FIN 101: Exam 2 study guide
The cdifference cbetween ca cbank cand ca ccredit cunion cis cas cfollows: c- cCORRECT
cANS✔✔A ccredit cunion cdepositor cis cknown cas ca cmember cbut ca cbank cdepositor cis
csimply ca ccustomer.
Jorge copened ca cno-cost cchecking caccount cat ca clocal cbank clast cmonth. cHe cwas
csurprised cwhen che cwas ccharged cseveral cservice cfees. cUnder cfederal claw, cwhich
cof cthe cfollowing cservice cfees cis callowed cin ca cno-cost cchecking caccount? c-
cCORRECT cANS✔✔inactive caccount cfee
Abed ccarries can caverage cmonthly cbalance cof c$900 cin chis cchecking caccount. cIf chis
cbank ccharges c$9.00 cper cmonth cas ca cminimum cservice cfee, chow cmuch cin cannual
cinterest cmust cAbed cearn cto ccover cthe cmonthly cfee? c- cCORRECT cANS✔✔12.00%
When cAnn cwas ctraveling coutside cthe cUnited cStates, cshe cfound cthe cperfect
csouvenir. cUnfortunately, cwhen cshe cwent cto cmake cthe cpurchase cwith cher cdebit
ccard, cthe ctransaction cwas cdenied. cThis chappened cbecause cAnn chad conly c$200 cin
cher caccount, cand cthe csouvenir ccost c$300. cAnn cwas cdisappointed cand cregretted
chaving cto cpass con cher cpurchase. cWhat ccould cAnn chave cdone cbefore cher ctrip cto
censure cthat cshe ccould cspend cmore cthan cwhat cwas cin cher caccount? c- cCORRECT
cANS✔✔Added coverdraft cprotection ctransfers cfrom cher csavings caccount cto cher
cchecking caccount.
Nedra cuses cher cdebit ccard con ca cdaily cbasis. cThe clast ctime cshe cused cit cwas cthe
cevening cbefore cat ca crestaurant. cThis cmorning, cshe cnoticed cthat cthe ccard cwas
cmissing. cHow clong cdoes cshe chave cto creport cthe ccard cas clost cto chave c100%
cprotection cagainst cfraudulent cuse? c- cCORRECT cANS✔✔She cmust creport cthe ccard
cimmediately cbefore cany cunauthorized cwithdrawals care cmade.
Which cof cthe cfollowing care cincluded cin cthe cfinance ccharge cfor ca cloan? c-
cCORRECT cANS✔✔- cinterest ccharged cfor cthe cloan
- cloan corigination cfees
- cannual cloan caccount cfees
-ALL cOF cTHE cANSWER cCHOICES cARE cCORRECT
Which cof cthe cfollowing cterms cbest crepresents cthe camount cof cmoney cthat cis
cborrowed, cand cwhich cmust cbe crepaid? c- cCORRECT cANS✔✔principal
, Eric cborrows c$5100 con cJanuary c1 cfor cone cyear. cInterest cis ccalculated cannually. cHe
cdoes cnot chave cto cmake cany cmonthly cpayments, cbut che chas cto crepay cthe centire
cloan cplus cinterest con cDecember c31 cof cthe csame cyear. cIf cthe cloan chas can cannual
cinterest crate cof c5% cwhat camount cwill cEric chave cto crepay con cDecember c31? c-
cCORRECT cANS✔✔$5355
What cshould cinstallment cloan clenders cdisclose cto ccredit capplicants? c- cCORRECT
cANS✔✔The cinterest crate c(as can cAPR) cand cthe cfinance ccharge c(in cdollars).
Which cof cthe cfollowing cevents cwill ctrigger cthe ccreation cof ca ccredit creport?
I.Declaring cbankruptcy.
II.Taking cout ca cstudent cloan.
III.Borrowing cmoney cfrom ca ccompany.
IV.Marriage cor cdivorce. c- cCORRECT cANS✔✔I, cII, cand cIII conly
Which cof cthe cfollowing cnegative cfinancial cbehaviors cwill cstay con cyour ccredit creport
cthe clongest? c- cCORRECT cANS✔✔declare cbankruptcy
Under ccurrent claw, cwhich cof cthe cfollowing crequests cis callowed? c- cCORRECT
cANS✔✔Both cthe cFederal cAviation cAdministration crequests cyour ccredit creport
cbefore cissuing cyou ca cpilot's clicense cand ca ccar cdealer crequests cyour ccredit creport
cbefore ctaking cyou con ca ctest cdrive.
Which cof cthe cfollowing cstatements cregarding caccess cto cindividual ccredit creports cis
cmost caccurate? c- cCORRECT cANS✔✔Insurance ccompanies ccan cview ca ccustomer's
ccredit creport cwhen cunderwriting cinsurance cpolicies.
To ccorrect cinaccurate, cfraudulent, cor cother cerroneous cinformation con cyour ccredit
creport, cwhich cof cthe cfollowing cis cthe cbest ccourse cof caction? c- cCORRECT
cANS✔✔Contact cthe cprimary cnational ccredit cbureaus cby cwriting ca cletter cand
cnotifying cthem cof cthe cinaccurate cinformation.
The cthree cprimary cnational ccredit cbureaus care: c- cCORRECT cANS✔✔TransUnion,
cEquifax, cand cExperian.
Most cof cthe cinformation ccontained cwithin ca ccredit creport cis creported cto ccredit
cbureaus cby: c- cCORRECT cANS✔✔creditors
How cmany cyears ccan ccredit creporting cagencies cmaintain cnegative cinformation
c(excluding ca cbankruptcy) con cyour creport? c- cCORRECT cANS✔✔7
Who cdecides cto cgrant cor cdeny cyour ccredit capplication? c- cCORRECT cANS✔✔???
Which cof cthe cfollowing cstatements cregarding caccess cto cindividual ccredit creports cis
cmost caccurate? c- cCORRECT cANS✔✔Insurance ccompanies ccan cview ca ccustomer's
ccredit creport cwhen cunderwriting cinsurance cpolicies.
The cdifference cbetween ca cbank cand ca ccredit cunion cis cas cfollows: c- cCORRECT
cANS✔✔A ccredit cunion cdepositor cis cknown cas ca cmember cbut ca cbank cdepositor cis
csimply ca ccustomer.
Jorge copened ca cno-cost cchecking caccount cat ca clocal cbank clast cmonth. cHe cwas
csurprised cwhen che cwas ccharged cseveral cservice cfees. cUnder cfederal claw, cwhich
cof cthe cfollowing cservice cfees cis callowed cin ca cno-cost cchecking caccount? c-
cCORRECT cANS✔✔inactive caccount cfee
Abed ccarries can caverage cmonthly cbalance cof c$900 cin chis cchecking caccount. cIf chis
cbank ccharges c$9.00 cper cmonth cas ca cminimum cservice cfee, chow cmuch cin cannual
cinterest cmust cAbed cearn cto ccover cthe cmonthly cfee? c- cCORRECT cANS✔✔12.00%
When cAnn cwas ctraveling coutside cthe cUnited cStates, cshe cfound cthe cperfect
csouvenir. cUnfortunately, cwhen cshe cwent cto cmake cthe cpurchase cwith cher cdebit
ccard, cthe ctransaction cwas cdenied. cThis chappened cbecause cAnn chad conly c$200 cin
cher caccount, cand cthe csouvenir ccost c$300. cAnn cwas cdisappointed cand cregretted
chaving cto cpass con cher cpurchase. cWhat ccould cAnn chave cdone cbefore cher ctrip cto
censure cthat cshe ccould cspend cmore cthan cwhat cwas cin cher caccount? c- cCORRECT
cANS✔✔Added coverdraft cprotection ctransfers cfrom cher csavings caccount cto cher
cchecking caccount.
Nedra cuses cher cdebit ccard con ca cdaily cbasis. cThe clast ctime cshe cused cit cwas cthe
cevening cbefore cat ca crestaurant. cThis cmorning, cshe cnoticed cthat cthe ccard cwas
cmissing. cHow clong cdoes cshe chave cto creport cthe ccard cas clost cto chave c100%
cprotection cagainst cfraudulent cuse? c- cCORRECT cANS✔✔She cmust creport cthe ccard
cimmediately cbefore cany cunauthorized cwithdrawals care cmade.
Which cof cthe cfollowing care cincluded cin cthe cfinance ccharge cfor ca cloan? c-
cCORRECT cANS✔✔- cinterest ccharged cfor cthe cloan
- cloan corigination cfees
- cannual cloan caccount cfees
-ALL cOF cTHE cANSWER cCHOICES cARE cCORRECT
Which cof cthe cfollowing cterms cbest crepresents cthe camount cof cmoney cthat cis
cborrowed, cand cwhich cmust cbe crepaid? c- cCORRECT cANS✔✔principal
, Eric cborrows c$5100 con cJanuary c1 cfor cone cyear. cInterest cis ccalculated cannually. cHe
cdoes cnot chave cto cmake cany cmonthly cpayments, cbut che chas cto crepay cthe centire
cloan cplus cinterest con cDecember c31 cof cthe csame cyear. cIf cthe cloan chas can cannual
cinterest crate cof c5% cwhat camount cwill cEric chave cto crepay con cDecember c31? c-
cCORRECT cANS✔✔$5355
What cshould cinstallment cloan clenders cdisclose cto ccredit capplicants? c- cCORRECT
cANS✔✔The cinterest crate c(as can cAPR) cand cthe cfinance ccharge c(in cdollars).
Which cof cthe cfollowing cevents cwill ctrigger cthe ccreation cof ca ccredit creport?
I.Declaring cbankruptcy.
II.Taking cout ca cstudent cloan.
III.Borrowing cmoney cfrom ca ccompany.
IV.Marriage cor cdivorce. c- cCORRECT cANS✔✔I, cII, cand cIII conly
Which cof cthe cfollowing cnegative cfinancial cbehaviors cwill cstay con cyour ccredit creport
cthe clongest? c- cCORRECT cANS✔✔declare cbankruptcy
Under ccurrent claw, cwhich cof cthe cfollowing crequests cis callowed? c- cCORRECT
cANS✔✔Both cthe cFederal cAviation cAdministration crequests cyour ccredit creport
cbefore cissuing cyou ca cpilot's clicense cand ca ccar cdealer crequests cyour ccredit creport
cbefore ctaking cyou con ca ctest cdrive.
Which cof cthe cfollowing cstatements cregarding caccess cto cindividual ccredit creports cis
cmost caccurate? c- cCORRECT cANS✔✔Insurance ccompanies ccan cview ca ccustomer's
ccredit creport cwhen cunderwriting cinsurance cpolicies.
To ccorrect cinaccurate, cfraudulent, cor cother cerroneous cinformation con cyour ccredit
creport, cwhich cof cthe cfollowing cis cthe cbest ccourse cof caction? c- cCORRECT
cANS✔✔Contact cthe cprimary cnational ccredit cbureaus cby cwriting ca cletter cand
cnotifying cthem cof cthe cinaccurate cinformation.
The cthree cprimary cnational ccredit cbureaus care: c- cCORRECT cANS✔✔TransUnion,
cEquifax, cand cExperian.
Most cof cthe cinformation ccontained cwithin ca ccredit creport cis creported cto ccredit
cbureaus cby: c- cCORRECT cANS✔✔creditors
How cmany cyears ccan ccredit creporting cagencies cmaintain cnegative cinformation
c(excluding ca cbankruptcy) con cyour creport? c- cCORRECT cANS✔✔7
Who cdecides cto cgrant cor cdeny cyour ccredit capplication? c- cCORRECT cANS✔✔???
Which cof cthe cfollowing cstatements cregarding caccess cto cindividual ccredit creports cis
cmost caccurate? c- cCORRECT cANS✔✔Insurance ccompanies ccan cview ca ccustomer's
ccredit creport cwhen cunderwriting cinsurance cpolicies.
