HECO 1307 Exam II Review[1]

HECO 1307 Exam II Review[1] - EXAM TWO REVIEW Chapters 7 12...

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Chapters 7 – 12 HECO 1307, Personal Finance Remember: Leave each question on your assignment. Add space after each and write a short answer response. These will provide you with a good guide in preparing for your second exam. Upload as directed. 1. What are some sources of inexpensive loans, medium-priced loans, and expensive loans? (207-208) Parents, family members, and a bank certificate of deposit. Commercial banks, federal savings bank, and credit unions. Finance companies, retailers, and banks through credit cards. 2. Define finance charge and APR. (213) Finance charge is the total dollar amount you pay to use credit cards. APR is the percentage cost of credit on a yearly basis. 3. In Exhibit 7-4, what are the reasons consumers default on loans. Excessive use of credit, Unemployment or reduced income, poor money management, divorce or separation, and medical expenses. (226) 4. What are the first three steps in Exhibit 7-3? You receive a phone call from the debt collector, within five days, the debt collector must send you a written notice stating the amount owed, the creditor’s name, and your right to dispute the debt, then you dispute the debt. (225) 5. What are the provisions of Chapter 7 and Chapter 13 bankruptcy? A debtor is required to draw up a petition listings his or her assets and liabilities, Chapter 13 a debtor with a regular income proposes to a bankruptcy court plan for extinguishing his or her debts from future earnings or other property over a period of time. (233-234) 6. Distinguish between product labeling and advertising? Product labeling includes information about operating costs, to assist you in selecting the most energy-efficient models. (246) 7. What role does company reputation play in selection of a service provider? The selection of the store. (245) 8. Define impulse buying? unplanned purchasing which can result in financial problems (245) 9. Compare national brand products to store brand products. National brand products are highly advertised items available in many stores, they are usually more expensive. Store
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This note was uploaded on 04/06/2011 for the course HECO 1307 taught by Professor Tammymata during the Spring '11 term at Tarrant County.

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HECO 1307 Exam II Review[1] - EXAM TWO REVIEW Chapters 7 12...

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