Dave Ramsey Debt Unit Test

Front

What is the Fair Credit Reporting Act?

Back

The Fair Credit Reporting Act is a federal law that regulates credit reporting agencies and ensures that the information they gather and distribute is a fair and accurate summary of a consumer’s credit history.

Front

What is a credit card?

Back

A credit card is a plastic card used to make purchases now and pay for them later.

Front

What is an Annual Fee in relation to credit cards?

Back

An Annual Fee is a yearly fee charged by the credit card company for the convenience of using the credit card.

Front

What does Depreciation mean?

Back

Depreciation refers to a lessening in value of an asset over time.

Front

What is a paradigm?

Back

A paradigm is a model or example; it can also refer to a school of thought.

Front

What is the purpose of the Truth in Lending Act?

Back

The Truth in Lending Act is designed to promote informed use of consumer credit by requiring disclosures about its terms and cost.

Front

What is a credit limit?

Back

A credit limit is the maximum amount of credit that a financial institution extends to a client.

Front

What is debt consolidation?

Back

Debt consolidation is the process of combining multiple debts into a single loan, often with a lower interest rate.

Front

What is the Annual Percentage Rate (APR)?

Back

The Annual Percentage Rate (APR) is the annual rate charged for borrowing or earned through an investment, expressed as a percentage.

Front

What is a finance charge?

Back

A finance charge is the cost of borrowing money, typically expressed as a percentage of the amount borrowed.