THE ULTIMATE WISE TEST REVIEW QUESTIONS WITH COMPLETE SOLUTIONS

THE ULTIMATE WISE TEST REVIEW QUESTIONS WITH COMPLETE SOLUTIONS What term describes the cost associated with borrowing funds? Interest What is the term for the highest balance you are allowed to maintain on a credit card? Credit limit What type of fee might some credit card companies charge for using their card? Annual fee What is the term for the minimum amount you need to pay on a credit card, expressed as a percentage of your outstanding balance? Minimum payment What is a potential risk associated with credit card use? It may lead to overspending 2 To establish a positive credit history, what actions should you take? Ensure timely payments and pay as much of your balance as possible What does the acronym APR represent? Annual Percentage Rate Which financial behaviors influence your credit score? All of the following factors are relevant: 1) Payment history and the amount owed 2) Duration of credit history and recent credit applications 3) Types of credit accounts Which three major agencies report on credit histories? Equifax, TransUnion, and Experian Which type of debt cannot be discharged through bankruptcy? Child support 3 What aspect has the greatest impact on your credit score? Payment history What type of account is designed to keep deposited money safe at a bank? Savings account Which account allows for easy withdrawals, bill payments, or purchases? Checking account What provides the ability to withdraw cash