Career Readiness Exam 3 Review
Questions with Latest Update
Interest - Answer-the cost of borrowing money
Credit - Answer-type of plastic payment that allows you to buy now, pay later
Debit* - Answer-type of plastic payment option directly linked to your checking account
Cash Advance - Answer-type of loan obtained through credit card with extremely high
rates of interest
Credit Limit - Answer-amount of money that you can charge to a credit card
APR - Answer-acronym that represents the rate of yearly interest for your credit card
Credit History or Credit Report - Answer-Record that details a person's financial/credit
history. Basically tracks your borrowing and repayment activity form banks, credit card
companies and other lenders use to calculate credit score. Known as either ______
__________ (What you have done) or ______ ______ (Where it's written down)
Credit Score - Answer-numerical rating your creditworthiness (can affect loan/credit
card approval, interest rate and credit limit)
Equifax, Experian, TransUnion - Answer-three major credit reporting agencies in the
United States that track your credit history.
Credit Bureau - Answer-type of company responsible for collecting credit information
about individuals and then calculates a credit score
1; 3 - Answer-You are legally entitled (annually/yearly) to ___ free credit report per year
from each of the big three credit bureau for a total of ___
FAFSA - Answer-Free Application for Federal Student Aid; min application students use
to apply for federal education grants and loans (financial aid)
Grant or Scholarship - Answer-type of free financial aid given to students based on
merit or financial need
October 1 - Answer-earliest date that a person can fill out a FAFSA application
Grace - Answer-period after graduation or leaving school before you must begin paying
back your student loans (usually 6 months)
, Mortgage - Answer-Type of loan that is used to buy property
Depreciating Asset - Answer-something you own that decreases in value over time, if
you sell you get less money than you paid for originally (Ex: Car)
Appreciating Asset - Answer-something you own that increases in value over time, it will
be worth more money than you originally paid for it (Ex: House)
Lease - Answer-allows you to make cheaper payments; allows you to drive an
expensive car and no worry of selling the car layer
Down Payment - Answer-initial payment mad when an item is bought on credit. Usually
paid when purchasing large items; like house or car
Coverage - Answer-Amount of protection you're eligible to receive from your insurance
plan
Premium - Answer-amount policyholders pay to have insurance protection/coverage
Claim - Answer-request for payment that is submitted to you insurance company
Deductible - Answer-the amount for which the insured is liable on each claim to pay
before the insurance company will make payment
Capital Gains - Answer-type of tax charged on the profits made on the sale of property
that was purchased at a lower price
State - Answer-level of government that collects sales tax
Local/City - Answer-level of government that collects property tax
IRS - Answer-U.S. government agency that is in charge of collecting taxes from US
citizens
W4 - Answer-type of tax from an employee fills out at the start of a new job, tells IRS
how much money to take out of each of their paychecks
W2 - Answer-type of tax form employers are required to send employees before they
file their taxes which shows them information of earnings and the amount of taxes
withheld throughout the year and how much has already been paid in taxes
Sales - Answer-type of tax placed on the selling price of an item
April 15 - Answer-due date for federal individual tax returns
Questions with Latest Update
Interest - Answer-the cost of borrowing money
Credit - Answer-type of plastic payment that allows you to buy now, pay later
Debit* - Answer-type of plastic payment option directly linked to your checking account
Cash Advance - Answer-type of loan obtained through credit card with extremely high
rates of interest
Credit Limit - Answer-amount of money that you can charge to a credit card
APR - Answer-acronym that represents the rate of yearly interest for your credit card
Credit History or Credit Report - Answer-Record that details a person's financial/credit
history. Basically tracks your borrowing and repayment activity form banks, credit card
companies and other lenders use to calculate credit score. Known as either ______
__________ (What you have done) or ______ ______ (Where it's written down)
Credit Score - Answer-numerical rating your creditworthiness (can affect loan/credit
card approval, interest rate and credit limit)
Equifax, Experian, TransUnion - Answer-three major credit reporting agencies in the
United States that track your credit history.
Credit Bureau - Answer-type of company responsible for collecting credit information
about individuals and then calculates a credit score
1; 3 - Answer-You are legally entitled (annually/yearly) to ___ free credit report per year
from each of the big three credit bureau for a total of ___
FAFSA - Answer-Free Application for Federal Student Aid; min application students use
to apply for federal education grants and loans (financial aid)
Grant or Scholarship - Answer-type of free financial aid given to students based on
merit or financial need
October 1 - Answer-earliest date that a person can fill out a FAFSA application
Grace - Answer-period after graduation or leaving school before you must begin paying
back your student loans (usually 6 months)
, Mortgage - Answer-Type of loan that is used to buy property
Depreciating Asset - Answer-something you own that decreases in value over time, if
you sell you get less money than you paid for originally (Ex: Car)
Appreciating Asset - Answer-something you own that increases in value over time, it will
be worth more money than you originally paid for it (Ex: House)
Lease - Answer-allows you to make cheaper payments; allows you to drive an
expensive car and no worry of selling the car layer
Down Payment - Answer-initial payment mad when an item is bought on credit. Usually
paid when purchasing large items; like house or car
Coverage - Answer-Amount of protection you're eligible to receive from your insurance
plan
Premium - Answer-amount policyholders pay to have insurance protection/coverage
Claim - Answer-request for payment that is submitted to you insurance company
Deductible - Answer-the amount for which the insured is liable on each claim to pay
before the insurance company will make payment
Capital Gains - Answer-type of tax charged on the profits made on the sale of property
that was purchased at a lower price
State - Answer-level of government that collects sales tax
Local/City - Answer-level of government that collects property tax
IRS - Answer-U.S. government agency that is in charge of collecting taxes from US
citizens
W4 - Answer-type of tax from an employee fills out at the start of a new job, tells IRS
how much money to take out of each of their paychecks
W2 - Answer-type of tax form employers are required to send employees before they
file their taxes which shows them information of earnings and the amount of taxes
withheld throughout the year and how much has already been paid in taxes
Sales - Answer-type of tax placed on the selling price of an item
April 15 - Answer-due date for federal individual tax returns
