The Truth-in-Lending Law limits your liability to _________ for unauthorized credit card purchases made prior to notifying the card issuer.
$50
Which of the following require disclosure of the APR?
sales credit agreements and loan credit agreements
To make the computation of interest easier, a year is often considered as...
360 days
This regulation requires that you be told the cost of credit before signing an agreement.
Truth-in-Lending Law of 1968
A statement that will report all of the following info EXCEPT....
whether the item was purchased on sale.
If you cannot pay your bills, you should never...
respond to an advertisement claiming to "erase bad credit - 100% guaranteed.
Which of the following is an example of a bank card?
MasterCard
This type of charge account requires the buyer to make full payment within a stated period.
regular charge account
This type of credit occurs when a company receives goods from a supplier and pays for them later.
trade credit
This regulation requires credit bureaus to delete any info dealing with a personal bankruptcy that is more than 10 years old.
Fair Credit Reporting Act
Money market accounts...
pay interest based on various government and corporate securities
Tasha's main investment concern is that the money she has invested will be returned to her. She is MOST concerned with...
safety
The current price quotes for precious metals in the world markets is called the...
spot price
A series EE savings bond..
is bought at half its face value
Interest is paid to a bondholder based on the bond's
maturity value and stated interest rate
Common stockholders...
are paid dividends only after preferred stockholders are paid their dividends
Financial planning experts encourage people to deposit ____ of their income into a savings account or other investment each month.
10 percent
The relationship between a stock's selling price and its earnings per share is called the ....
price-earnings ratio
This type of mutual fund invests in both stocks and bonds...
balanced fund
Which of the following investments are listed in order from lowest risk to highest risk?
U.S savings bond, municipal bond, growth stock, commodities.
Discuss the difference between a fixed-rate mortgage and an adjustable-rate mortgage.
A fixed-rate mortgage is interest rates on mortgage may be set for the term of the loan. An adjustable-rate mortgage is the interest that is raised or lowered from the time depending upon the current interest rate being charged by lenders.
List and describe the two major investment goals.
There are two major investment goals which are income and growth. Income is used for current living expenses. Growth is used for financial security in the future.
Describe three typical features of a revolving credit account.
A revolving credit account is an account that you can charge purchases to at any time, but only part of the debt must be paid each month. There are three typical features of a revolving credit account, which are that it includes a credit limit a payment i
Describe what a stockbroker is, and the two common types of stockbrokers.
A stockbroker is a licensed specialist in the buying and selling of bonds and stocks. There are two common types of stockbrokers a full-service broker and a discount broker. A full-service broker provides information about securities you may want to buy.
Discuss questions you should ask before signing an installment loan contract.
-How much are the finance charges? Are they clearly shown on the contract?
-Does the contract include the cost of services you may need, such as repairs to a television or a washing machine?
-Does the contract have an add-on feature so that you can later
assessed value
is the amount of that your local government determines your property to be worth for tax purposes (taxes are based on these)
bankruptcy
the legal process of reducing or eliminating an amount owed
budget accounts
requires that a customer make payments of a fixed amount over several months. Also can be used by utility companies for their customers to make estimated payments during a certain period, such as a year
capacity
refers to a person's ability to pay a debt when it is due
commission
Real Estate Agents are trained a licensed to help with the buying and selling of real estate. They are paid a commission from the person selling the home.
compound interest
calculated on the amount saved plus interest previously earned
cosigner
the party responsible for payment of a note if the borrower does not pay as promised
credit
the privilege of using someone else's money for a period of time
dividends
Dividends usually limited to a set rate, and is less risky than common stock, and owners generally have no voting rights
finance charge
the total dollar cost of credit including interest and all other charges
income
money received, especially on a regular basis, for work or through investments
liquidity
the ease with which an investment can be changed into cash without losing its value
mortgage
a legal document giving the lender a claim against the property if the principal, interest, or both are not paid as agreed. Mortgages are long-term loans that require monthly payments. Interest rates may be "fixed" or "variable
mutual funds
managed by an investment company, includes investment in a variety of securities to spread out their risk
principle
...
credit report
shows the debts you owe, how often you use credit, whether you pay your debts on time, and other credit data
sales credit
If you charge and purchase at the time you buy the good or service
saving
is the storage of money for future use
market value
(of a stock) is the price at which a share of stock can be bought and sold in the stock market
yield
the percentage of money earned on your savings or investment over a year