LIFC 603 Exam 2

LIFC 603 Exam 2 Liberty University

1. A rate of interest that is applied to a loan or credit card that is calculated for a period of time other than a year is called the Periodic Interest Rate.
2. An ordinary annuity is an equal sum of money paid or received at the end of equal periods of time.
3. Principal is the amount of money borrowed or lent.
4. ______ is the key to financial literacy.
5. A loan application fee is always included in the annual percentage rate.
6. The interest rate stated on the face of a loan document is the:
7. It’s not enough to just make money.  You have to create automatic mechanisms to keep some of the money you make.
8. A mortgage payment is a variable monthly expense.
9. Positive ways to deal with too much debt include all of the following except:
10. Parts of the seven step process to developing a spending plan includes:
11. Debts that are not considered “forgiven debts” include all of the following except:
12. The “C’s” of Credit include the following except:
13. Savings should be budgeted for the end of the month spending.
14. Generally included in the APR are a few of the following except:
15. One effect of claiming bankruptcy is that obtaining credit in the future will be more difficult.
16. When paying off credit card debt, start by:
17. The current reality in the U.S. is that:
18. The following are true of inflation except:
19. Most of the following are considered closed-end credit.  Which one is not?
20. Without a plan, you have no control over where you will end up.
21. Some warning signs of possible debt trouble include:
22. Characteristics of a successful spending plan include all of the following except:
23. An emergency fund should include:
24. A reason why some people tend to spend too much is because of peer pressure.
25. An interest rate is calculated by using: