← mizzou finance Test
5 Written Questions
5 Matching Questions
- interest rates
- comprehensive insurance
- Annual fees
- types of people who need life insurance
- warranty of fitness
- a - anyone who supports a family
- b _______ is a for using a companies credit card.
- c _____ are the amount of interest per year expressed as a % of the amount borrowed.
- d - holds the seller accountable for a recommend use.
Ex. 0 degree sleeping bag will work in the winter
- e - protects your car from other types of damages
EX. weather, fire, theft
5 Multiple Choice Questions
- - Annual percent rate= expressed as a true interest charged over the life of a loan, also it includes fees associated with the loan
- ______ are credit issued by finance companies, credit unions, or banks.
they generate income by:
-charging a discount to the merchant
-charging interest/ annual fees to card holders
- - a amount of time you pay for life insurance.(10 yrs)
- -the amount you pay for insurance
- - actual cost value: cost of replacement
-replacement cost: full cost of repaired damage
-extended replacement cost: full cost of replacing/ rebuilding outside limits
5 True/False Questions
extend warranties → - a promise to preform/ pay for certain repairs or services.
premiums for car insurance and deduables → -stock life: owned by stockholders
-mutual life: owned by policy holders who share profits
-fraternal societies: EX. knights of Columbus, Free Masons
-Federal government: veterans and members of uninformed services
leasing/ buying a car and the types of loans → - a product warranty created by the state law, all states have them
-every purchase you make is covered by Implied/written warranties
What factors the cost of a product (name brand v. Generic) → - payment history effects your _______ the most.
-If you continue to payoff your credit, companies will continue to give you money
-the scale is 300-900
-it also effects your ability to obtain a loan/interest rate
Open ended credit → - a credit line that borrows up to a maximum limit.
-It stays open after a balance has been paid off. can be used again
-Mainly for credit cards/ home equity loans