Afcpe Flashcard With Latest Questions And Answers

Unsecured Loan {Ans: loan granted based solely on borrowers good credit worthiness (ex. credit card)}Index of Leading Economic Indicators (LEI) {Ans: a composite index reported monthly by the conference board that collects relevant economic data for business, governments, and individuals use}Lemon Law {Ans: state laws that provide guidelines for arbitrators to use to order a dealers buyback of a "lemon" as defined under the law (lemon example: a car has been in the shop 4-5 times to fix the same problem)}Cash Advance {Ans: the use of a credit card to obtain cash rather than to make a purchase (loan from a credit card account)}Prepayment Penalty {Ans: special charge assessed to the borrower for paying off a loan early}Fixed Expenses {Ans: expenses that recur at fixed intervals (ex. savings, investments, retirement contributions, taxes, insurance, rent, mortgage, loan payments)}