FCS EXAM 3 QUESTIONS & ANSWERS
2025/26
1 of 47
Term
The borrower is a slave/servant of theProverbs 22:7
Give this one a try later!
Cash loan- the borrower receives cash then uses it to make purchases, pay off other
loans, or make investments
Purchase loan- (sales credit) the consumer makes a purchase on credit with no
cash transferring from the lender to the borrower.
learning to negotiate
, lender
stay in debt longer, APR annual percentage rate (interest plus fees)
Don't know?
2 of 47
Term
What is open-ended or revolving credit?
Give this one a try later!
Elements of a monthly real Down payment, at initial payment
estate payments consisting of made in the context of buying
Principal, Interest, real estate expensive items on credit, such as
Taxes, and homeowner's a vehicle or home
Insurance
Arrangement in which credit
a vehicle that was in the shop
is extended in advance of
for repairs four times for the
any
same
transaction so that
problem in the first year
borrowers do not need to
after purchase
reapply each time they
need to use credit
Don't know?
3 of 47
Term
,Describe how a cash loan and a purchase loan differ. Pg. 211-212
Give this one a try later!
Bank- Open-ended credit account with a financial institution that allows the
holder to make purchases almost anywhere.
Retail- Allow customers to make purchases on credit at any of the outlets of a
particular retailer.
Travel-
1) annual fees
2)transaction fee
3) balance transfers
4) cash advance fee
5) late fee
6) over-the-credit-line fee
Avoided by doing research "an apparently low-rate card may turn into a higher-
cost card when all fees are considered." Manage money (don't over-draw)
Cash loan- the borrower receives cash then uses it to make purchases, pay
off other loans, or make investments
Purchase loan- (sales credit) the consumer makes a purchase on credit
with no cash transferring from the lender to the borrower.
Unsecured- granted solely based on the good credit character of the borrower
(signature loan backed by the borrower's signature)
Secured- cosigner or collateral, lien is a legal right to seize and dispose of
(usually sell) property of a claim. once the loan is paid, the lien is removed.
Acceleration clause, part of credit contract stating that after a specific number of
payments are unpaid the loan is considered in default and all remaining
installments are due and payable upon demand of the creditor
Don't know?
, 4 of 47
Definition
List that shows all the monthly payments, the portions that will go
toward interest and principal, and the debt remaining after each
payment is made throughout the life of the loan. when you take out
a mortgage you get a full schedule
Give this one a try later!
What is the goal of comparison What is an annual fee charged to
shopping? Pg. 229 the cardholder? Pg. 202
What is an
What is small claims court? Pg. 243 amortization
schedule? Pg. 271
Don't know?
5 of 47
Term
What three aspects of a vehicle purchase should be negotiated? In
what order? Pg. 237
Give this one a try later!
a vehicle that was in the shop
Negotiate price, negotiate
for repairs four times for the
interest rate, negotiate trade
in same
2025/26
1 of 47
Term
The borrower is a slave/servant of theProverbs 22:7
Give this one a try later!
Cash loan- the borrower receives cash then uses it to make purchases, pay off other
loans, or make investments
Purchase loan- (sales credit) the consumer makes a purchase on credit with no
cash transferring from the lender to the borrower.
learning to negotiate
, lender
stay in debt longer, APR annual percentage rate (interest plus fees)
Don't know?
2 of 47
Term
What is open-ended or revolving credit?
Give this one a try later!
Elements of a monthly real Down payment, at initial payment
estate payments consisting of made in the context of buying
Principal, Interest, real estate expensive items on credit, such as
Taxes, and homeowner's a vehicle or home
Insurance
Arrangement in which credit
a vehicle that was in the shop
is extended in advance of
for repairs four times for the
any
same
transaction so that
problem in the first year
borrowers do not need to
after purchase
reapply each time they
need to use credit
Don't know?
3 of 47
Term
,Describe how a cash loan and a purchase loan differ. Pg. 211-212
Give this one a try later!
Bank- Open-ended credit account with a financial institution that allows the
holder to make purchases almost anywhere.
Retail- Allow customers to make purchases on credit at any of the outlets of a
particular retailer.
Travel-
1) annual fees
2)transaction fee
3) balance transfers
4) cash advance fee
5) late fee
6) over-the-credit-line fee
Avoided by doing research "an apparently low-rate card may turn into a higher-
cost card when all fees are considered." Manage money (don't over-draw)
Cash loan- the borrower receives cash then uses it to make purchases, pay
off other loans, or make investments
Purchase loan- (sales credit) the consumer makes a purchase on credit
with no cash transferring from the lender to the borrower.
Unsecured- granted solely based on the good credit character of the borrower
(signature loan backed by the borrower's signature)
Secured- cosigner or collateral, lien is a legal right to seize and dispose of
(usually sell) property of a claim. once the loan is paid, the lien is removed.
Acceleration clause, part of credit contract stating that after a specific number of
payments are unpaid the loan is considered in default and all remaining
installments are due and payable upon demand of the creditor
Don't know?
, 4 of 47
Definition
List that shows all the monthly payments, the portions that will go
toward interest and principal, and the debt remaining after each
payment is made throughout the life of the loan. when you take out
a mortgage you get a full schedule
Give this one a try later!
What is the goal of comparison What is an annual fee charged to
shopping? Pg. 229 the cardholder? Pg. 202
What is an
What is small claims court? Pg. 243 amortization
schedule? Pg. 271
Don't know?
5 of 47
Term
What three aspects of a vehicle purchase should be negotiated? In
what order? Pg. 237
Give this one a try later!
a vehicle that was in the shop
Negotiate price, negotiate
for repairs four times for the
interest rate, negotiate trade
in same
