What This Document Is
This document is a study guide for the second midterm exam in FIN 310: Personal Financial Management at California State University, Fullerton. It covers key concepts related to consumer credit, credit evaluation, and the legal framework surrounding lending practices. It’s designed to help students review and prepare for an assessment of their understanding of these topics.
Why This Document Matters
This study guide is essential for students enrolled in FIN 310 who are preparing for their second midterm. Mastering these concepts is crucial for understanding personal finance principles and making informed decisions about borrowing and managing credit. It’s most useful during the exam preparation phase, serving as a focused review of the material covered in Chapters 6 and 7.
Common Limitations or Challenges
This study guide provides a review of core concepts but does *not* replace the need to attend lectures, complete readings, or engage with course materials. It’s a condensed overview and won’t cover every nuance of the topics. It also doesn’t include practice problems or detailed explanations of complex calculations – it’s a preview of what’s been covered, not a complete course in itself.
What This Document Provides
This study guide includes information on:
* Key credit terms like APR, grace periods, open credit, and revolving credit.
* Methods for calculating interest charges (average daily balance, previous balance, adjusted balance).
* The costs associated with credit card use (annual fees, late fees, penalty rates, merchant discount fees).
* The credit evaluation process, including the factors lenders consider (character, capacity, capital, collateral, conditions).
* The components of a credit score and credit report.
* An overview of the Truth in Lending Act and its amendments.
* Basic information on consumer loans and installment loans.
This preview *does not* include detailed examples, practice questions, or in-depth explanations of the formulas mentioned. It also does not cover the full scope of Chapters 6 and 7, serving as a high-level overview to help you determine if the full document will be a valuable study resource.
