for large amounts.
19

This table can be used to organize Gigi’s credit card balances and payments over 6 months. The annual percentage rate on the credit card is 14%.Gigi’s Credit Card PaymentsMonthBalancePaymentInterest RateInterest Charged1$650$3000.01167$4.082$354.08$500.01167 3$307.63$500.01167 4$260.64$500.01167 5$213.10$500.01167 6$165$500.01167 What is the amount of interest charged for the first 6 months?$

A
16.34
B
17.34
C
18.34
D
19.34
20

Marcus deposited his paycheck in the amount of $625.84. He’ll use the check register to record his transaction. What will be his new balance? Do not use commas in your answer. $

Question illustration
Answer not available

Did you find these answers helpful?

More from this Course

Quiz
21 verified answers

Unit Test

Quiz
23 verified answers

Unit Test

Quiz
20 verified answers

Unit Test