If you are denied credit based on your credit report, you are entitled to a: - ✔✔ Correct Answer : A: Free copy of the credit report if you request
... [Show More] it within 60 days
Reason : If requested within 60 days after the denial, you must be provided with a free copy of the credit report from the specific credit reporting agency whose report was the basis for credit, employment, insurance, or housing denial. At all other times, there is a small fee to get a credit report.
Consumer Credit Counseling Services (CCCS) offer: - ✔✔ Correct Answer : B: Debt repayment plans
Reason : There are hundreds of local Consumer Credit Counseling Services (CCCS) across the country that counsel people about how to get out of debt and manage their money. They also work out debt repayment plans with a consumer's creditors in which the consumer gives CCCS part of each paycheck to pay creditors.
Susan gives Marie her ABC Credit Union debit card and personal identification number (PIN) so Marie could get $25 from Susan's bank account. Marie withdrew $100 instead of the agreed to $25. How can Susan get the $75 back? - ✔✔ Correct Answer : D: No bank or government agency is obligated to reimburse Susan because she authorized Marie to use her ATM card and PIN
Reason : The fact that Susan voluntarily gave Marie her EFT card and PIN means that Marie's withdrawal is considered an authorized transaction under the Electronic Fund Transfer Act. Thus, no financial institution or government agency is obligated to reimburse Susan or force Marie to give back the extra money. Susan's only recourse is to try to get Marie to give back the extra $75 or sue Marie for the money in the small claims court.
A high school student has begun to investigate the field of finance as a career choice. In deciding about the field, the student should focus on which question first? - ✔✔ Correct Answer : A: Will I find a balance between financial rewards and personal satisfaction from work?
Reason : It is important to investigate a career with the idea of not only getting a sense of earning potential, types of positions available and the training necessary to acquire these positions but what are the chances that the individual will enjoy working in this field.
Jennie owns Disney shares and cannot attend the annual stockholder meeting. She can: - ✔✔ Correct Answer : A: Vote by mail or online through a proxy
Reason : A proxy, which is a kind of absentee ballot, is written authorization given by a shareholder to someone else, usually the corporate board of directors, to represent him/her and vote his/her shares at a stockholder's meeting. It is usually easier to vote by mail through a proxy than to attend the annual meeting in person.
Why does a corporation issue bonds? - ✔✔ Correct Answer : A: To raise money for expansion or other company operations
Reason : A corporation or a government issues bonds to raise money for expansion or other operations. A bond is a loan from the investor to the corporation or government.
Financial services and products generally offered by banks and credit unions include: - ✔✔ Correct Answer : B: Savings and loans
Reason : The basic financial functions offered by banks and credit unions are checking accounts, savings accounts, and personal and business loans. Insurance is sold only by insurance companies, stocks and bonds are sold by brokerage firms, and legal services are provided by attorneys. Banks can sell financial products if they sell the products on behalf of a partner or affiliate investment firm.
Joan wants to open a checking account and wonders if checking accounts pay interest. How would you answer her question? - ✔✔ Correct Answer : B: Some types of checking accounts pay interest
Reason : Regular checking accounts do not earn interest. NOW (negotiable order of withdrawal) accounts do earn interest but tend to have higher minimum balance requirements than regular checking accounts and often limit the number of checks that can be written each month without a fee
The purpose of Insurance is NOT to: - ✔✔ Correct Answer : A: Diversify an investment portfolio
Reason : A basic principle of insurance is to insure major potential losses and handle small losses from one's own resources. Part of every policyholder's premium is put into a "pool" from which the few policyholders who have claims are paid. Policyholders know that some of them will experience losses and make claims; they just don't know who it will be. By sharing the risk, each policyholder can cover large risks at a low premium cost.
Why is term life insurance usually the least expensive type of life insurance? - ✔✔ Correct Answer : A: The policy only pays a death benefit
Reason : Term life insurance is the least expensive type of life insurance because it is only a death benefit and insures the individual for a limited number of years... There is no cash value accumulation. The death benefit is paid only if the insured dies during the term of coverage.
Using someone else's money, promising to repay at a future date, and paying a fee for use of the money, is the definition for: - ✔✔ Correct Answer : B: Credit
Reason : The key elements of credit are using someone else's money, paying it back, and paying interest. Credit has a cost just like any other good or service, and the cost of credit is the interest. If you do not promise to pay the money you borrow in the future, the money received would be considered a gift.
You were approved for a loan that combines all your debts into one loan with lower payments based on a longer repayment period or lower APR. This type of loan is a: - ✔✔ Correct Answer : D: Consolidation loan
Reason : Consolidation loans combine all your consumer credit into one loan so you have only one payment. However, consolidation loans often cost more in total finance charges because you take longer to pay off the debt.
The primary sources of income for most people between the ages of 20 and 35 who are not living on a pension or social security are: - ✔✔ Correct Answer : D: Salaries, wages, and tips
Reason : The primary sources of income for most people between the ages of 20 and 35 are salaries, wages, and tips from their employment, also known as earned income. Earned income is also the primary source of income for most other age groups. Very few people have sufficient unearned income - dividends, [Show Less]