H&R Block Challenge Test 100% Verified Pass
interest rate
the amount you pay or earn for borrowing or loaning money
compound interest
interest on interest, basically interest plus time equals interest on your interest which equals increasing amounts of money
NSF fee
charged by the bank becau...
H&R Block Challenge Test 100% Verified Pass
interest rate
the amount you pay or earn for borrowing or loaning money
compound interest
interest on interest, basically interest plus time equals interest on your interest which equals increasing
amounts of money
NSF fee
charged by the bank because you do not have enough money to cover the check/charge
returned check fee
charged by the person/company you wrote the check/made the debit card charge because you did not
have sufficient funds to cover the check/charge
overdraft protection
feature you can get on a bank checking count that links your checking account to your credit
card/savings account. if you have check/charge bounce, the bank will charge you a small fee and use
your credit card/savings account to cover the check/charge
credit utilization
the percentage of your credit you are using
credit utilization percent
the total amount you owe divided by the total amount of your credit
which two factors determine 70% of your credit rating?
credit card utilization % and your payment history
what is a credit report?
how much you owe and how much credit you have. 7 year history of your payments and any loans you
have as well as any unpaid taxes you have been sued for (tax lien) and now have your wages taken right
out of your check which is bankruptcy
who is responsible for checking the accuracy of your credit report?
you
how long does negative information remain on your credit record?
7 years
what sort of jobs will possibly not hire you if you have a poor credit rating? why?
, financial industry because they fear you will steal or commit fraud. government and law enforcement
because they fear you will sell secrets and take bribes
how does your credit score affect your costs and interest rate for borrowing?
just like with scales, the higher your credit the lower your costs, the lower your credit, the higher your
costs. they work together in tandem.
what is the best way to build your credit?
get a credit card at 18, charge 19%-30% of your credit limit per month, pay it all off every month on
time.
inflation
an increase in the price of good or services. it is the tendency in a healthy economy for good and
services to gradually increase in price over time
mutal fund
a portfolio (basket/group) of stocks managed (bought, sold and held) by a real live person or a team of
people. higher fees and expenses
index fund
a portfolio of stocks typically managed by a computer program. it buys a particular kind of stock or a
slice of the whole stock market. very low fees. this is your best choice for retirement when you are
young because it is easy, cheap, and performs very well.
bonds
a relatively safe and cheap investment but it does not grow your money very well. good choice after you
retire. a tiny piece of government debt - a city, state, or the federal government will borrow money to
build something
stocks
tiny piece of a company
dividend
you portion of the proft the company made that year. older larger companies are the ones that pay
dividends
potential consequential for not having car insurance
car insurance: you'll pay for the repair of your car, any injuries you sustain. if it's your fault, you will pay
for the injuries of your passengers and all the people in the other car,a as well as repairs to the other
car. if the police are called, you'll be ticketed, your car may be impounded, and you may be arrested.
you can be sued for any damages you can't pay and the judges may garnish your wages until the money
is paid off. also, your car insurance increases dramatically if you allow it to lapse
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