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MM SPR Teks Review
Study Guide for Spring Teks Test
| Question | Answer |
|---|---|
| A rule of thumb for determining if you have an acceptable amount of installment loan debt state that it should not exceed | 20 % of yearly take-home pay |
| The accumulation of assets over your lifetime is called | wealth |
| The legal process of removing a tenant from rental property is called | eviction |
| This type of credit allows the account holder to charge to the account repeatedly and have an ongoing balance. Examples would be Bank credit cards, such as MasterCard and Visa. | revolving |
| This is a written agreement that allows a tenant to use property for a set period of time at a set rent payment | lease |
| A person's estate would not include his/her | debts |
| This is a portion of a corporation’s profits distributed to stockholders | dividend |
| Unplanned or possible events are known as | contingencies |
| This is someone who borrows money | borrower |
| Usually this a person with good credit they may be required by the bank if there is no collateral for the loan | cosigner |
| Experts recommend setting aside _________ pay in an emergency fund. | 3 - 6 months |
| This is a strategy to earn more on your money than the rate of inflation. | Investing |
| When leasing a car versus buying one, the monthly lease payment is typically less than a monthly car loan payment; this is considered an | advantage of leasing |
| This is considered a disadvantage to using credit | decreased purchasing power |
| This is considered a FDIC-insured account | Money Market Account |
| Landlords are prohibited from doing this | Inspecting the property without notice |
| Tenants that move out voluntarily generally must give this amount of notice | 30 day notice |
| A credit card with a fix interest rate | The rate can be changed, a rate change cannot be applied to existing balances, and the rate cannot be changed with 60 days notice. |
| Owning stock in a company that is assessed millions in fines for violating federal safety standards in its products is an example of | company risk |
| Current credit card legislation allows credit card companies to | raise minimum payments by up to twice the existing percentage |
| When a rental agreement contains a purchase option at the end of the rental term, , renter is said to have | the right of first refusal |
| An Example of short term planning would be | planning a vacation |
| Being financially responsible does not mean you will have | an easy life |
| The legal process that allows a lender to take possession of a house because the borrower does not meet his or her mortgage obligations is called | foreclosure |
| When a company’s overseas factory is destroyed during protests and rioting, this is an example of | political risk |
| The interest rate that banks offer to their most creditworthy business customers is the | prime rate |
| An investment portfolio should | have a strong foundation of safe investments |
| Investing is | sometimes explained as using money to make more money |
| When you owe more on a car than it is worth, the loan is said to be | upside down |
| This is not a cost of financial irresponsibility | low or no income |
| This is true of an FHA mortgage loan | It allows for a smaller down payment. It requires you to pay a monthly mortgage insurance premium. It is backed by the Federal Housing Administration (FHA). |
| Three methods used to compute interest charges on revolving credit accounts include | adjusted balance method, previous balance method, average daily balance method |
| The higher the rating on an investment-grade bond, | the lower the interest rate you will earn |
| The Five steps in creating a buying plan are | 1.Define You Spending Goal 2. Choose the Item to Buy 3. Define Criteria 4. Set a Timeline 5. Set a Spending Limit |
| This is a justifiable reason for not refunding a tenant’s security deposit | holes in the walls |
| This law grants you the right to know what is in your credit file? | Fair Credit Reporting Act |
| The Truth in Lending Act requires this to be put in writing before a loan or credit agreement is signed | any service fees or other costs added to the price, the annual percentage rate, and the total finance charge and method of computing it |
| Implementing a buying plan involves | comparison shopping |
Created by:
mrstephens
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