Credit Test pt 3

  1. How does the government generate the majority of their income?
    Pie Charts
  2. What does the Gov. spend it on?
    • Social Security
    • Medicar
    • Retirement
    • National defense
    • Veterans
    • Debt
  3. What is income tax?
    Money from jobs
  4. What is Gross?
    Amount you earn before taxes are withheld
  5. What is Net Income?
    The amount you recieve after withholdings are subtracted from your gross pay
  6. What are withholdings?
    Taxes your employer collects by deducting or withholding money from paycheck
  7. FICA?
    • Federal
    • Insurance
    • Contributions
    • Act
  8. FICA requires us to do what?
    Contribute to Social Security and Medicare
  9. Income tax is based on __ and __?
    Income, Family Situation
  10. What is a Collateral?
    personal property pledged to back the loan
  11. Advantages of Credit
    • Emgerencies funds
    • Enjoyment
    • Safer than carring money
  12. Disadvantages of Credit
    • Cost more than cash
    • Leads to overspending
    • Damage rep if used badly
  13. What is Creditworthiness?
    A measure of your reliability to repay a loan, you must have the abilitly and willingness to repay your debt.
  14. What is Character?
    • Past bill paying experience
    • Job stable
  15. What is Capacity?
    • Income payments
    • Repay the debt?
  16. What is Capitol?
    • Assets left over after debt is cleared
    • All things you own
  17. What is Collateral?
    What can you pledge?
  18. What is a credit report?
    A detailed account of an individual financial standings issued by a credit bureau
  19. What does the Fair Credit Reporting Act do?
    • 1) allows you access to your report
    • 2) put your side of the story in the report
    • 3) correct mistakes
    • 4)
  20. What does the Equal Opportunity Credit Act do?
    llegal to refuse credit based on race, color, religion ...etc
Card Set
Credit Test pt 3
On the note sheets