Questions and Answers
What do government regulations on credit aim to?
Which statement best describes a college education?
The student pays for it, and it is required in many professions.
What should Martin do to avoid having his identity stolen after receiving a suspicious email?
Contact the police and file a phishing report.
Which of these are ways that identity theft can happen? (Select all that apply)
Signup and view all the answers
It typically takes about _____ to get a degree in vocational school.
Signup and view all the answers
Why do some lenders require borrowers to secure credit?
Signup and view all the answers
Wages earned over the course of a year are a worker's _____.
Signup and view all the answers
Interest paid on a loan is calculated as a percentage of the _____
Signup and view all the answers
Which statement best describes the role of a credit agency?
Signup and view all the answers
What do borrowers use to secure a mortgage loan? (Select all that apply)
Signup and view all the answers
Which statement about tuition is the most accurate?
Signup and view all the answers
Which statement best describes what happens when people declare bankruptcy?
Signup and view all the answers
To create a balanced budget, one must make sure to _____
Signup and view all the answers
Which is the best reason for Nina to maintain up-to-date and accurate records of her bank accounts?
Signup and view all the answers
What explains a difference between income and taxable income?
Signup and view all the answers
Which type of account is most suitable for Sofia who wants to earn interest on her savings and maintain access to her money?
Signup and view all the answers
Which statement best explains the cost of living in three different cities?
Signup and view all the answers
Under which circumstance would someone need disability insurance?
Signup and view all the answers
What does the information about Alex's investments demonstrate?
Signup and view all the answers
A down payment is an upfront payment of _____ to make a purchase.
Signup and view all the answers
If Tokuji's monthly net income increases to $650 and he increases his savings to $110 a month, how much can he increase his discretionary spending?
Signup and view all the answers
Which are costs of a college education? (Select all that apply)
Signup and view all the answers
What is the definition of liquidity?
Signup and view all the answers
Which describes a type of tax that funds city programs?
Signup and view all the answers
Which statements apply to leasing a car? (Select all that apply)
Signup and view all the answers
How many cards does the user believe are wrong?
Signup and view all the answers
Study Notes
Government Regulations on Credit
- Aim to protect consumers and ensure equitable access to credit.
College Education
- Typically requires payment from the student; essential for many careers.
Identity Theft Prevention
- Contact the police and file a phishing report if approached with suspicious financial opportunities.
Identity Theft Methods
- Can occur through forgery, phishing, and various types of fraud.
Vocational School Duration
- Typically takes about two years to obtain a degree.
Lenders and Secured Credit
- Lenders may require security from borrowers to mitigate defaults and reduce risk.
Earnings Definition
- Wages accumulated over a year are referred to as salary.
Loan Interest Calculation
- Interest is calculated as a percentage of the principal loan amount.
Role of Credit Agencies
- Monitors and tracks credit usage for lending institutions.
Mortgage Loan Security
- Borrowers often use down payments, a house, or a credit card to secure a mortgage.
Tuition Costs
- Public colleges usually offer lower tuition rates for in-state residents.
Bankruptcy Consequences
- Declaring bankruptcy results in debt elimination but requires asset liquidation.
Balanced Budget Creation
- Prioritize paying down debts before budgeting expenses.
Importance of Accurate Financial Records
- Maintaining precise records helps with budgeting and understanding available funds.
Income vs. Taxable Income
- Income is total earnings; taxable income accounts for deductions from expenses.
Suitable Savings Account
- A money market account fits Sofia's need for interest earnings and liquidity.
Cost of Living Comparison
- San Francisco ranks as the city with the highest cost of living among the compared locations.
Need for Disability Insurance
- Necessary when an individual cannot work due to an accident or medical issue.
Investment Diversification
- Alex's lack of investment variety suggests potential financial risk.
Down Payment Definition
- Refers to an upfront cash payment made when purchasing an asset.
Budgeting for Discretionary Spending
- With an income increase and adjusted savings, Tokuji can raise discretionary spending by $20.
Costs Associated with College
- Financial obligations include tuition, books and fees, and room and board.
Liquidity Definition
- Refers to the ease of converting investments into cash without significant losses.
Local Taxation
- Local income tax specifically funds municipal programs and services.
Leasing a Car Considerations
- Leasing involves mileage restrictions, mandatory return of the vehicle, and potential penalties for early termination.
Exam Performance Note
- Review incorrect answers for better understanding and improvement.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Description
Test your knowledge on personal finance concepts with these flashcards. Each question focuses on important aspects such as government regulations, college education, and identity theft prevention. Perfect for students preparing for a finance exam!
