Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Personal Finance > Chapter 4 > Flashcards

Chapter 4 Flashcards

You may prefer our related Brainscape-certified flashcards:
Series 65 flashcards Series 63 flashcards Series 66 flashcards Series 7 Top-off Exam flashcards SIE Exam flashcards CFA flashcards Series 79 Top-Off Exam flashcards
1
Q

What is the largest purchase most consumers make that goes down in value?

A

A new car

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Who is the number one target of credit card companies?

A

Teens

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What is the most successfully marketed product in history?

A

Debt

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

MYTH: If I ____ I am helping a friend or relative

A

Loan money to a friend or relative

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

TRUTH: If you loan money to a friend or relative what will happen?

A

The relationship will be strained or destroyed

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What is co-signing?

A

Agreeing to pay the debt if the debtor doesn’t pay

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What is the problem with payday loans?

A

They have extremely high interest

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What is the lottery?

A

A tax on the poor and on people who can’t do math

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What is the best way to minimize the money lost on things that go down in value?

A

Buy slightly used

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Never take out more than a ____ fixed rate mortgage

A

15-year

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

ARM stands for

A

Adjustable Rate Mortgage

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What is an Adjustable Rate Mortgage?

A

A mortgage with an interest rate that changes based on market conditions

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Why are ARMs bad?

A

If your rate adjusts higher or you lose your job, your payment can quickly become too much for you to afford

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

MYTH: You need a ____ to rent a car or make a purchase online or by phone

A

Credit card

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

TRUTH: A ____ does whatever a credit card does

A

Debit card

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Why is it a bad idea to use a credit card with the intention to pay it off?

A
  1. When you use cash you spend 12-18% less

2. You may not be able to pay it off

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

What is the largest wealth-building tool?

A

Your income

18
Q

Debt Snowball

A

Listing you debts in order from smallest to largest. Pay minimum payments on all your debts except for the smallest one, and attack that one with intensity

19
Q

What is the fastest growing white-collar crime?

A

Identity theft

20
Q

Annual Percentage Rate

A

Cost of borrowing money on an annual basis; takes into account the interest rate and other related fees on a loan

21
Q

Depreciation

A

A decrease or loss in value

22
Q

Loan Term

A

Time frame that a loan agreement is in force, and before or at the end of which the loan should either be repaid or renegotiated for another term

23
Q

Credit card

A

Type of card issued by a bank that allows users to finance a purchase

24
Q

T or F: You must establish credit in order to buy a house

A

False

25
Q

T or F: If you are a victim or identity theft, you are only responsible for paying back half of the debt

A

False

26
Q

What cannot be done with a debit card but can be done with a credit card?

A

Go into debt

27
Q

What are forms of free money that aren’t repaid?

A

Scholarships and grants

28
Q

Work Study

A

A program that allows students to work part time while continuing their studies

29
Q

Associate’s Degree

A

An undergraduate academic degree awarded by colleges upon completion of a course of study lasting two years

30
Q

FAFSA

A

A form that is completed annually by current and prospective college students to determine their eligibility for financial aid

31
Q

Student loans are known by some people as

A

“Good Debt”

32
Q

T or F: A four-year degree is necessary regardless of what career you’re pursuing

A

False

33
Q

Types of Product Positioning

A
  1. Brand Recognition
  2. Color
  3. Shelf Positioning
  4. Packaging
34
Q

What is a significant purchase?

A

Over $300

35
Q

Buyer’s Remorse

A

When you wake up the next day and regret your purchase

36
Q

Opportunity Cost

A

Consider spending your money on something else

37
Q

Inflation

A

The persistent increase in the cost of goods and services or the persistent decline in the buying power of money

38
Q

Financing

A

To buy an item with credit; paying over time

39
Q

Latin term for “Buyer Beware”

A

Caveat Emptor

40
Q

What are needs?

A
  1. Food
  2. Clothing
  3. Shelter
  4. Utilities
  5. Transportation

Personal Finance (4 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions