18.1 And 18.2 Quiz

The correct answer is Abby entered a PIN to begin a transaction and received an amount of cash. This describes the use of an ATM because Abby is using a Personal Identification Number (PIN) to initiate a transaction and withdraw cash from the machine. The other options do not involve the use of an ATM. Abby purchasing an item and paying for it when the bill comes in the mail suggests a traditional payment method, Abby writing out an amount for an item and giving it to a cashier suggests a cash payment, and Abby balancing her checkbook suggests managing her finances but not necessarily using an ATM.

A credit score of 520 is generally considered to be a poor or below average credit score. It indicates a higher risk for lenders and may result in difficulties in obtaining credit or loans. Therefore, the statement that 520 is an excellent credit score is false.

If you notice something wrong on your credit report, the best course of action is to call the credit company. They are the ones responsible for maintaining accurate and up-to-date information on your credit report. By contacting them, you can report the error and request that it be corrected. Ignoring the issue or assuming that the credit company will fix it on their own is not advisable, as it may negatively impact your credit score and financial standing.

Paying your bills on time can have a positive effect on your credit score because it demonstrates responsible financial behavior. Timely bill payments show that you are reliable and capable of managing your debts. This can increase your creditworthiness in the eyes of lenders, making it easier for you to obtain credit in the future. On the other hand, owing more money than you earn, losing your job, and having a lot of debt can all negatively impact your credit score as they indicate financial instability and an increased risk of defaulting on payments.

Maxing out your credit card can have a negative effect on your credit score because it indicates a high credit utilization ratio, which is the amount of credit you are using compared to your total available credit. A high credit utilization ratio suggests that you are relying heavily on credit and may be at a higher risk of not being able to repay your debts. This can lower your credit score as it reflects poor financial management and increases the perceived risk for lenders.

Regularly checking your credit report is important because it allows you to monitor your financial history and ensure its accuracy. By reviewing your credit report, you can identify any errors or discrepancies that could potentially harm your credit score or indicate fraudulent activity. Additionally, checking your credit report helps you stay informed about your overall credit health and can provide insights into areas where you can improve your financial management. This proactive approach allows you to address any issues promptly and maintain good credit standing.

Taking a loan from your uncle will not help build your credit. Credit bureaus typically do not consider loans from family members or friends when calculating credit scores. To build credit, it is important to have a diverse credit history, including loans and credit accounts from reputable financial institutions.

Having a better credit score increases the likelihood of a bank granting a loan. This is because a good credit score indicates that the borrower has a history of repaying debts on time and managing their finances responsibly. Banks consider this as a positive factor when assessing the risk associated with lending money. Therefore, it is true that the better credit an individual has, the more likely they are to be approved for a loan by a bank.

The question asks about what is not included in a credit report. A credit report typically contains information about an individual's financial history, such as their credit accounts, payment history, and outstanding debts. Employment, addresses, and Social Security number are all personal details that may be included in a credit report as they can be relevant to assessing creditworthiness. However, hair color is not a factor that affects a person's creditworthiness and therefore would not be included in a credit report.

Devin paid $1.75 for each nonbank ATM withdrawal, so the total amount he paid for nonbank ATM withdrawals is 3 * $1.75 = $5.25. The remaining amount of $8.25 - $5.25 = $3 is the total amount he paid for debit card transactions. Since each debit card transaction costs $0.30, Devin made $3 / $0.30 = 10 debit card transactions.

The question provides information about Charlie's banking activities in December, but it does not provide any specific details about the monthly fees charged by each bank. Therefore, it is not possible to determine which bank would have a cheaper monthly fee based solely on the given information.

Information stays on your credit history for 7 years. This means that any negative information, such as late payments or defaults, will remain on your credit report for that period of time. Positive information, such as on-time payments and responsible credit use, will also be recorded and stay on your credit history for 7 years. After this time, the information will typically be removed from your credit report.

Whitney will repay the lender a total of $15,936.48 over the course of 4 years. This can be calculated by multiplying her monthly payment of $332.01 by the number of months in 4 years (48 months).

Charlie would pay $5.75 in fees at Transnational Bank.

Jonathan and Whitney will both have to pay $159.84 as the cost of the loan. Therefore, the answer is $159.84, 159.84.

Jonathan will repay the lender a total of $16096.32 in 4 years.

Charlie would pay $2.00, $2, 2.00, or 2 in fees at Hometown Bank.

Charlie would pay $0.75 in fees at First City Bank.