Study5MObrien

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Saint Charles Community College *

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PERSONAL F

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Finance

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Feb 20, 2024

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docx

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4

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Name: Madeleine O'Brien Date: July 16, 2022 Graded Assignment Section 6 Study Questions Instructions Save the file in your Finance folder, and name it with Study, the section number, and your first initial and last name. For example, Jessie Robinson's study questions for Section 1 would be named Study1JRobinson. Answer the questions for each lesson on the same day that you read the lesson. Save the file before closing it each day. Then turn in your answers to the study questions at the end of the section. Review Lesson 4 of the Course Overview for instructions about turning in your study questions. Assignment Total score: ____ of 9.0 points Answer each question fully. Complete sentences are not necessary. Lesson 1 (Score for Question 1: ___ of 0.5 points) What is credit? Answer: A commitment to pay for something in the future, instead of paying for it right away. (Score for Question 2: ___ of 0.5 points) What is a credit score? Answer: A number that tells lenders how likely you are to make payments on time. (Score for Question 3: ___ of 0.5 points) What is installment credit? Answer: When you borrow a specific amount and agree to pay it in a specific number of payments of equal amounts. (Score for Question 4: ___ of 0.5 points) What is revolving credit? Answer:
When you are approved for borrowing up to a specific credit limit, and you can choose how much of that credit to use and when to pay it off. (Score for Question 5: ___ of 0.5 points) What is noninstallment credit? Answer: Credit that is paid all at once, in a single payment. It is usually very short term, and it doesn't usually make the borrower pay an interest rate. (Score for Question 6: ___ of 0.5 points) Name at least one section of a credit report. Answer: Credit history Lesson 2 (Score for Question 1: ___ of 0.5 points) Name at least one of the steps in establishing credit. Answer: Open a bank account. (Score for Question 2: ___ of 0.5 points) Name at least one alternate option to establishing credit if you are unable to get a credit card yet. Answer: Department store or gas cards. (Score for Question 3: ___ of 0.5 points) What is debt services default? Answer: The failure to make a payment, such as a scheduled mortgage payment or finance charge on a credit card. (Score for Question 4: ___ of 0.5 points) What is the Better Business Bureau? Answer: An organization that reports on the reliablity and ethics of companies and other organizations.
(Score for Question 5: ___ of 0.5 points) What is a debt settlement program? Answer: Programs that claim they can get you out of debt by negotiating your debt to much lower amount and working out a payment plan with your creditors. (Score for Question 6: ___ of 0.5 points) What is bankruptcy? Answer: The inability to pay back your creditors, to extent that you file legal paper that put your finances under the supervision of the court system. Lesson 3 (Score for Question 1: ___ of 0.5 points) What is an annual percentage rate? Answer: An annual interest rate that doesn't take into account any compounding of interest that happenes during that year. (Score for Question 2: ___ of 0.5 points) What is an annual percentage yield? Answer: An annual interest rate that does take into account compounding that happens during that year. (Score for Question 3: ___ of 0.5 points) Name at least one advantage of credit cards. Answer: Building credit. (Score for Question 4: ___ of 0.5 points) Name at least one disadvantage of credit cards. Answer: Feea and Interest. (Score for Question 5: ___ of 0.5 points) If you take out a $1,000 loan for college at 7% interest, what is the principal?
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Answer: $1,000 (Score for Question 6: ___ of 0.5 points) What is a loan? Answer: Money that you borrow from a person or oranization with the commitment to pay back the amount in full, usually with a specific time limit, number of payments, and interest rate agreed on uin advanced.