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HDFS 2450 > Exam 4 > Flashcards

Exam 4 Flashcards

1
Q

Personal fin an easy process 3 steps

A
  1. Awareness and set goals
  2. Create and activate financial plans
  3. Evaluate and revise plans
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2
Q

Balance sheet

A

Shows what a family saves, owns, and makes?

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3
Q

Truth in savings acts

A

1991 - requires institutions to say the APR yield, fees, minimum balance information

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4
Q

Bank secrecy act 1970 requires banks to report

A

Suspicious activity report when they suspect issues

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5
Q

CFP

A

Most recognized credential for financial planners

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6
Q

Financial planner vs. financial counselor vs. financial coaching vs. financial educator

A

Planner: long term plan

Counselor: short term intense issues

Coach: work to change financial behavior of client-solve the problem together

Educator: teach students about financial principles

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7
Q

Interest

A

The cost of borrowing money

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8
Q

Two types of loans

A

The reason for the loan

The repayment schedule

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9
Q

Co-signer

A

Someone who agrees to repay the loan is the borrower defaults

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10
Q

Collateral

A

Property or some asset to secure the loan

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11
Q

Liens

A

Legal rights to take and hold property if the person with the loan does not pay up

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12
Q

Fair credit reporting act FCRA

A
  • You have the right to get a credit report

- You have the right to know the name of anyone who received your credit report in the last year

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13
Q

Fair debt collection practices act FDCPA

A
  • Can contact debtor from 8am - 9pm
  • may not contact debtor at work
  • cannot harass, or abuse debtor
  • may not lie when collecting debts
  • must stop contacting debtor if debtor asks them in writing
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14
Q

Median FICO score

A

623

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15
Q

35% affect on credit score

A

History of payments, bills, or credit payments

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16
Q

30% affect on credit score

A

The amount of money you owe. Keep your Debt level less than 30%, how much of your allowed credit that you use.

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17
Q

15% affect on credit score

A

Length of credit history

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18
Q

10% affect on credit score

A

Inquiries, each time you apply for credit, an inquiry is added to your credit report.

19
Q

10% affect on credit score (not inquiry)

A

Having different types of credit, credit card, car loan, mortgage,

20
Q

Types of inquiries

A

Voluntary - you apply for a loan, credit card, job, housing, or utilities

Involuntary - unsolicited requests for credit such as pre-approved credit cards.

21
Q

Two types of bankruptcy

A

Chapter 7

Chapter 13

22
Q

Chapter 7 Bankruptcy

A

“Straight liquidation” good if you have lots of unsecured debt

23
Q

Chapter 13 bankruptcy

A

Usually Has regular income, allows debtor to rely some of the debt they owe

24
Q

What bankruptcy can do:

A

Eliminate legal responsible for many debts

Stop foreclosure on a home

25
Q

Peril in insurance terms

A

Natural disaster that causes some loss

26
Q

Hazard in insurance terms

A

Is condition which arises with chance of loss

27
Q

Parts of car insurance

A 
Bodily injury
Collision
Comprehensive
Uninsured or underinsured motorist
Medical payments
Towing insurance
28
Q

Factors that affect auto insurance

A 
Driving history
Type of vehicle
Gender
Age
Territory- where you live
29
Q

Homeowners insurance

A

Pay to rebuild or repair your home, and replace personal possessions lost to certain events

30
Q

Property insurance

A

Pays for losses to home/personal property due to various factors

31
Q

Insurance adjuster

A

Determines the amount of claim loss or damage payable - should be licensed

32
Q

Renters insurance

A

Provides protection for the tenants personal property

33
Q

Health insurance

A

Most costly, and most vital

34
Q

Medicare

A 
Insurance program for 65 and older
4 parts
A. Hospital
B. Medical insurance e
C.
D. Prescription
35
Q

Medicaid

A

Insurance program for low-income people

36
Q

Health care plan problems

A 
Payment or billing services
Availability of doctors
Too much unnecessary care 
Lack of transparency 
Too much administrative paperwork
37
Q

Disability income insurance

A

Pays benefits to policy holder when they are incapable of working. Typically pays 60-80% of their paycheck

38
Q

Two types of life insurance

A

Term - set amount each month, for a set time, often renewable
Whole - has the savings part

39
Q

Long term care insurance

A

Provides nursing home, assisted living, or in home care benefits not covered by Medicare

40
Q

Credit insurance - not good

A

Protects a loan or mortgage in the case the person cannot make the payments

41
Q

Insurance scams - consumer rights

A

Choose company

Obtain fair quotes for coverage

42
Q

Preferred stock

A

Regular dividend payouts
Preferred access to assets in downturn, and dividends
No voting power
More stable prices, less likely for large gains

43
Q

Annuity

A

Contracts which the insurer promises the insured a series of periodic payments
Tax deferred growth

HDFS 2450 (1 decks)

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