Understanding Credit and Financial Preparedness

Which of the following debts remains even after filing for bankruptcy?

• Car loan

• Medical bill

• Student loan

• Credit card debt

An uncollateralized loan is ______.

• A loan not backed by a co-signer who agrees to cover the amount of the loan

• A personal loan without assets pledged as security in case of default

• A home equity loan

• A loan taken against a life insurance policy

What is one reason a bank might honor a check for more than the account balance?

• The account holder has a high credit score.

• The account holder has overdraft protection.

• The account holder has relatives with accounts at the bank.

• The account holder has had an account for over a decade.

To open a savings or checking account at a bank, a person must provide a ______.

• government-issued identification

• a copy of their high school diploma

• a credit card

• a paycheck

When determining a person's net worth, which of the following is considered an asset?

• A certificate of deposit (CD)

• A credit report

• A medical bill

• A student loan

Fill in the blank: A ________ is considered an asset when calculating net worth.

• credit report

• medical bill

• certificate of deposit (CD)

• student loan

When a check is returned due to insufficient funds, it is referred to as having ______.

• been postdated.

• been voided.

• bounced.

• cleared.

• The carton of six eggs.

• The carton of twelve eggs.

• Both offer equal value.

• There isn’t enough information to determine the better value.

The drawback of choosing the longest possible loan term is that it increases the:

• amount of collateral needed.

• interest rate.

• monthly payment.

• total interest paid over the life of the loan.

What should you do with your PINs to avoid identity theft?

• Share with trusted friends

• Write them down

• Use them as passwords

• Share on social media