Unit 6 Review

Front

Which of the following is subtracted from assets to determine net worth? Income, wealth, Credit score, Liabilities

Back

Liabilities

Front

Which of the following is would be an annual cost of owning a home? Rental income, Car insurance, Grocery expenses, Property taxes, homeowners insurance, and maintenance costs

Back

Property taxes, homeowners insurance, and maintenance costs

Front

Which of the following is not a benefit of home ownership? Building equity and stability, increase in value, Freedom to make modifications, Increasing debt and instability

Back

Increasing debt and instability

Front

One of the advantages of leasing a property is that the expense of repairs is —

Back

handled by the property owner or landlord

Front

Which of the following is a potential benefit of making a donation to a charitable organization? Options: Eligibility for a tax deduction, Increase in credit limit, Opportunity for investment, higher income tax

Back

Eligibility for a tax deduction

Front

What is a primary reason for obtaining insurance?

Back

To cover potential losses or unexpected events

Front

When considering personal bankruptcy, it is crucial to understand the —

Back

financial implications

Front

What is the least effective method to manage credit card debt? Options: Paying off the balance in full each month, Consolidating the debt into a lower interest loan, Making only the minimum payment each month, Seeking advice from a financial counselor

Back

Making only the minimum payment each month

Front

What is a good practice to maintain a healthy credit score? Options: Delaying bill payments, Keeping credit card balances low and paying bills on time, Applying for multiple credit cards at once, Maxing out all your credit cards

Back

Keeping credit card balances low and paying bills on time

Front

open end credit : ___________ :: closed end credit : ___________

Back

credit card : mortgage