Contracts

Question 1

Choose the statement that describes an advantage of paying a bill through the mail with a check.

Revolt · Accepted Answer

D: You do not have to share banking information.

Question 2

Which is a possible benefit of having a good credit history?

Revolt · Accepted Answer

B: low interest rate on a car loan

Question 3

What must Freya consider before using her debit card? Check all that apply.

Revolt · Accepted Answer

A: She must be sure there is at least $135 in her bank account for the purchase.; C: She must check to see if any automatic payments are scheduled for heraccount.

Question 4

Which questions should Freya answer before using a credit card? Check all thatapply.

Revolt · Accepted Answer

A: Can I pay at least the minimum payment each month?; B: Can I make payments on time and avoid late fees?; D: How much in finance charges can I afford to pay?

Question 5

In a few sentences, explain what it means to be financially responsible.

Revolt · Accepted Answer

Being financially responsible means you are earning more than you are spending. You should also create a budget to track income and expenses, and do what you can to always pay bills on time.

Question 6

Which financial problems might cause a person to be considered a bad risk for a loan to purchase a home? Check all that apply.

Revolt · Accepted Answer

B: making late payments; C: having more debt than income; D: filing for bankruptcy

Question 7

Which expense is a bank least likely to extend a line of credit for?

Revolt · Accepted Answer

B: a flat-screen TV

Question 8

Identify possible advantages and disadvantages of using automatic withdrawal to pay bills.

Revolt · Accepted Answer

A benefit of using automatic withdrawals to pay bills is never making a late payment. A possible consequence of using automatic withdrawal to pay bills is possible overdraft charges if you don’t have enough money in the account when the payment is made. You need to remember the amount will be taken out and be sure there is enough money in the account.

Question 9

Check all that you included in your response.

Revolt · Accepted Answer

A: Pay bills on time.; B: Earn more than you spend.; C: Create a budget to track income and expenses.

Question 10

Check all that you included in your response.

Revolt · Accepted Answer

A: Automatic payments avoid late payments and fees.; B: Sometimes discounts are given for automatic payments.; C: Automatic payments can help build a good credit history.; D: You must keep track of payments to avoid overdrawing the account.

Contracts Answers

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