Question 1

Raynelle,an active environmentalist,has a MasterCard with the Sierra Club logo on it.What type of card is this?

Accepted Answer

A) Premium card 
B) Gold card 
C) Affinity card 
D) Both a premium card and a gold card 
A) Premium card 
B) Gold card 
C) Affinity card 
D) Both a premium card and a gold card

Question 2

The Fair Credit Billing Act permit a chargeback when there is a goods and service dispute over a purchase made with a credit card that cannot be resolved with the merchant.

Accepted Answer

A) True 
 B)False

Question 3

Collateral is pledged as security for repayment of a loan.

Accepted Answer

A) True 
 B)False

Question 4

Under the Fair Credit Billing Act,you must make billing error complaints ____ to protect your legal rights.

Accepted Answer

A) in person 
B) within 60 days after the first bill containing the error was mailed to you 
C) over the telephone 
D) both over the telephone and within 60 days after the first bill containing the error was mailed to you 
A) in person 
B) within 60 days after the first bill containing the error was mailed to you 
C) over the telephone 
D) both over the telephone and within 60 days after the first bill containing the error was mailed to you

Question 5

A secured credit card is backed by collateral in the form of a savings account opened at the financial institution that issues the card,and this savings balance can be withdrawn at any time.

Accepted Answer

A) True 
 B)False

Question 6

An unsecured loan requires

Accepted Answer

A) a cosigner and collateral. 
B) collateral and a lien. 
C) a cosigner and a lien. 
D) none of these. 
A) a cosigner and collateral. 
B) collateral and a lien. 
C) a cosigner and a lien. 
D) none of these.

Question 7

If you make the minimum payment on a credit card account,it will take six years or more to pay off the balance even if the card is never used again.

Accepted Answer

A) True 
 B)False

Question 8

With a(n) ____,a customer asks to have a purchase put on his or her account for repayment at a later date without using a credit card.

Accepted Answer

A) line of credit 
B) retail charge account 
C) service credit account 
D) affinity account 
A) line of credit 
B) retail charge account 
C) service credit account 
D) affinity account

Question 9

Making a payment on one credit card with a cash advance from another is called a balance transfer.

Accepted Answer

A) True 
 B)False

Question 10

When the discount method is used,the borrower actually receives less money than the amount of the loan.

Accepted Answer

A) True 
 B)False

Question 11

The declining-balance method of calculating interest results in amortization of the amount owed.

Accepted Answer

A) True 
 B)False

Question 12

A method not recommended for getting out of excessive credit card debt is to

Accepted Answer

A) negotiate with your creditors to lower your payments and interest rates. 
B) consider transferring existing balances on high-interest rate accounts to an account with a lower interest rate. 
C) pay the minimum amount due on your high interest-rate cards, and pay as much as possible on the lowest interest-rate cards. 
D) not open new credit accounts or accept any new credit offers. 
A) negotiate with your creditors to lower your payments and interest rates. 
B) consider transferring existing balances on high-interest rate accounts to an account with a lower interest rate. 
C) pay the minimum amount due on your high interest-rate cards, and pay as much as possible on the lowest interest-rate cards. 
D) not open new credit accounts or accept any new credit offers.

Question 13

The grace period is the time period between the posting date of a transaction and the billing date.

Accepted Answer

A) True 
 B)False

Question 14

Federal law states that credit card bills must be mailed to cardholders at least 10 days before payments are due.

Accepted Answer

A) True 
 B)False

Question 15

The Truth in Lending Act limits a cardholder's credit card liability for lost or stolen credit cards.

Accepted Answer

A) True 
 B)False

Question 16

With a conditional sales contract,the title passes to the buyer when the document is signed.

Accepted Answer

A) True 
 B)False

Question 17

Credit card bills only need to inform consumers of the method used to compute the finance charges.

Accepted Answer

A) True 
 B)False

Question 18

Before applying for a preapproved credit card,you have already

Accepted Answer

A) been granted credit. 
B) had a credit card credit limit set. 
C) had the APR determined. 
D) All of these. 
A) been granted credit. 
B) had a credit card credit limit set. 
C) had the APR determined. 
D) All of these.

Question 19

Installment purchase agreements are loans in which the title does not pass to the buyer until the last installment payment has been paid.

Accepted Answer

A) True 
 B)False

Question 20

Service credit normally carries no interest.

Accepted Answer

A) True 
 B)False

Raynelle,an active environmentalist,has a MasterCard with the Sierra Club logo on it.What type of card is this?

The Fair Credit Billing Act permit a chargeback when there is a goods and service dispute over a purchase made with a credit card that cannot be resolved with the merchant.

Collateral is pledged as security for repayment of a loan.

Under the Fair Credit Billing Act,you must make billing error complaints ____ to protect your legal rights.

A secured credit card is backed by collateral in the form of a savings account opened at the financial institution that issues the card,and this savings balance can be withdrawn at any time.

An unsecured loan requires

If you make the minimum payment on a credit card account,it will take six years or more to pay off the balance even if the card is never used again.

With a(n) ____,a customer asks to have a purchase put on his or her account for repayment at a later date without using a credit card.

Making a payment on one credit card with a cash advance from another is called a balance transfer.

When the discount method is used,the borrower actually receives less money than the amount of the loan.

The declining-balance method of calculating interest results in amortization of the amount owed.

A method not recommended for getting out of excessive credit card debt is to

The grace period is the time period between the posting date of a transaction and the billing date.

Federal law states that credit card bills must be mailed to cardholders at least 10 days before payments are due.

The Truth in Lending Act limits a cardholder's credit card liability for lost or stolen credit cards.

With a conditional sales contract,the title passes to the buyer when the document is signed.

Credit card bills only need to inform consumers of the method used to compute the finance charges.

Before applying for a preapproved credit card,you have already

Installment purchase agreements are loans in which the title does not pass to the buyer until the last installment payment has been paid.

Service credit normally carries no interest.

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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Exam 7: Credit Cards and Consumer Loans

Raynelle,an active environmentalist,has a MasterCard with the Sierra Club logo on it.What type of card is this?

The Fair Credit Billing Act permit a chargeback when there is a goods and service dispute over a purchase made with a credit card that cannot be resolved with the merchant.

Collateral is pledged as security for repayment of a loan.

Under the Fair Credit Billing Act,you must make billing error complaints ____ to protect your legal rights.

A secured credit card is backed by collateral in the form of a savings account opened at the financial institution that issues the card,and this savings balance can be withdrawn at any time.

An unsecured loan requires

If you make the minimum payment on a credit card account,it will take six years or more to pay off the balance even if the card is never used again.

With a(n) ____,a customer asks to have a purchase put on his or her account for repayment at a later date without using a credit card.

Making a payment on one credit card with a cash advance from another is called a balance transfer.

When the discount method is used,the borrower actually receives less money than the amount of the loan.

The declining-balance method of calculating interest results in amortization of the amount owed.

A method not recommended for getting out of excessive credit card debt is to

The grace period is the time period between the posting date of a transaction and the billing date.

Federal law states that credit card bills must be mailed to cardholders at least 10 days before payments are due.

The Truth in Lending Act limits a cardholder's credit card liability for lost or stolen credit cards.

With a conditional sales contract,the title passes to the buyer when the document is signed.

Credit card bills only need to inform consumers of the method used to compute the finance charges.

Before applying for a preapproved credit card,you have already

Installment purchase agreements are loans in which the title does not pass to the buyer until the last installment payment has been paid.

Service credit normally carries no interest.

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

Filters