Personal Finance Test 1 Flashcards

Who is most likely to benefit by inflation? borrowers The stages that an individual goes through based on age, financial needs, and family situation is called the: adult life cycle. adult life cycle. The stages that an individual goes through based on age, financial needs, and family situation is called the: Six steps in financial planning process 1. detrmne current fin sit. 2.dvlp fin goals 3.idntfy alt courses of action 4.Evaluate alts 5.create&implmnt fin action plan 6.review&revise fin plan A formalized report that summarizes your current fin situation, analyzes your fin needs, and recommends a direction for your fin activities is a(n): financial plan. financial plan. A formalized report that summarizes your current fin situation, analyzes your fin needs, and recommends a direction for your fin activities is a(n): Which type of computation would a person use to determine current value of a desired amount for the future? present value of a single amount Changes in income, values, and family situation make it necessary to evaluate and revise your actions A functional résumé is best for a person who has diverse skills The purpose of the development section of a cover letter is to highlight background that qualifies the applicant for a specific job Money management refers to day-to-day financial activities Medical expenses deductible for amount that is over ___ of AGI 7.5% An all-purpose account that provides several services is a(n): asset management account asset management account An all-purpose account that provides several services is a(n): When did installment credit explode on the American scene? with the advent of the automobile in the early 1900s incidental credit. A credit arrangement that has no extra costs and no specific repayment plan is called A credit arrangement that has no extra costs and no specific repayment plan is called incidental credit Experts suggest that you spend no more than ____________ percent of your net income on credit purchases 20 Which federal credit law protects you against an unauthorized use of your credit card? Fair Credit Billing Act Which fed consumer credit law provides specific cost disclosure requirements for the APR and the fin charge as a dollar amount? Truth in Lending Act Higher consumer prices are likely to be accompanied by higher interest rates higher interest rates are likely to be accompanied by Higher consumer prices Which of the following would increase the risk of a loan? higher consumer prices higher consumer prices affect the risk of loan by_____ increasing its risk Kenton Greer wants to locate employment positions available in his area. This information would be best obtained from professional contacts Comparison of earnings for different savings plans can best be accomplished using the annual percentage yield A ____________ endorsement would be used if a person is presenting a check in order to obtain cash. blank $5000 in a bank CD. This CD pays an interest rate of 6% and he has committed his funds for the next three years. What type of financial service? Savings services does credit increase or decrease your purchasing power? neither Installment cash credit is a direct loan of money for personal purposes Which federal credit law sets the procedure for promptly correcting billing mistakes? Fair Credit Billing Act Which Federal agency writes regulations to carry out the consumer credit laws? Federal Reserve System Which formula dictates that you pay more interest at the beginning of the loan and pay less and less interest as the debt is reduced? the rule of 78s According to consumer affairs experts, the nation's number two family financial problem is: over-indebtedness If you default on your automobile loan: no advance notice is required before repossession. The CCCS sometimes charges a fee if it: administers a debt repayment plan.