PERSONAL FINANCE ACTUAL TEST
QUESTIONS AND SOLUTIONS
COMPREHENSIVE REVIEW PACKAGE
●● Capacity
Answer: your ability to repay the debt. Do you have sufficient $money
to repay a loan
●● Capital
Answer: "net worth". wealth in the form of money or property owned by
a person
●● Character
Answer: good reputation, Integrity
●● Credit history
Answer: a summary of a person's borrowing and repayment history
●● 50 dollars
Answer: In the event that your credit card is stolen in the United States,
federal law limits the liability of card holders to ____ regardless of the
amount charged on the card by the unauthorized user.
,●● zero liability "Owes nothing"
Answer: if just the credit card account number itself is stolen, federal
law guarantees that the card holder has a___________to the issuer.
●● EFT
Answer: electronic funds transfer; exchange of money by sending bank
records via a computer network
●● FDIC
Answer: the federal government protects your money up to $250,000 in
a single account
●● Department store charge cards.
Answer: Which of the following is considered to be open-end credit?
●● Notify the credit card companies
Answer: A person has three credit cards with very large outstanding
balances and is unable to make payments on any of them. Which action
should the person take
●● 10 years
Answer: When a person declares bankruptcy that fact will appear on the
person?s credit report
, ●● A personal loan without assets to cover the loan amount
Answer: What is meant by an uncollateralized loan?
●● a collateralized loan
Answer: When a person brings an item to a pawnshop to obtain cash, the
transaction is considered
●● Monetary policy
Answer: Which of the following does the Federal Reserve use to
regulate the nation's money supply?
●● Salaries, wages, and tips
Answer: The primary sources of income for most people between the
ages of 20 and 35 who are not living on a pension or social security are:
●● better off financially the person is.
Answer: A person's debt ratio shows the relationship between debt and
net worth. The lower the ratio the
●● Exercise Tax
Answer: A person complains about how expensive it is to be a cigarette
smoker. One of the reasons cigarettes are so expensive is that
QUESTIONS AND SOLUTIONS
COMPREHENSIVE REVIEW PACKAGE
●● Capacity
Answer: your ability to repay the debt. Do you have sufficient $money
to repay a loan
●● Capital
Answer: "net worth". wealth in the form of money or property owned by
a person
●● Character
Answer: good reputation, Integrity
●● Credit history
Answer: a summary of a person's borrowing and repayment history
●● 50 dollars
Answer: In the event that your credit card is stolen in the United States,
federal law limits the liability of card holders to ____ regardless of the
amount charged on the card by the unauthorized user.
,●● zero liability "Owes nothing"
Answer: if just the credit card account number itself is stolen, federal
law guarantees that the card holder has a___________to the issuer.
●● EFT
Answer: electronic funds transfer; exchange of money by sending bank
records via a computer network
●● FDIC
Answer: the federal government protects your money up to $250,000 in
a single account
●● Department store charge cards.
Answer: Which of the following is considered to be open-end credit?
●● Notify the credit card companies
Answer: A person has three credit cards with very large outstanding
balances and is unable to make payments on any of them. Which action
should the person take
●● 10 years
Answer: When a person declares bankruptcy that fact will appear on the
person?s credit report
, ●● A personal loan without assets to cover the loan amount
Answer: What is meant by an uncollateralized loan?
●● a collateralized loan
Answer: When a person brings an item to a pawnshop to obtain cash, the
transaction is considered
●● Monetary policy
Answer: Which of the following does the Federal Reserve use to
regulate the nation's money supply?
●● Salaries, wages, and tips
Answer: The primary sources of income for most people between the
ages of 20 and 35 who are not living on a pension or social security are:
●● better off financially the person is.
Answer: A person's debt ratio shows the relationship between debt and
net worth. The lower the ratio the
●● Exercise Tax
Answer: A person complains about how expensive it is to be a cigarette
smoker. One of the reasons cigarettes are so expensive is that
