Question 1

What should you do if your identity is stolen?

Accepted Answer

A) File a police report. 
B) Ignore the problem and hope that it will go away. 
C) Close all of your accounts and do not say anything to anyone. 
D) Pay all the charges for which you are billed,even if they are not yours,so you can keep your credit accounts. 
E) Complain to your friends. 
A) File a police report. 
B) Ignore the problem and hope that it will go away. 
C) Close all of your accounts and do not say anything to anyone. 
D) Pay all the charges for which you are billed,even if they are not yours,so you can keep your credit accounts. 
E) Complain to your friends.

Question 2

Which federal consumer credit law prohibits credit card issuers from sending unrequested cards?

Accepted Answer

A) Truth in Lending Act 
B) Fair Credit Reporting Act 
C) Fair Credit Billing Act 
D) Equal Credit Opportunity Act 
E) Fair Debt Collection Practices Act 
A) Truth in Lending Act 
B) Fair Credit Reporting Act 
C) Fair Credit Billing Act 
D) Equal Credit Opportunity Act 
E) Fair Debt Collection Practices Act

Question 3

Stored-value cards:

Accepted Answer

A) look nothing like typical debit cards. 
B) have decreased in popularity over the past decade. 
C) work the same as a credit card. 
D) can lose their value if a retailer goes bankrupt. 
E) are currently being used for very limited purposes. 
A) look nothing like typical debit cards. 
B) have decreased in popularity over the past decade. 
C) work the same as a credit card. 
D) can lose their value if a retailer goes bankrupt. 
E) are currently being used for very limited purposes.

Question 4

If you want to improve your credit score,then you should:

Accepted Answer

A) get copies of your credit report. 
B) pay your bills on time. 
C) make sure you understand how your credit score is determined. 
D) beware of credit-repair scams. 
E) do all of these things. 
A) get copies of your credit report. 
B) pay your bills on time. 
C) make sure you understand how your credit score is determined. 
D) beware of credit-repair scams. 
E) do all of these things.

Question 5

What are the two general rules of measuring credit capacity?

Accepted Answer

The two general rules of measuring credi

Question 6

If you have a complaint about consumer credit,you should first:

Accepted Answer

A) try to solve your problem directly with the creditor. 
B) contact your attorney. 
C) file a complaint with the Better Business Bureau. 
D) report it to the state consumer protection agency. 
E) complain to the Federal Reserve Bank in your district. 
A) try to solve your problem directly with the creditor. 
B) contact your attorney. 
C) file a complaint with the Better Business Bureau. 
D) report it to the state consumer protection agency. 
E) complain to the Federal Reserve Bank in your district.

Question 7

To protect yourself against credit card fraud,you should shred anything with your account number on it before throwing it away.

Accepted Answer

A) True 
 B)False

Question 8

Elizabeth has a monthly net income of $1,400.She has a house payment of $600 per month,a car loan with payments of $300 per month,a Visa card with payments of $60 per month,and a credit card with a local department store with payments of $32 per month.What is Elizabeth's debt payment-to-income ratio? Is she within range of what experts suggest you spend on consumer credit payments?

Accepted Answer

Elizabeth's net monthly income = $1,400

Question 9

Your credit card company must send you a notice ________ days before they can increase your interest rate.

Accepted Answer

A) 30 
B) 45 
C) 50 
D) 60 
E) 90 
A) 30 
B) 45 
C) 50 
D) 60 
E) 90

Question 10

Today,Michael purchased a laptop computer from a retail outlet.He has agreed to pay for this purchase in full 30 days from today.This is an example of:

Accepted Answer

A) open-end credit. 
B) mortgage loan. 
C) single lump-sum credit. 
D) installment cash credit. 
E) revolving check credit. 
A) open-end credit. 
B) mortgage loan. 
C) single lump-sum credit. 
D) installment cash credit. 
E) revolving check credit.

Question 11

Which of the following contains new protections for college students and young adults?

Accepted Answer

A) Fair Credit Reporting Act 
B) Credit Card Accountability,Responsibility,and Disclosure Act 
C) Truth in Lending Act 
D) Equal Credit Opportunity Act 
E) Fair Credit Billing Act 
A) Fair Credit Reporting Act 
B) Credit Card Accountability,Responsibility,and Disclosure Act 
C) Truth in Lending Act 
D) Equal Credit Opportunity Act 
E) Fair Credit Billing Act

Question 12

The debt payments-to-income ratio is:

Accepted Answer

A) calculated by dividing total liabilities by net worth. 
B) calculated by dividing monthly debt payments (excluding mortgage payments)by net monthly income. 
C) determined by dividing your assets by your liabilities. 
D) a useless ratio for determining your credit capacity. 
E) rarely used by creditors in determining credit worthiness. 
A) calculated by dividing total liabilities by net worth. 
B) calculated by dividing monthly debt payments (excluding mortgage payments)by net monthly income. 
C) determined by dividing your assets by your liabilities. 
D) a useless ratio for determining your credit capacity. 
E) rarely used by creditors in determining credit worthiness.

Question 13

Which of the following is not a valid reason for using credit?

Accepted Answer

A) To pay for a medical emergency 
B) To purchase a car for a homemaker returning to the workforce 
C) To purchase an item now for less money than it will cost later 
D) To pay for everyday living expenses 
E) To pay for a college education 
A) To pay for a medical emergency 
B) To purchase a car for a homemaker returning to the workforce 
C) To purchase an item now for less money than it will cost later 
D) To pay for everyday living expenses 
E) To pay for a college education

Question 14

An unauthorized person who obtains a credit report under false pretenses may be:

Accepted Answer

A) sued by the lender. 
B) sued by the borrower. 
C) jailed for 5 years. 
D) subject to a fine and imprisonment. 
E) placed on a probation. 
A) sued by the lender. 
B) sued by the borrower. 
C) jailed for 5 years. 
D) subject to a fine and imprisonment. 
E) placed on a probation.

Question 15

If you cosign a loan:

Accepted Answer

A) you are only responsible for half of the debt obligation. 
B) you will be asked,but not required,to pay the loan in full if the borrower fails to pay. 
C) you will be required to pay the loan in full if the borrower does not pay. 
D) the creditor must first try to collect from the borrower. 
E) the creditor is prohibited from garnishing your wages if you refuse to pay the loan in full. 
A) you are only responsible for half of the debt obligation. 
B) you will be asked,but not required,to pay the loan in full if the borrower fails to pay. 
C) you will be required to pay the loan in full if the borrower does not pay. 
D) the creditor must first try to collect from the borrower. 
E) the creditor is prohibited from garnishing your wages if you refuse to pay the loan in full.

Question 16

Credit bureaus obtain their data from banks,finance companies,merchants,credit card companies,other creditors,and court records.

Accepted Answer

A) True 
 B)False

Question 17

Credit,when effectively used,can help you have more and enjoy more.

Accepted Answer

A) True 
 B)False

Question 18

An example of open-end credit is:

Accepted Answer

A) the use of a bank credit card to make a purchase. 
B) a mortgage loan from a savings and loan institution. 
C) an automobile loan from a credit union. 
D) an installment loan from a furniture store. 
E) an installment loan for purchasing a major appliance. 
A) the use of a bank credit card to make a purchase. 
B) a mortgage loan from a savings and loan institution. 
C) an automobile loan from a credit union. 
D) an installment loan from a furniture store. 
E) an installment loan for purchasing a major appliance.

Question 19

If you have a problem with your credit account,the best solution is to:

Accepted Answer

A) file a lawsuit against the creditor. 
B) first call your creditor. 
C) complain to the Federal Reserve System. 
D) complain to the Board of Governors. 
E) wait for creditor action. 
A) file a lawsuit against the creditor. 
B) first call your creditor. 
C) complain to the Federal Reserve System. 
D) complain to the Board of Governors. 
E) wait for creditor action.

Question 20

What are the three alternatives in financing current purchases for most consumers? Describe the trade-offs of each alternative.

Accepted Answer

Answers will vary.Most consumers have th

What should you do if your identity is stolen?

Which federal consumer credit law prohibits credit card issuers from sending unrequested cards?

Stored-value cards:

If you want to improve your credit score,then you should:

What are the two general rules of measuring credit capacity?

If you have a complaint about consumer credit,you should first:

To protect yourself against credit card fraud,you should shred anything with your account number on it before throwing it away.

Your credit card company must send you a notice ________ days before they can increase your interest rate.

Today,Michael purchased a laptop computer from a retail outlet.He has agreed to pay for this purchase in full 30 days from today.This is an example of:

Which of the following contains new protections for college students and young adults?

The debt payments-to-income ratio is:

Which of the following is not a valid reason for using credit?

An unauthorized person who obtains a credit report under false pretenses may be:

If you cosign a loan:

Credit bureaus obtain their data from banks,finance companies,merchants,credit card companies,other creditors,and court records.

Credit,when effectively used,can help you have more and enjoy more.

An example of open-end credit is:

If you have a problem with your credit account,the best solution is to:

What are the three alternatives in financing current purchases for most consumers? Describe the trade-offs of each alternative.

Personal Finance Basics and the Time Value of Money

Financial Aspects of Career Planning

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

Financial Services: Savings Plans and Payment Accounts

Choosing a Source of Credit: the Costs of Credit Alternatives

Consumer Purchasing Strategies and Legal Protection

The Housing Decision: Factors and Finances

Property and Motor Vehicle Insurance

Health,disability,and Long-Term Care Insurance

Life Insurance

Investing Fundamentals

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Investing in Real Estate and Other Investment Alternatives

Starting Early: Retirement Planning

Estate Planning

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Exam 6: Introduction to Consumer Credit

What should you do if your identity is stolen?

Which federal consumer credit law prohibits credit card issuers from sending unrequested cards?

Stored-value cards:

If you want to improve your credit score,then you should:

What are the two general rules of measuring credit capacity?

If you have a complaint about consumer credit,you should first:

To protect yourself against credit card fraud,you should shred anything with your account number on it before throwing it away.

Your credit card company must send you a notice ________ days before they can increase your interest rate.

Today,Michael purchased a laptop computer from a retail outlet.He has agreed to pay for this purchase in full 30 days from today.This is an example of:

Which of the following contains new protections for college students and young adults?

The debt payments-to-income ratio is:

Which of the following is not a valid reason for using credit?

An unauthorized person who obtains a credit report under false pretenses may be:

If you cosign a loan:

Credit bureaus obtain their data from banks,finance companies,merchants,credit card companies,other creditors,and court records.

Credit,when effectively used,can help you have more and enjoy more.

An example of open-end credit is:

If you have a problem with your credit account,the best solution is to:

What are the three alternatives in financing current purchases for most consumers? Describe the trade-offs of each alternative.

Personal Finance Basics and the Time Value of Money

Financial Aspects of Career Planning

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

Financial Services: Savings Plans and Payment Accounts

Choosing a Source of Credit: the Costs of Credit Alternatives

Consumer Purchasing Strategies and Legal Protection

The Housing Decision: Factors and Finances

Property and Motor Vehicle Insurance

Health,disability,and Long-Term Care Insurance

Life Insurance

Investing Fundamentals

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Investing in Real Estate and Other Investment Alternatives

Starting Early: Retirement Planning

Estate Planning

Filters