Ramsey Lesson 4 Question Preview (ID: 61010)


Credit And Debt. TEACHERS: click here for quick copy question ID numbers.

the fee a credit card company charges for the use of their credit card
a) late fee
b) annual fee
c) credit fee
d) interest fee

the maximum amount of money the lender is willing to loan to an applicant
a) credit limit
b) balance limit
c) transfer capacity
d) maximum apr

the total cost of using credit including interest and fees
a) interest fee
b) cost of credit
c) players fee
d) finance charge

the charge for setting up a loan (often associated with home loans)
a) origination fee
b) founders fee
c) principal fee
d) interest fee

the length of time you have to pay the loan (Remember, the longer the loan, the lower your monthly payment and the greater the interest paid.)
a) balance length
b) mortgage
c) Loan Term
d) origination length

the length of time that the lender charges no interest on money borrowed when you pay off your balance in full each month
a) Grace Period
b) monthly term
c) cash time
d) mortgage length

the cost of the loan each year expressed as a percentage (All lenders are required by law to calculate APR the same way.)
a) Annual Percentage Rate
b) APY
c) interest rate
d) cost of doing business (codb)

lower interest rate offered by credit card companies, usually for a short period of time, to entice you to sign up for credit with them (Eventually, the introductory rate expires and a new increased rate takes effect.)
a) bait and switch
b) grace rate
c) Introductory Rate
d) beginner rate

which of the following is a credit reporting agency?
a) experian
b) united
c) gracemed
d) transportation inc

which of these says .... i love credit!
a) bank balance
b) cash balance
c) credit card
d) credit score

when you pay off the smallest debt you have and work up to the largest one, it is called the debt ...
a) momentum
b) bulldozer
c) elephant
d) snowball

which of the following is one of the foundations from Ramsey
a) pay $100 more than the minimum balance on your credit card
b) buy a junky car
c) save $500 in an emergency account
d) go to college

which of the following % rates can you expect to pay for a credit card?
a) 20-25%
b) 5-10%
c) 12-17%
d) 30-40%

the original amount of a loan; the total amount borrowed before interest
a) Interest
b) Principal
c) Balance
d) Equity

the additional cost a lender charges for borrowing their money​​​​​​​
a) Mortgage
b) Principal
c) Equity
d) Interest

the amount of time, in months, that you’ll be making payments​​​​​​​
a) Limit
b) Term
c) Balance
d) Mortgage

the loss of value of an asset over time​​​​​​​
a) Negative Equity
b) Negative Return
c) Depreciation
d) Underwater Asset

when the value of an asset falls below what is owed on it
a) Negative Equity
b) Underwater
c) Negative Balance
d) Depreciation

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