Deck 6: Boomtown and Bust-Town Barry Bluestone and Bennettharrison

Question 1

While the number of credit cards held by young Americans has remained unchanged since 1992, young adult cardholders are much more likely than other cardholders to be in debt.

Answer 1

True

Question 2

The major costs faced by young adults between ages 25 and 34 include which of the following?

A) housing, students loans, and transportation
B) housing, childcare, and health care
C) transportation, housing, and childcare
D) none of the above

Answer 2

B

Question 3

The average credit card debt of Americans aged 25 to 34 years old increased by percent between 1992 and 2001.

A) 38
B) 55
C) 71
D) 80

Answer 3

B

Question 4

Why, according to Draut and Silva, are today's young adults going into debt and going broke?

Question 5

College seniors carry an average of ten credit cards.

Question 6

Describe the financial situation of the majority of today's college seniors.

Question 7

Which recent trends help explain the erosion of economic security among today's young adults?

A) rising unemployment
B) slow real wage growth
C) large increases in college tuition
D) all of the above

Question 8

Explain the debt service-to-income ratio. According to Draut and Silva, does this ratio accurately describe the financial burdens facing young Americans? Explain.

Question 9

Which of the following best describes the debt service-to-income ratio?

A) the percentage of income devoted to debt payments
B) the ratio of all essential living expenses i.e., housing, food, and transportation) to income
C) the average interest charged by credit card companies, plus fees, as a fraction of monthly income
D) the cost of student load debt amortized over lifetime earnings

Question 10

The average credit card debt of Americans aged 25 to 34 years old increased by 71 percent between 1992 and 2001.

Question 11

The percentage of Americans experiencing "debt hardship" has increased since 1992 for all income groups except the highest wage earners.

Question 12

Debt hardship is said to result when debt payments amount to more than percent of income.

A) 10
B) 25
C) 40
D) 50

Question 13

The debt service-to-income ratio includes the cost of housing, such as rent or outstanding mortgage balances.