Question 1

Having arranged and fully repaid a small loan should help improve creditworthiness.

Accepted Answer

A) True 
 B)False

Question 2

A debt safety ratio of 5% would generally be a signal of financial trouble ahead.

Accepted Answer

A) True 
 B)False

Question 3

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-The first step to take in establishing a credit history is to [get a credit card | open checking and savings accounts].

Accepted Answer

The answer of Choose the word or phrase in [...

Question 4

Having a checking account tells a creditor that you have some experience in managing your own funds.

Accepted Answer

A) True 
 B)False

Question 5

Using credit is the ideal way to provide for financial emergencies.

Accepted Answer

A) True 
 B)False

Question 6

The majority of reduction in consumer indebtedness is due to home and consumer loan defaults.

Accepted Answer

A) True 
 B)False

Question 7

The market value of your house is $175,000 and you have a first mortgage balance of $100,000.If a lender requires a 80% loan-to-market value ratio,how large could your home equity loan be?

Accepted Answer

($175,000

Question 8

It is not a good idea to use credit for

Accepted Answer

A)  convenience. 
B)  durable expenses. 
C)  consumable items. 
D)  investments. 
E)  improving one's credit rating. 
A)  convenience. 
B)  durable expenses. 
C)  consumable items. 
D)  investments. 
E)  improving one's credit rating.

Question 9

Debit cards look like credit cards,but they work like checks.

Accepted Answer

A) True 
 B)False

Question 10

Student credit cards are structured much differently than regular credit cards.

Accepted Answer

A) True 
 B)False

Question 11

The required monthly payment on an open account will be the smaller of a minimum dollar amount or a specified percentage of the balance.

Accepted Answer

A) True 
 B)False

Question 12

One can lose his home if he does not repay his home equity line of credit.

Accepted Answer

A) True 
 B)False

Question 13

Borderline credit risks would most likely receive

Accepted Answer

A)  delayed reconsideration for credit application. 
B)  a limited line of credit. 
C)  a negative credit rating. 
D)  credit only as applied for. 
E)  credit only in emergency situations. 
A)  delayed reconsideration for credit application. 
B)  a limited line of credit. 
C)  a negative credit rating. 
D)  credit only as applied for. 
E)  credit only in emergency situations.

Question 14

The more credit cards one has,the better one's credit score.

Accepted Answer

A) True 
 B)False

Question 15

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-A major difference between bank credit cards and travel and entertainment credit cards is [the travel and entertainment | the bank] cards expect balances to be paid in full each month.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 16

A monthly credit card statement need not include information about the

Accepted Answer

A)  size of the payment. 
B)  payment due date. 
C)  type of the goods purchased. 
D)  annual percentage rate. 
E)  finance charge if any. 
A)  size of the payment. 
B)  payment due date. 
C)  type of the goods purchased. 
D)  annual percentage rate. 
E)  finance charge if any.

Question 17

Bank credit card purchases always begin accruing interest charges immediately.

Accepted Answer

A) True 
 B)False

Question 18

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-The "preferred" way of stealing from consumers now is [through your credit card | stealing your car].

Accepted Answer

The answer of Choose the word or phrase in [...

Question 19

Finance charges on two credit cards with the same stated APR

Accepted Answer

A)  will always be the same. 
B)  by federal law must be calculated the same way. 
C)  will be determined by the type of credit card used. 
D)  will be determined by the method used to calculate balances. 
E)  none of these. 
A)  will always be the same. 
B)  by federal law must be calculated the same way. 
C)  will be determined by the type of credit card used. 
D)  will be determined by the method used to calculate balances. 
E)  none of these.

Question 20

Credit scoring systems are often used by lenders to determine your creditworthiness.

Accepted Answer

A) True 
 B)False

Having arranged and fully repaid a small loan should help improve creditworthiness.

A debt safety ratio of 5% would generally be a signal of financial trouble ahead.

Having a checking account tells a creditor that you have some experience in managing your own funds.

Using credit is the ideal way to provide for financial emergencies.

The majority of reduction in consumer indebtedness is due to home and consumer loan defaults.

The market value of your house is $175,000 and you have a first mortgage balance of $100,000.If a lender requires a 80% loan-to-market value ratio,how large could your home equity loan be?

It is not a good idea to use credit for

Debit cards look like credit cards,but they work like checks.

Student credit cards are structured much differently than regular credit cards.

The required monthly payment on an open account will be the smaller of a minimum dollar amount or a specified percentage of the balance.

One can lose his home if he does not repay his home equity line of credit.

Borderline credit risks would most likely receive

The more credit cards one has,the better one's credit score.

A monthly credit card statement need not include information about the

Bank credit card purchases always begin accruing interest charges immediately.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -The "preferred" way of stealing from consumers now is [through your credit card | stealing your car].

Finance charges on two credit cards with the same stated APR

Credit scoring systems are often used by lenders to determine your creditworthiness.

Understanding the Financial Planning Process

Using Financial Statements and Budgets

Preparing Your Taxes

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds

Planning for Retirement

Preserving Your Estate

Filters

Exam 6: Using Credit

Having arranged and fully repaid a small loan should help improve creditworthiness.

A debt safety ratio of 5% would generally be a signal of financial trouble ahead.

Having a checking account tells a creditor that you have some experience in managing your own funds.

Using credit is the ideal way to provide for financial emergencies.

The majority of reduction in consumer indebtedness is due to home and consumer loan defaults.

The market value of your house is $175,000 and you have a first mortgage balance of $100,000.If a lender requires a 80% loan-to-market value ratio,how large could your home equity loan be?

It is not a good idea to use credit for

Debit cards look like credit cards,but they work like checks.

Student credit cards are structured much differently than regular credit cards.

The required monthly payment on an open account will be the smaller of a minimum dollar amount or a specified percentage of the balance.

One can lose his home if he does not repay his home equity line of credit.

Borderline credit risks would most likely receive

The more credit cards one has,the better one's credit score.

A monthly credit card statement need not include information about the

Bank credit card purchases always begin accruing interest charges immediately.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -The "preferred" way of stealing from consumers now is [through your credit card | stealing your car].

Finance charges on two credit cards with the same stated APR

Credit scoring systems are often used by lenders to determine your creditworthiness.

Understanding the Financial Planning Process

Using Financial Statements and Budgets

Preparing Your Taxes

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds

Planning for Retirement

Preserving Your Estate

Filters