ABA CTFA Practice Test - Questions Answers, Page 30

Debit card is a card use to make transactions for cash rather than credit; replaces the need for cash or checks by initiating charges against the checking account. Its big disadvantage is that:

A line of credit issued against the existing equity in a home is called:

It is a line of credit made available to an individual on an as-needed basis.

Overdraft protection line is:

It is a type of open account offered by banks and other financial institutions that can be accessed by writing checks against demand deposit or specially designated credit line accounts. What is it?

It is referred to an investigation that involves contacting credit references or corresponding with a credit beureau to verify information on a credit application.

Using data provided by the credit applicant, along with any information obtained from the credit bureau, the store or bank must decide whether to grant credit. Very likely, some type of credit scoring scheme will be used to make the decision. An over all credit score is developed for you by assigning values to such factors as:

You are considering investing in a zero-coupon bond that sells for $250. At maturity in 16 years it will be redeemed for $1,000. What approximate annual rate of growth does this represent?

In 3 years you are to receive $5,000. If the interest rate were to suddenly increase, the present value of that future amount to you would: