Personal Finance Chapter 4 Exam Questions with Correct Answers

Personal Finance Chapter 4 Exam Questions with Correct Answers If a loan is not repaid, the of the borrower—used as security for the debt—could be sold by the lender. - Answer-collateral A(n) is a number that indicates the likelihood of someone repaying debt. - Answer-credit score A(n) reports on a person's credit history. - Answer-credit bureau The amount of time you have to pay back a loan is called the of the loan. - Answer-term When an item is worth less than what you owe on it, that's called . - Answer- negative equity Making fixed payments on a loan over a set period of time is an example of . - Answer-installment credit When an asset loses value over time, that's . - Answer-depreciation When you fail to repay a loan on time, you're referred to as being in . - Answer- default The first step of the debt snowball method is to list all your debts - Answer- smallest to largest Checking your credit report regularly can help you spot any signs of - Answer- identity theft Which of these is not one of the main credit bureau reporting agencies? A. Identifax B. Equifax C. TransUnion D. Experian - Answer-A With a debit card, you can do everything you can do with a credit card except what? A. Rent a car B. Stay at a hotel C. Go into debt D. Fly on an airplane - Answer-C A clothing store credit card is an example of what type of debt?A.Revolving credit B. Installment credit C. Personal loan D. Lien - Answer-A Which of the following is not factored into the loan payment on a new car? A. Term B. Equity C. Interest D. Principal - Answer-B