Test 4

Question 1

What is money owed to another person/ company

Answer 1

Debt

Question 2

What do credit companies never advertise?

Answer 2

the full price

Question 3

What have credit cards worked decades to convince us of?

Answer 3

they are simply offering a service

Question 4

Is there such a thing as good debt?

Answer 4

no

Question 5

what does credit make lots of money for?

Answer 5

companies, banks, and other lenders

Question 6

what did our great grandparents think about debt?

Answer 6

it was a sin

Question 7

what did our grandparents think about debt?

Answer 7

it was dumb

Question 8

what did our parents think about debt?

Answer 8

it was okay to borrow on a few things

Question 9

concerning credit what happens once you turn 18?

Answer 9

you become a target

Question 10

how do credit card companies often make you feel through their commercials?

Answer 10

cool, powerful, like you have access to anything

Question 11

What will only paying the minimum payments on your debt result in?

Answer 11

keep you in debt for years

Question 12

what is credit that automatically renews whenever a payment is made to reduce debt

Answer 12

revolving credit

Question 13

what is something owned and offered as Security on debt?

Answer 13

Collateral

Question 14

what is a legal claim against an asset until the debt is repaid?

Answer 14

Lien

Question 15

What is asset that increases in value over time?

Answer 15

Appreciating asset

Question 16

what is the increase in value of a home over time?

Answer 16

Equity

Question 17

what is failure to repay a loan on time?

Answer 17

Default

Question 18

what is a loan for a fixed amount of money that’s paid back in monthly installments?

Answer 18

installment credit

Question 18

what is an asset that loses value over time?

Answer 18

depreciating asset

Question 19

Who is a lender who uses deceptive or unfair or fraudulent practices on borrowers who are desperate for cash?

Answer 19

predatory lending

Question 20

what kind of credit do credit cards work as?

Answer 20

revolving credit

Question 21

what do secured and unsecured loans require?

Answer 21

collateral

Question 22

How long do mortgages typically last for?

Answer 22

15 to 30 years

Question 23

what percentage of Millennials are delaying getting married because of debt?

Answer 23

21%

Question 24

what percentage of Millennials are delaying having children because of debt?

Answer 24

21%

Question 25

what percentage of Millennials are delaying saving for retirement because of debt?

Answer 25

40%

Question 26

what percentage of Millennials are delaying buying a home because of debt?

Answer 26

47%

Question 27

what percentage of new cars are purchased with borrowed money?

Answer 27

90%

Question 28

a car is what kind of asset?

Answer 28

depreciating asset

Question 29

What are some types of predatory lenders?

Answer 29

payday loans, title loans, and pawn shops

Question 30

How have predatory lenders earned their name?

Answer 30

by praying on desperate people

Question 31

what is the statistical number used to represent a consumer's credit worthiness?

Answer 31

credit score

Question 32

what is the company that collects credit rating info and makes it available?

Answer 32

Credit Bureau

Question 33

what is another name for a credit score?

Answer 33

FICO score

Question 34

what are the names of some of the main credit bureaus?

Answer 34

Expiration, TransUnion, Equifax

Question 35

what is important to do with a credit report?

Answer 35

check it regularly

Question 36

What should you do if you see errors on your credit report?

Answer 36

contact your credit bureau

Question 37

how do credit card companies make most of their money?

Answer 37

interest card holder fees, transaction fees

Question 38

what is the company that can help protect you against identity theft?

Answer 38

LifeLock

Question 39

interest builds over time, which means what?

Answer 39

you pay more the longer you carry a balance

Question 40

what do you do in the long run when you buy things with credit?

Answer 40

you pay more than the original amount

Question 41

what is the closest thing to use in cash?

Answer 41

a debit card

Question 42

do you have to have a credit card to financially survive?

Answer 42

No

Question 43

what is the original amount of a loan?

Answer 43

Principal

Question 44

What is the amount of time in months that you'll be making payments?

Answer 44

term

Question 45

What is it called when the value of an asset Falls below what it is owed on?

Answer 45

negative equity

Question 46

what are two ways a car loan can work?

Answer 46

direct financing and leasing

Question 47

over 70% of loans for new cars are for over how many months?

Answer 47

60 months

Question 48

what is the most expensive way to drive a car?

Answer 48

Leasing

Question 49

what do lease agreements typically come with?

Answer 49

rental charges/taxes/fees

Question 50

Your choice to live debt free begins with what?

Answer 50

Mindset

Question 51

what is the best way to get debt paid off as quickly as possible?

Answer 51

snowball method

Question 52

how you spend your money reflects what?

Answer 52

Who You Are

Question 53

if generosity doesn't come naturally to you, what must you do?

Answer 53

learn how to be more giving

Question 54

what do you have without debt?

Answer 54

Freedom

Question 55

possible bonus: write out proverbs 22:7

Answer 55

"The rich ruleth over the poor and the borrower is servant to the lender"

Question 56

Possible bonus: describe in detail what the Bible teaches about generosity

Answer 56

(use John 13:35, 2nd Corinthians 9:7, Luke 6:38, 2nd Corinthians 9 6, Psalm 112)

Question 57

Possible Bonus: Describe detail the debt snowball method