Unit 5/6 Test - Credit - Matthew Goldstein | Library

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I am a type of credit card that requires cardholders to make a security deposit equal to the credit limit on their account. Due to this deposit requirement, I am often a good choice for young people looking to establish a credit history. Which financial product am I?

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Each of the following financial products will help you build a credit history EXCEPT...

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Which of the following statements below is TRUE?

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Based on her current balance, how much credit does this cardholder have available to use?

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Which of the following statements comparing credit and debit cards is TRUE?

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Which of these statements best explains why it's often a good idea to pay more than the monthly amount due on an amortized loan?

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If you are having trouble making auto loan payments, and are really following a tight budget, which recommendation below represents the WORST advice?

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When loans are amortized, monthly payments are _ , while the interest portion of the monthly payment and the principle portion of the monthly payment _ over time.

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The shorter your term length, the _ your monthly payments, and the _ the total interest you will pay.

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Which of the following is true about fixed and adjustable-rate mortgages?

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Which of these credit payback strategies would lead to the HIGHEST interest charges?

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Elizabeth is considering buying a $30,000 car. Which of these financing options will likely lead to the LOWEST monthly payment?

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You have been working for five years after college and are ready to buy your first home. Homes in the area you want to live in cost $550,000. The biggest mortgage you can afford is $300,000. What is the down payment you will need to pay?

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Reading through a credit card disclosure (aka the Schumer Box), you see the APR for a specific card is set at 9.99% - 23.99%. Which statement is true?

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What is an advantage of using a credit card?

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Credit card disclosure: "Your due date is at least 25 days after the end of the billing cycle. We will not charge you interest on new purchases provided that you have paid your previous balance in full by the due date each month." Identify the true statement.

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You see on a commercial that OrangeCo is offering a credit card with a 5% cashback program for all cardholders. What is ONE question you might ask to evaluate how good this offer is?

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Amy and Chuck each buy a house in the same neighborhood for $250,000. Amy's monthly mortgage payment is $400 more per month than Chuck's. Which one of the following statements could explain this difference?

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Select the statement below that accurately describes a characteristic of a credit card.

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Which is of the following statements is CORRECT about secured loans?

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As a young adult, all of the following are good strategies for building credit, EXCEPT:

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Which of the following statements is true about this Schumer Box?

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When purchasing a car, a downpayment will do which of the following?

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Which is an example of the difference between installment loans and revolving credit?

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What is true of payday loans?

For this section, you will use the loan calculator and answer questions about taking out a loan of $20,000 for 4 years at 5% APR. The mortgage calculator can be found here: 

Mortgage Calculator

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What is your monthly payment? ($20,000 loan, 4 years, 5% APR) (EXACT ANSWERS ONLY. DO NOT ROUND YOUR ANSWER)

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In your first payment, the amount of interest you pay is:

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In your first payment, the amount towards your principal is:

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In total, how much interest will you pay over the life of this loan?

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If you made a down payment of $4,000, what is the amount you would need to finance?

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What will your monthly payments be with a down payment of $4,000 on this loan?

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How much money will you pay in interest over the course of the loan after a $4,000 down payment?

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Unit 5/6 Test - Credit

I am a type of credit card that requires cardholders to make a security deposit equal to the credit limit on their account. Due to this deposit requirement, I am often a good choice for young people looking to establish a credit history. Which financial product am I?

Each of the following financial products will help you build a credit history EXCEPT...

Which of the following statements below is TRUE?

Based on her current balance, how much credit does this cardholder have available to use?

Which of the following statements comparing credit and debit cards is TRUE?

Which of these statements best explains why it's often a good idea to pay more than the monthly amount due on an amortized loan?

If you are having trouble making auto loan payments, and are really following a tight budget, which recommendation below represents the WORST advice?

When loans are amortized, monthly payments are _______ , while the interest portion of the monthly payment ________ and the principle portion of the monthly payment _______ over time.

The shorter your term length, the _______ your monthly payments, and the _______ the total interest you will pay.

Which of the following is true about fixed and adjustable-rate mortgages?

Which of these credit payback strategies would lead to the HIGHEST interest charges?

Elizabeth is considering buying a $30,000 car. Which of these financing options will likely lead to the LOWEST monthly payment?

You have been working for five years after college and are ready to buy your first home. Homes in the area you want to live in cost $550,000. The biggest mortgage you can afford is $300,000. What is the down payment you will need to pay?

Reading through a credit card disclosure (aka the Schumer Box), you see the APR for a specific card is set at 9.99% - 23.99%. Which statement is true?

What is an advantage of using a credit card?

Credit card disclosure: "Your due date is at least 25 days after the end of the billing cycle. We will not charge you interest on new purchases provided that you have paid your previous balance in full by the due date each month." Identify the true statement.

You see on a commercial that OrangeCo is offering a credit card with a 5% cashback program for all cardholders. What is ONE question you might ask to evaluate how good this offer is?

Amy and Chuck each buy a house in the same neighborhood for $250,000. Amy's monthly mortgage payment is $400 more per month than Chuck's. Which one of the following statements could explain this difference?

Select the statement below that accurately describes a characteristic of a credit card.

Which is of the following statements is CORRECT about secured loans?

As a young adult, all of the following are good strategies for building credit, EXCEPT:

Which of the following statements is true about this Schumer Box?

When purchasing a car, a downpayment will do which of the following?

Which is an example of the difference between installment loans and revolving credit?

What is true of payday loans?

What is your monthly payment? ($20,000 loan, 4 years, 5% APR) (EXACT ANSWERS ONLY. DO NOT ROUND YOUR ANSWER)

In your first payment, the amount of interest you pay is:

In your first payment, the amount towards your principal is:

In total, how much interest will you pay over the life of this loan?

If you made a down payment of $4,000, what is the amount you would need to finance?

What will your monthly payments be with a down payment of $4,000 on this loan?

How much money will you pay in interest over the course of the loan after a $4,000 down payment?

Your friend confides in you that she has a low credit score. What is one way for her to improve her credit score?

When loans are amortized, monthly payments are _ , while the interest portion of the monthly payment and the principle portion of the monthly payment _ over time.

The shorter your term length, the _ your monthly payments, and the _ the total interest you will pay.