Financial Literacy Final

Front

One difference between a charge card and a credit card is that

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the full balance on a charge card must be paid each month.

Front

A service available to charge customers whereby purchases are not billed until much later than the standard billing time is called

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deferred billing.

Front

In the United States, the responsibility for filing a tax return rests with the individual. This defines the concept of

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voluntary compliance.

Front

In the scenario where Tammi buys a stereo system for $500, who is the debtor?

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Tammi.

Front

Subsidized student loans

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are guaranteed by the federal government.

Front

When preparing a budget, you need to focus mostly on your

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net income.

Front

Simon pays his bills on the due date or within a ten-day grace period. This would probably earn him a(n)

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good credit rating.

Front

Which of the following is organized primarily to lend money for home mortgages? savings and loan association, full-service bank, brokerage firm, credit union

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savings and loan association

Front

The unpaid portion of a loan is called

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principal

Front

The total dollar amount of all interest and fees you pay for the use of credit is called the

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finance charge