PERSONAL FINANCE FINAL EXAM GRADED
A+ QUESTIONS AND COMPLETE
SOLUTIONS
annual ifee i- iCORRECT iANSWER-fee icharged iby ia icredit icard icompany ifor ithe iuse iof itheir icredit
icard
annual ipercentage irate i- iCORRECT iANSWER-cost iof iborrowing imoney ion ian iannual ibasis; itakes
iinto iaccount ithe iinterest irate iand iother irelated ifees ion ia iloan
ATM i- iCORRECT iANSWER-Automatic iTeller iMachine-a ibank imachine ithat igives iout icash ifrom
iyour iaccount iand iaccepts ideposits iaround ithe iclock.
bank i- iCORRECT iANSWER-stores imoney iand iloans
bankruptcy i- iCORRECT iANSWER-legal iprocedure ifor idealing iwith idebt iproblems iof iindividuals iand
ibusinesses; ispecifically ia ilegal icourt icase ifiled iunder ione iof ithe ichapters iof ititle iII iof ithe iu.s
icode
bond i- iCORRECT iANSWER-debt iinstrument iwhere ian iissuer isuch ias ia icorporation, imunicipilaty ior
igov iagency iowes iyou imoney; ia iform iof iI.O.U.; ithe iissuer imakes iregular iinterest ipayments ion
ithe ibond iand ipromises ito ipay iback ior iredeem ithe iface ivalue iof ithe ibond iat ia ispecified ipoint
iin ithe ifuture
budget i- iCORRECT iANSWER-cash iflow iplan; iassigns ievery idollar ito ia ispecific icategory/ iexpense
iat ithe ibeginning iof ieach imonth
capital igain i- iCORRECT iANSWER-positive idifference ibetween ian iassets iprice iwhen ibought iand iits
iprice iwhen isold
capital iloss i- iCORRECT iANSWER-negative idifference ibetween ian iassets iprice iwhen ibought iand iits
iprice iwhen isold
, career i- iCORRECT iANSWER-your iline iof iwork
cash iflow i- iCORRECT iANSWER-Movement iof ithe imoney iyou ireceive iand ithe imoney iyou ispend.
chapter i7 i- iCORRECT iANSWER-chapter iof ibankruptcy icode iproviding ifor iliquidation iof ithe
idebtor's iassets iin iorder ito irepay ithe icreditors; icertain iassets ior iaggregate ivalue iof iassets iof ithe
idebtor imay ibe iexempt ibased ion istate ilaw
chapter i13 i- iCORRECT iANSWER-chapter iof ibankruptcy iproviding ifor ian iindividual ito irepay idebts
iover itime, iusually i3-5 iyears; idebtor imakes iperiodic ipayment ito ibankruptcy itrustee iwho iin iturn
ipays ithe icreditors
checking iaccount i- iCORRECT iANSWER-set iup ito imaintain idaily ifinancial iactivities. iusers ican idraft
ichecks ifor ipayment, iissue ideposits iinto itheir iaccounts, iand ikeep itrack iof itheir idebit icard
itransactions ithrough itheir ichecking iaccount
compound iinterest i- iCORRECT iANSWER-interest ipaid ion iinterest ipreviously iearned; icredited idaily,
imonthly, ietc
coverage ilimit i- iCORRECT iANSWER-applies ito ithe iamount iof iprotection iyou ihave ithrough ian
iinsurance icompany iin ian ievent iof ia iloss
credit i- iCORRECT iANSWER-money iavailable ifor ia iclient ito iborrow
credit ihistory i- iCORRECT iANSWER-a isummary iof ia iperson's iborrowing iand irepayment ihistory
credit ilimit i- iCORRECT iANSWER-the imaximum iamount iof icredit ia ilender iwill iextend ito ia
icustomer
credit ireport i- iCORRECT iANSWER-a ireport ion ia iperson's icreditworthiness ithat iincludes iidentifying
iinformation, icredit icards, ilate ipayments, ibankruptcies, iand isavings ibalances
A+ QUESTIONS AND COMPLETE
SOLUTIONS
annual ifee i- iCORRECT iANSWER-fee icharged iby ia icredit icard icompany ifor ithe iuse iof itheir icredit
icard
annual ipercentage irate i- iCORRECT iANSWER-cost iof iborrowing imoney ion ian iannual ibasis; itakes
iinto iaccount ithe iinterest irate iand iother irelated ifees ion ia iloan
ATM i- iCORRECT iANSWER-Automatic iTeller iMachine-a ibank imachine ithat igives iout icash ifrom
iyour iaccount iand iaccepts ideposits iaround ithe iclock.
bank i- iCORRECT iANSWER-stores imoney iand iloans
bankruptcy i- iCORRECT iANSWER-legal iprocedure ifor idealing iwith idebt iproblems iof iindividuals iand
ibusinesses; ispecifically ia ilegal icourt icase ifiled iunder ione iof ithe ichapters iof ititle iII iof ithe iu.s
icode
bond i- iCORRECT iANSWER-debt iinstrument iwhere ian iissuer isuch ias ia icorporation, imunicipilaty ior
igov iagency iowes iyou imoney; ia iform iof iI.O.U.; ithe iissuer imakes iregular iinterest ipayments ion
ithe ibond iand ipromises ito ipay iback ior iredeem ithe iface ivalue iof ithe ibond iat ia ispecified ipoint
iin ithe ifuture
budget i- iCORRECT iANSWER-cash iflow iplan; iassigns ievery idollar ito ia ispecific icategory/ iexpense
iat ithe ibeginning iof ieach imonth
capital igain i- iCORRECT iANSWER-positive idifference ibetween ian iassets iprice iwhen ibought iand iits
iprice iwhen isold
capital iloss i- iCORRECT iANSWER-negative idifference ibetween ian iassets iprice iwhen ibought iand iits
iprice iwhen isold
, career i- iCORRECT iANSWER-your iline iof iwork
cash iflow i- iCORRECT iANSWER-Movement iof ithe imoney iyou ireceive iand ithe imoney iyou ispend.
chapter i7 i- iCORRECT iANSWER-chapter iof ibankruptcy icode iproviding ifor iliquidation iof ithe
idebtor's iassets iin iorder ito irepay ithe icreditors; icertain iassets ior iaggregate ivalue iof iassets iof ithe
idebtor imay ibe iexempt ibased ion istate ilaw
chapter i13 i- iCORRECT iANSWER-chapter iof ibankruptcy iproviding ifor ian iindividual ito irepay idebts
iover itime, iusually i3-5 iyears; idebtor imakes iperiodic ipayment ito ibankruptcy itrustee iwho iin iturn
ipays ithe icreditors
checking iaccount i- iCORRECT iANSWER-set iup ito imaintain idaily ifinancial iactivities. iusers ican idraft
ichecks ifor ipayment, iissue ideposits iinto itheir iaccounts, iand ikeep itrack iof itheir idebit icard
itransactions ithrough itheir ichecking iaccount
compound iinterest i- iCORRECT iANSWER-interest ipaid ion iinterest ipreviously iearned; icredited idaily,
imonthly, ietc
coverage ilimit i- iCORRECT iANSWER-applies ito ithe iamount iof iprotection iyou ihave ithrough ian
iinsurance icompany iin ian ievent iof ia iloss
credit i- iCORRECT iANSWER-money iavailable ifor ia iclient ito iborrow
credit ihistory i- iCORRECT iANSWER-a isummary iof ia iperson's iborrowing iand irepayment ihistory
credit ilimit i- iCORRECT iANSWER-the imaximum iamount iof icredit ia ilender iwill iextend ito ia
icustomer
credit ireport i- iCORRECT iANSWER-a ireport ion ia iperson's icreditworthiness ithat iincludes iidentifying
iinformation, icredit icards, ilate ipayments, ibankruptcies, iand isavings ibalances
