Question 1

The personal cost of identity theft is difficult to measure, but calculating the financial cost is an easier task.

Accepted Answer

A) True 
 B)False

Question 2

Credit extended to consumers for short periods of time to make specific purchases is

Accepted Answer

A)  installment credit. 
B)  non-installment credit. 
C)  revolving open-end credit. 
D)  minimum limit credit. 
A)  installment credit. 
B)  non-installment credit. 
C)  revolving open-end credit. 
D)  minimum limit credit.

Question 3

The ability to save funds is ________ when credit payments are ________.

Accepted Answer

A)  increased; small 
B)  reduced; small 
C)  reduced; large 
D)  Both A and C are correct. 
A)  increased; small 
B)  reduced; small 
C)  reduced; large 
D)  Both A and C are correct.

Question 4

Federal law requires creditors to explain the reasons for the denial of credit.

Accepted Answer

A) True 
 B)False

Question 5

All of the following situations are valid reasons to borrow funds, except

Accepted Answer

A)  a medical emergency. 
B)  a college education. 
C)  purchasing a car in order to return to the workforce. 
D)  borrowing for everyday living expenses. 
A)  a medical emergency. 
B)  a college education. 
C)  purchasing a car in order to return to the workforce. 
D)  borrowing for everyday living expenses.

Question 6

You can begin to build a credit history by using utility services.

Accepted Answer

A) True 
 B)False

Question 7

The minimum credit score required by financial institutions

Accepted Answer

A)  varies by institution. 
B)  is 500. 
C)  is 550. 
D)  is 600. 
A)  varies by institution. 
B)  is 500. 
C)  is 550. 
D)  is 600.

Question 8

Use the following two columns of items to answer the matching questions below:
-dumpster diving
A)something you should install on your computer to protect you from hackers and worms
B)the federal agency that acts as a clearinghouse for all identity theft complaints
C)obtaining information on a person's identity from discarded items
D)something you should never carry in your wallet
E)copying credit information from the magnetic strip on a credit card

Accepted Answer

The answer of Use the following two columns of items...

Question 9

Making sure that you have an adequate credit standing should be an important part of your overall financial plan.

Accepted Answer

A) True 
 B)False

Question 10

According to the FTC, the average number of hours a person spends dealing with the problems due to identity theft is

Accepted Answer

A)  500. 
B)  200. 
C)  100. 
D)  unknown, because the government handles the problems. 
A)  500. 
B)  200. 
C)  100. 
D)  unknown, because the government handles the problems.

Question 11

Which of the following items should not be removed from your wallet?

Accepted Answer

A)  Social Security card 
B)  Birth certificate 
C)  Infrequently used credit cards 
D)  Driver's license 
A)  Social Security card 
B)  Birth certificate 
C)  Infrequently used credit cards 
D)  Driver's license

Question 12

Generally, the ________ the credit history, the ________ the credit limit.

Accepted Answer

A)  better; lower 
B)  worse; higher 
C)  better; higher 
D)  None of the above 
A)  better; lower 
B)  worse; higher 
C)  better; higher 
D)  None of the above

Question 13

Paying your phone bill and electric bill on time each month will help you to establish a(n) ________.

Accepted Answer

The answer of Paying your phone bill and electric bill...

Question 14

Revolving open-end credit typically does not specify a maximum amount that can be borrowed.

Accepted Answer

A) True 
 B)False

Question 15

Going through documents discarded by your bank to obtain information in order to access your bank account is an example of

Accepted Answer

A)  shoulder surfing. 
B)  dumpster diving. 
C)  pretexting. 
D)  skimming. 
A)  shoulder surfing. 
B)  dumpster diving. 
C)  pretexting. 
D)  skimming.

Question 16

A(n) ________ extends credit by providing a service and billing for the service at the end of the time period.

Accepted Answer

The answer of A(n) ________ extends credit by providing a...

Question 17

Obtaining an annual credit report is free but obtaining your credit scores requires payment to the credit bureaus.

Accepted Answer

A) True 
 B)False

Question 18

________ is a borrowing arrangement in which regular monthly payments of principal and interest must be made.

Accepted Answer

The answer of ________ is a borrowing arrangement in which...

Question 19

Using e-mail messages that pretend to be from a legitimate source to obtain account information for the purpose of identity theft is referred to as

Accepted Answer

A)  pharming. 
B)  phishing. 
C)  skimming. 
D)  trolling. 
A)  pharming. 
B)  phishing. 
C)  skimming. 
D)  trolling.

Question 20

Of the following statements, which is not an advantage of using credit?

Accepted Answer

A)  Using credit wisely creates stability and allows you to establish a favorable credit history. 
B)  Buying today and paying tomorrow seems ideal, but continual spending can lead to financial problems. 
C)  Using credit is safe since using charge accounts and credit cards when you shop and travel is safer than carrying large amounts of cash. 
D)  Credit cards permit the purchase of goods even when cash funds are low. 
A)  Using credit wisely creates stability and allows you to establish a favorable credit history. 
B)  Buying today and paying tomorrow seems ideal, but continual spending can lead to financial problems. 
C)  Using credit is safe since using charge accounts and credit cards when you shop and travel is safer than carrying large amounts of cash. 
D)  Credit cards permit the purchase of goods even when cash funds are low.

The personal cost of identity theft is difficult to measure, but calculating the financial cost is an easier task.

Credit extended to consumers for short periods of time to make specific purchases is

The ability to save funds is when credit payments are .

Federal law requires creditors to explain the reasons for the denial of credit.

All of the following situations are valid reasons to borrow funds, except

You can begin to build a credit history by using utility services.

The minimum credit score required by financial institutions

Making sure that you have an adequate credit standing should be an important part of your overall financial plan.

According to the FTC, the average number of hours a person spends dealing with the problems due to identity theft is

Which of the following items should not be removed from your wallet?

Generally, the the credit history, the the credit limit.

Paying your phone bill and electric bill on time each month will help you to establish a(n) ________.

Revolving open-end credit typically does not specify a maximum amount that can be borrowed.

Going through documents discarded by your bank to obtain information in order to access your bank account is an example of

A(n) ________ extends credit by providing a service and billing for the service at the end of the time period.

Obtaining an annual credit report is free but obtaining your credit scores requires payment to the credit bureaus.

________ is a borrowing arrangement in which regular monthly payments of principal and interest must be made.

Using e-mail messages that pretend to be from a legitimate source to obtain account information for the purpose of identity theft is referred to as

Of the following statements, which is not an advantage of using credit?

Overview of a Financial Plan

Planning With Personal Financial Statements

Applying Time Value Concepts

Using Tax Concepts for Planning

Banking and Interest Rates

Managing Your Money

Managing Your Credit

Personal Loans

Purchasing and Financing a Home

Auto and Homeowners Insurance

Health and Disability Insurance

Life Insurance

Investing Fundamentals

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Asset Allocation

Retirement Planning

Estate Planning

Integrating the Components of a Financial Plan

Filters

Exam 7: Assessing and Securing Your Credit

The personal cost of identity theft is difficult to measure, but calculating the financial cost is an easier task.

Credit extended to consumers for short periods of time to make specific purchases is

The ability to save funds is ________ when credit payments are ________.

Federal law requires creditors to explain the reasons for the denial of credit.

All of the following situations are valid reasons to borrow funds, except

You can begin to build a credit history by using utility services.

The minimum credit score required by financial institutions

Making sure that you have an adequate credit standing should be an important part of your overall financial plan.

According to the FTC, the average number of hours a person spends dealing with the problems due to identity theft is

Which of the following items should not be removed from your wallet?

Generally, the ________ the credit history, the ________ the credit limit.

Paying your phone bill and electric bill on time each month will help you to establish a(n) ________.

Revolving open-end credit typically does not specify a maximum amount that can be borrowed.

Going through documents discarded by your bank to obtain information in order to access your bank account is an example of

A(n) ________ extends credit by providing a service and billing for the service at the end of the time period.

Obtaining an annual credit report is free but obtaining your credit scores requires payment to the credit bureaus.

________ is a borrowing arrangement in which regular monthly payments of principal and interest must be made.

Using e-mail messages that pretend to be from a legitimate source to obtain account information for the purpose of identity theft is referred to as

Of the following statements, which is not an advantage of using credit?

Overview of a Financial Plan

Planning With Personal Financial Statements

Applying Time Value Concepts

Using Tax Concepts for Planning

Banking and Interest Rates

Managing Your Money

Managing Your Credit

Personal Loans

Purchasing and Financing a Home

Auto and Homeowners Insurance

Health and Disability Insurance

Life Insurance

Investing Fundamentals

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Asset Allocation

Retirement Planning

Estate Planning

Integrating the Components of a Financial Plan

Filters

The ability to save funds is when credit payments are .

Generally, the the credit history, the the credit limit.