Personal Finance Essay

1134 Words Feb 20th, 2013 5 Pages

True or False
1. True 2. False—A debit card will work just fine when renting cars and checking into hotels. 3. False—The debt snowball begins with your smallest debt. 4. True 5. False—If you have to loan money to a friend, give it to them as a gift. Never co-sign a loan.

6. 7. 8. 9. 10. 11. 12. 13. 14. 15. i. b d j c k e l a f

Multiple Choice
16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. c d a a b d a d c c b d c d a

Short Answer:
31. The adult market is saturated, and credit card companies know that people are loyal to their first credit card.

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The debt snowball _____ 11. Most expensive way to finance a new car _____ 12. Using equity in a home as collateral when borrowing money _____ 13. Combining separate debt payments into one single payment _____ 14. A product aggressively marketed to consumers _____ 15. A drop in the value of property


MulTIPlE CHoICE Read each item carefully, then select the best answer.

16. Which of the following is true about using credit? a. It’s the same as using cash. b. When using credit, one spends less. c. When using credit, one spends more. d. Using credit neurologically registers as pain. 17. Payday lending and cash advance companies are aggressively targeting which group of people? a. Teens b. Elderly c. College graduates d. Military 18. If 80% of millionaires are first generation rich, than one can conclude: a. They started with nothing, did smart stuff, and became millionaires. b. They fell for the debt myths that are common in society. c. They inherited money from their family. d. They are rich so they can do whatever they want with their money. 19. On average, payday lending, cash advance and title pawn loans cost the consumer: a. 400% or more annually b. Nothing but the fee if you pay back the loan within 30 days c. Three times the APR of an average credit card d. 100-250% annually 20. Which statement is not true about debt

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