Exam 7: Credit Cards and Consumer Loans

Miako has just applied for a credit card that offers a 1.9 percent interest rate for 12 months.At the end of 12 months,the interest rate will be "prime plus 9 percent." Which of the following characteristics does this card have?

(Multiple Choice)

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Question 101

Which of the following pieces of information does not have to be disclosed in credit card ads and applications?

(Multiple Choice)

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Question 102

A credit card holder is not responsible for any fraudulent usage that occurs after he or she notifies the issuer of the loss.

(True/False)

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Question 103

You might find yourself obligated to pay an entire debt in full if you miss several payments because of the ____ clause found in most installment loan contracts.

(Multiple Choice)

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Question 104

Which type of credit card allows the holder to make purchases almost anywhere?

(Multiple Choice)

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Question 105

The sum of outstanding balances owed each day during the billing period divided by the number of days in the period is the

(Multiple Choice)

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Question 106

Using the rule of 78s,a borrower who repaid a 12-month loan after only 5 months would save ____ of his or her interest.

(Multiple Choice)

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Question 107

Introductory rates are also known as teaser rates.

(True/False)

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Question 108

The Fair Credit Billing Act limits a cardholder's credit card liability for lost or stolen credit cards.

(True/False)

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Question 109

Installment purchase agreements are also called

(Multiple Choice)

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Question 110

A fixed interest rate means that the rate will not change over the life of the loan.

(True/False)

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Question 111

If finance charges are not assessed on new credit card transactions during the period between the posting date and the due date,this period is called the ____ period.

(Multiple Choice)

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Question 112

For an open-end credit account,a credit limit is set by the lender and represents the maximum outstanding debt allowed on the account.

(True/False)

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Question 113

The due date is the last day of the month for which any transactions are reported on the statement.

(True/False)

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Question 114

A penalty APR is a high interest rate that is assessed whenever a borrower fails to uphold certain rules of the account.

(True/False)

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Question 115

The entire balance charged on travel and entertainment cards must be repaid within 30 days.

(True/False)

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Question 116

Credit life insurance is generally a good buy for the borrower.

(True/False)

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Question 117

The borrower will not receive the full amount of a loan when the ____ method is used to calculate interest.

(Multiple Choice)

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Question 118

The date on which a credit cardholder makes a purchase or receives a credit is known as the transaction date.

(True/False)

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Question 119

Consumer installment loans typically are made with a fixed interest rate.

(True/False)

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Question 120

Showing 101 - 120 of 166

Miako has just applied for a credit card that offers a 1.9 percent interest rate for 12 months.At the end of 12 months,the interest rate will be "prime plus 9 percent." Which of the following characteristics does this card have?

Which of the following pieces of information does not have to be disclosed in credit card ads and applications?

A credit card holder is not responsible for any fraudulent usage that occurs after he or she notifies the issuer of the loss.

You might find yourself obligated to pay an entire debt in full if you miss several payments because of the ____ clause found in most installment loan contracts.

Which type of credit card allows the holder to make purchases almost anywhere?

The sum of outstanding balances owed each day during the billing period divided by the number of days in the period is the

Using the rule of 78s,a borrower who repaid a 12-month loan after only 5 months would save ____ of his or her interest.

Introductory rates are also known as teaser rates.

The Fair Credit Billing Act limits a cardholder's credit card liability for lost or stolen credit cards.

Installment purchase agreements are also called

A fixed interest rate means that the rate will not change over the life of the loan.

If finance charges are not assessed on new credit card transactions during the period between the posting date and the due date,this period is called the ____ period.

For an open-end credit account,a credit limit is set by the lender and represents the maximum outstanding debt allowed on the account.

The due date is the last day of the month for which any transactions are reported on the statement.

A penalty APR is a high interest rate that is assessed whenever a borrower fails to uphold certain rules of the account.

The entire balance charged on travel and entertainment cards must be repaid within 30 days.

Credit life insurance is generally a good buy for the borrower.

The borrower will not receive the full amount of a loan when the ____ method is used to calculate interest.

The date on which a credit cardholder makes a purchase or receives a credit is known as the transaction date.

Consumer installment loans typically are made with a fixed interest rate.

Understanding Personal Finance

Career Planning

Financial Statements,tools,and Budgets

Managing Income Taxes

Managing Checking and Savings Accounts

Building and Maintaining Good Credit

Vehicles and Other Major Purchases

Obtaining Affordable Housing

Managing Property and Liability Risk

Managing Health Expenses

Life Insurance Planning

Investment Fundamentals

Investing in Stocks and Bonds

Mutual Funds and Exchange Traded Funds

Real Estate and High-Risk Investments

Retirement and Estate Planning

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