H & r block challenge test
interest rate - answerthe amount you pay or earn for borrowing or loaning money
compound interest - answer interest on interest, basically interest plus time equals
interest on your interest which equals increasing amounts of money
NSF fee - answer charged by the bank because you do not have enough money to
cover the check/charge
returned check fee - answercharged by the person/company you wrote the check/made
the debit card charge because you did not have sufficient funds to cover the
check/charge
overdraft protection - answerfeature you can get on a bank checking count that links
your checking account to your credit card/savings account. if you have check/charge
bounce, the bank will charge you a small fee and use your credit card/savings account
to cover the check/charge
credit utilization - answerthe percentage of your credit you are using
credit utilization percent - answerthe total amount you owe divided by the total amount
of your credit
which two factors determine 70% of your credit rating? - answercredit card utilization %
and your payment history
what is a credit report? - answerhow much you owe and how much credit you have. 7
year history of your payments and any loans you have as well as any unpaid taxes you
have been sued for (tax lien) and now have your wages taken right out of your check
which is bankruptcy
who is responsible for checking the accuracy of your credit report? - answeryou
how long does negative information remain on your credit record? - answer7 years
what sort of jobs will possibly not hire you if you have a poor credit rating? why? -
answerfinancial industry because they fear you will steal or commit fraud. government
and law enforcement because they fear you will sell secrets and take bribes
how does your credit score affect your costs and interest rate for borrowing? -
answerjust like with scales, the higher your credit the lower your costs, the lower your
credit, the higher your costs. they work together in tandem.
, what is the best way to build your credit? - answerget a credit card at 18, charge 19%-
30% of your credit limit per month, pay it all off every month on time.
inflation - answeran increase in the price of good or services. it is the tendency in a
healthy economy for good and services to gradually increase in price over time
mutal fund - answera portfolio (basket/group) of stocks managed (bought, sold and
held) by a real live person or a team of people. higher fees and expenses
index fund - answera portfolio of stocks typically managed by a computer program. it
buys a particular kind of stock or a slice of the whole stock market. very low fees. this is
your best choice for retirement when you are young because it is easy, cheap, and
performs very well.
bonds - answera relatively safe and cheap investment but it does not grow your money
very well. good choice after you retire. a tiny piece of government debt - a city, state, or
the federal government will borrow money to build something
stocks - answertiny piece of a company
dividend - answeryou portion of the proft the company made that year. older larger
companies are the ones that pay dividends
potential consequential for not having car insurance - answercar insurance: you'll pay
for the repair of your car, any injuries you sustain. if it's your fault, you will pay for the
injuries of your passengers and all the people in the other car,a as well as repairs to the
other car. if the police are called, you'll be ticketed, your car may be impounded, and
you may be arrested. you can be sued for any damages you can't pay and the judges
may garnish your wages until the money is paid off. also, your car insurance increases
dramatically if you allow it to lapse
just pulled over by the police: get a ticket, car may be impounded, and you may be
arrested. car insurance will increase dramatically
decuctibile - answerthe money that is your responsibility to pay if you must make an
insurance claim.
liability vs full coverage - answerliability: only covers the other cars and people (required
by law)
full coverage: covers your car, and your passengers, and the other cars and people
how often should you check your credit report for errors? - answerat least once a month
what is the purpose of a bank/credit card statements? - answerso you can check for
errors and you can also use it for your tax returns
interest rate - answerthe amount you pay or earn for borrowing or loaning money
compound interest - answer interest on interest, basically interest plus time equals
interest on your interest which equals increasing amounts of money
NSF fee - answer charged by the bank because you do not have enough money to
cover the check/charge
returned check fee - answercharged by the person/company you wrote the check/made
the debit card charge because you did not have sufficient funds to cover the
check/charge
overdraft protection - answerfeature you can get on a bank checking count that links
your checking account to your credit card/savings account. if you have check/charge
bounce, the bank will charge you a small fee and use your credit card/savings account
to cover the check/charge
credit utilization - answerthe percentage of your credit you are using
credit utilization percent - answerthe total amount you owe divided by the total amount
of your credit
which two factors determine 70% of your credit rating? - answercredit card utilization %
and your payment history
what is a credit report? - answerhow much you owe and how much credit you have. 7
year history of your payments and any loans you have as well as any unpaid taxes you
have been sued for (tax lien) and now have your wages taken right out of your check
which is bankruptcy
who is responsible for checking the accuracy of your credit report? - answeryou
how long does negative information remain on your credit record? - answer7 years
what sort of jobs will possibly not hire you if you have a poor credit rating? why? -
answerfinancial industry because they fear you will steal or commit fraud. government
and law enforcement because they fear you will sell secrets and take bribes
how does your credit score affect your costs and interest rate for borrowing? -
answerjust like with scales, the higher your credit the lower your costs, the lower your
credit, the higher your costs. they work together in tandem.
, what is the best way to build your credit? - answerget a credit card at 18, charge 19%-
30% of your credit limit per month, pay it all off every month on time.
inflation - answeran increase in the price of good or services. it is the tendency in a
healthy economy for good and services to gradually increase in price over time
mutal fund - answera portfolio (basket/group) of stocks managed (bought, sold and
held) by a real live person or a team of people. higher fees and expenses
index fund - answera portfolio of stocks typically managed by a computer program. it
buys a particular kind of stock or a slice of the whole stock market. very low fees. this is
your best choice for retirement when you are young because it is easy, cheap, and
performs very well.
bonds - answera relatively safe and cheap investment but it does not grow your money
very well. good choice after you retire. a tiny piece of government debt - a city, state, or
the federal government will borrow money to build something
stocks - answertiny piece of a company
dividend - answeryou portion of the proft the company made that year. older larger
companies are the ones that pay dividends
potential consequential for not having car insurance - answercar insurance: you'll pay
for the repair of your car, any injuries you sustain. if it's your fault, you will pay for the
injuries of your passengers and all the people in the other car,a as well as repairs to the
other car. if the police are called, you'll be ticketed, your car may be impounded, and
you may be arrested. you can be sued for any damages you can't pay and the judges
may garnish your wages until the money is paid off. also, your car insurance increases
dramatically if you allow it to lapse
just pulled over by the police: get a ticket, car may be impounded, and you may be
arrested. car insurance will increase dramatically
decuctibile - answerthe money that is your responsibility to pay if you must make an
insurance claim.
liability vs full coverage - answerliability: only covers the other cars and people (required
by law)
full coverage: covers your car, and your passengers, and the other cars and people
how often should you check your credit report for errors? - answerat least once a month
what is the purpose of a bank/credit card statements? - answerso you can check for
errors and you can also use it for your tax returns
