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1.
How does an automatic savings program work?
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Money is withdrawn on a regular basis from an existing account and transferred to another account. The process is automatic, which makes it relatively easy for you.
2.
A home equity line of credit is typically a revolving line of credit.
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True. HELOCs, as they are called, can be used to finance large purchases.
3.
If you want to save for a big purchase over the long term, which of the following options is likely to fluctuate in value the least?
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Certificates of deposit. As a general rule, certificates of deposit are the least likely of these to fluctuate in value.
4.
Budgeting for a major purchase has many advantages; one of them is that _______.
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You may be able to avoid the use of debt. Avoiding debt can save you a lot of money, as well as give you time to think over the purchase.
5.
Credit cards and home equity lines of credit are similar in that they _______.
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Use revolving credit. They both typically make credit available again as you pay down your balance.