Brainscape's Knowledge GenomeTM

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


See full index

personal finance > test 4 > Flashcards

test 4 Flashcards

1
Q

what is an indicator of how well someone pays off their debt,not how well they handle money

A

A credit score

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

what is something that credit card commercials do not show you

A

people making monthly payments for years

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

are there certain things like renting a car or renting an airbnb that you can do without having a credit card

A

yes

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

what do banks and lenders use credit scores to determine

A

the likelyhood that someone is able to repay debt

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

when you look over your credit report, its important to make sure of what

A

no lines of credit have been open under your name without your knowledge

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

leasing a car is a method of financing where someone does what

A

make monthly payments on the car but does not own it

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

who pays higher intrest rates when making purchases with a credit card that your borrowing money with intrest

A

young people

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

why should you regularly check your credit report when you turn 18

A

signs of idenity fraud

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

what requires the borrower to put up collateral for a loan

A

secured loans

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

what stipulation comes when you sigh a car lease agreement and you have to pay a penalty for

A

go over the prestablished milage cap

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

what happens when ou finance a car

A

you will end up paying more than the stcker price

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

what do credit card compnies make the most profit from

A

charging intret to customers

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

are loans that directly help you advance in life acceptable loans

A

no

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

do the majority of americans live paycheck to paycheck

A

yes

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

what is the second foundation

A

get out of debt and stay out of debt

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

what is the smartest way to buy a car

A

buy it in cash

17
Q

what does the debt snowball method involve

A

paying debts from smallest to largest

18
Q

credit is a business that makes money for who

A

credit cards companies,lenders, banks

19
Q

what is the formula that determines a person’s FICO score

A

there history payed to lenders

20
Q

how you spend you money and give your money does what

A

is a reflection of your personal values

21
Q

give an example of an appreciating asset

A

a house

22
Q

what do predatory lenders get their reputation from

A

from charging high fees for loans and targeting desprate people

23
Q

what is an example of a depreciating asset

A

car

24
Q

what is your greatest wealth building tool

A

income

25
Q

credit cards that offer flashy rewards often charge you what

A

high annual fees

26
Q

what is the total amount of a car loan plus the taxes and fees

A

the principal

27
Q

what happens when you buy with crdit vs. debit

A

you typically spend more with credit than you would with cash

28
Q

explain why credit cards are a bad idea. how coukd this negativly affect your life

A

they are a bad idea since you will end up paying mor money in the long run leading you to increasing your debt

29
Q

what is the best way to avoid falling inot debt

A

cash

30
Q

list 3 ways the credit card industry makes money

A

intrest fees
annual fees
merchant fees

31
Q

what is it called when credit cards companies charge 2-3% fee for every purchase made with credit cards

A

merchant fees

32
Q

what is the danger of putting up collateral for a loan

A

you lose the asset if you fail to repay it

33
Q

what is the difference bewteen an appreciating asset and a depreciating asset? give an example of both

A

an appreciating asset goes up in value over time like a car while a depreciating asset losses value over time like a car

34
Q

explain the importance of good credit is a myth

A

because all credit is bad

35
Q

describe marketing tactics that the credit indusrty uses to trick people into getting into debt

A

offering low or zero interst , requiring only minimum monthly payments, and offering cash back and other rewards

personal finance (1 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions