Dave Ramsey Chapter 4 & 5 Test

Front

What is an annual fee?

Back

A yearly fee charged by the credit card company for the convenience of using the credit card.

Front

Is it true that you must establish credit in order to buy a house?

Back

False

Front

What is the total estimated student loan debt in the U.S.?

Back

Over $1 Trillion.

Front

What is a trade school?

Back

An educational institution that allows students to learn basic professional skills in two years or less, typically cutting out many general courses required by traditional universities.

Front

What is a credit report?

Back

A detailed report of an individual’s credit history.

Front

What does FICO Score represent?

Back

A credit score that represents an individual's creditworthiness.

Front

What is the purpose of a cash flow statement?

Back

To provide a summary of the cash inflows and outflows of an individual or business.

Front

What is the Debt Snowball method?

Back

A debt reduction strategy where you pay off debts from smallest to largest, gaining momentum as you eliminate each one.

Front

What is the difference between a secured and unsecured loan?

Back

A secured loan is backed by collateral, while an unsecured loan is not.

Front

What is interest?

Back

The cost of borrowing money, usually expressed as a percentage of the amount borrowed.