Topics for TEST Two Chapters 7-12

Topics for TEST Two Chapters 7-12 - Personal Finance TEST...

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Personal Finance TEST Two Chapters 7-12 Question Topics Chapter 7 1. Examples of the least expensive, the medium priced, and the most expensive loans. a. Parents or family members, CD, whole life insurance b. Commercial banks, federal savings banks, credit unions c. Financial companies, retailers, banks through credit cards 2. Finance charges and annual percentage rate a. The total dollar amount you pay to use credit b. Percentage cost of credit on a yearly basis i. R=(2*n*total dollar cost of credit)/(Principle(total number of payments scheduled to pay off the loan+1) 3. What can you do to get a lower interest rate? 4. Add-on interest method a. Interest is calculated on the full amount of the principal. Payments decided by dividing principal plus interest by the number of payments to be made 5. Excess indebtedness may result in … 6. Reasons for indebtedness a. Emotional problems, use of money to punish, instant comfort, keeping up with the joneses, lack of communication, financial charges 7. Signals of potential debt problems a. Paying the minimum, increasing balance, missing payments, use of savings, payment notices, not communicating, depending on overtime, borrowing money to pay debts, denied credit, 8. Drawbacks of borrowing from parents or family a. Cause problems 9. Calculate charges for a cash advance a. Cash advance fee + interest for one month Chapter 8
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1. Causes of financial difficulties 2. Store-brand products versus name brand a. Low cost alternatives to famous name brand 3. How does small claims court differ from regular court a. Settles small disputes
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Topics for TEST Two Chapters 7-12 - Personal Finance TEST...

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