FP #1-4 Review

If you mismanage your checking account by bouncing checks repeatedly or ignoring overdraft notices, which of the following results may happen to you?

• You will be charged a penalty fee for a "returned" (bounced) check.

• You may pay higher rents or interest rates because of your poor credit history

• If you aren't aware of your "negative balance" and don't put more funds in your account you bounce more checks and receive more penalty fees.

• All the above.

Which answer applies to "fine print"?

• Companies only use fine print to save ink and paper.

• You don't need to read the fine print

• You should always read the fine print.

• Companies always place the fine print on top of the page.

What answer best describes what happens in a money flip?

• If you have a twenty-dollar bill, a stranger will flip it for two tenners.

• If you pay $50 by cash app, a stranger will flip it to a payment app for $100

• If you have a twenty-dollar bill, a stranger will flip it for two tenners

• The stranger offers to double your money input by "working the system".

How can you get scammed through your money or cash app?

• By calling a fraudulent support number and giving them information.

• By receiving an \"accidental payment\", which is later reversed.

• After selling something, the money you received from the buyer is returned because he paid with a stolen credit card.

• All of the above.

You owe $1,000 on a credit card and choose to pay the minimum payment each month. Which answer is correct?

• Making minimum payments means you're saving money.

• Making minimum payments means it could take thirty or forty years to pay off that $1,000 credit card bill.

• Making minimum payments doesn't cost me any more money over a long period of time.

• Making minimum payments gives you the ability to buy more stuff with your credit card.

Good credit gives you options. Bad credit takes away your options. Choose the one correct answer.

• You have good credit. You are forced to take the credit card which charges rip-off rates.

• Bad credit can help you get better cars, loans and jobs.

• You have good credit. You can choose the credit card with the lowest interest rate.

• You have bad credit. You can easily get a store charge card.

What is a "debt-to-income" ratio?

• How much money you have to make every year in your job.

• How much money you owe in total versus how much you make.

• How much money you have to pay back on your income.

• How much money you owe on your student loan compared with how much you want to make in your job.

  Question 10

What is the best way to hurt your credit rating?

• What is the best way to hurt your credit rating?

• Consult your parents on good borrowing practices

• Make all your payments on time, every time.

• Make all your payments early except your credit cards. It's OK to pay them late.

You mailed in your credit card payment late but when you wrote the check you dated it for January 13th even though the due date is the 15th. Which statement is true?

• Since the date on the check is before the due date it does not matter when it was mailed in.

• The date on the check does not matter as long as the credit card company gets the payment.

• The payment is still late because the payment was not received by the due date.

• You are one tricky person and it works every time.

If you are renting an apartment with a roommate and all of the utilities are in your roommate's name why would your payments not help or hurt your credit rating?

• Because unless my name is on the account the credit bureaus do not recognize the payments.

• Because credit bureaus do not look at utility payments as a form of building credit worthiness.

• It will only count if I pay by check so that there is a documented transaction.

• It would help my credit rating.