Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

Credit cards issued by local and national merchants and other major non-bank companies are examples of

Accepted Answer

A) retail credit accounts. 
B) affinity credit cards. 
C) service credit charge accounts. 
D) travel and entertainment cards. 
A) retail credit accounts. 
B) affinity credit cards. 
C) service credit charge accounts. 
D) travel and entertainment cards.

Question 3

The declining-balance method is widely used by credit unions and consumer finance companies to calculate interest.

Accepted Answer

A) True 
 B)False

Question 4

Making the minimum payment on a credit card that you continue to use will bring your balance down over time.

Accepted Answer

A) True 
 B)False

Question 5

An installment purchase agreement provides more protection to the buyer than a conditional sales contract.

Accepted Answer

A) True 
 B)False

Question 6

The credit limit on a credit card restricts the total cumulative amount of charges that can be made by the borrower over the borrower's lifetime.

Accepted Answer

A) True 
 B)False

Question 7

The balance of travel and entertainment (T&E) cards must be paid in 60 days.

Accepted Answer

A) True 
 B)False

Question 8

Revenues for depository institutions that issue bank credit cards are generated from

Accepted Answer

A) annual membership fees. 
B) finance charges. 
C) fees paid by participating merchants. 
D) All of these. 
A) annual membership fees. 
B) finance charges. 
C) fees paid by participating merchants. 
D) All of these.

Question 9

A line of credit is structured much like a

Accepted Answer

A) credit card account. 
B) travel and entertainment card account. 
C) budget account. 
D) service credit. 
A) credit card account. 
B) travel and entertainment card account. 
C) budget account. 
D) service credit.

Question 10

Most homeowner's and renter's insurance policies typically pay for the $50 fee you might have to pay for unauthorized use of a lost or stolen credit card.

Accepted Answer

A) True 
 B)False

Question 11

Affinity cards are prestige bank cards with the logo of a sponsoring organization imprinted on the face of the card.

Accepted Answer

A) True 
 B)False

Question 12

The rule of 78s method,or sum of the digits method,is a widely used method of calculating a prepayment penalty.

Accepted Answer

A) True 
 B)False

Question 13

On an installment loan,the APR will always be higher than the add-on rate applied.

Accepted Answer

A) True 
 B)False

Question 14

All mandatory charges to be paid by the borrower must be included in the finance charge.

Accepted Answer

A) True 
 B)False

Question 15

Another term for a secured credit card is a collateralized credit card.

Accepted Answer

A) True 
 B)False

Question 16

Affinity cards are a source of revenue for the sponsoring organization.

Accepted Answer

A) True 
 B)False

Question 17

The declining-balance method is widely used to calculate interest on installment loans made by

Accepted Answer

A) savings and loan associations. 
B) credit unions. 
C) consumer finance companies. 
D) both savings and loan associations and credit unions. 
A) savings and loan associations. 
B) credit unions. 
C) consumer finance companies. 
D) both savings and loan associations and credit unions.

Question 18

A finance charge is the dollar cost of credit or the cost of borrowing.

Accepted Answer

A) True 
 B)False

Question 19

Visa and MasterCard are the most commonly recognized bank card names as well as the actual lenders.

Accepted Answer

A) True 
 B)False

Question 20

Three methods are employed to calculate interest on single-payment loans: the declining balance method,the discount method,and the add-on interest method.

Accepted Answer

A) True 
 B)False

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

Credit cards issued by local and national merchants and other major non-bank companies are examples of

The declining-balance method is widely used by credit unions and consumer finance companies to calculate interest.

Making the minimum payment on a credit card that you continue to use will bring your balance down over time.

An installment purchase agreement provides more protection to the buyer than a conditional sales contract.

The credit limit on a credit card restricts the total cumulative amount of charges that can be made by the borrower over the borrower's lifetime.

The balance of travel and entertainment (T&E) cards must be paid in 60 days.

Revenues for depository institutions that issue bank credit cards are generated from

A line of credit is structured much like a

Most homeowner's and renter's insurance policies typically pay for the $50 fee you might have to pay for unauthorized use of a lost or stolen credit card.

Affinity cards are prestige bank cards with the logo of a sponsoring organization imprinted on the face of the card.

The rule of 78s method,or sum of the digits method,is a widely used method of calculating a prepayment penalty.

On an installment loan,the APR will always be higher than the add-on rate applied.

All mandatory charges to be paid by the borrower must be included in the finance charge.

Another term for a secured credit card is a collateralized credit card.

Affinity cards are a source of revenue for the sponsoring organization.

The declining-balance method is widely used to calculate interest on installment loans made by

A finance charge is the dollar cost of credit or the cost of borrowing.

Visa and MasterCard are the most commonly recognized bank card names as well as the actual lenders.

Three methods are employed to calculate interest on single-payment loans: the declining balance method,the discount method,and the add-on interest method.

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

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

Credit cards issued by local and national merchants and other major non-bank companies are examples of

The declining-balance method is widely used by credit unions and consumer finance companies to calculate interest.

Making the minimum payment on a credit card that you continue to use will bring your balance down over time.

An installment purchase agreement provides more protection to the buyer than a conditional sales contract.

The credit limit on a credit card restricts the total cumulative amount of charges that can be made by the borrower over the borrower's lifetime.

The balance of travel and entertainment (T&E) cards must be paid in 60 days.

Revenues for depository institutions that issue bank credit cards are generated from

A line of credit is structured much like a

Most homeowner's and renter's insurance policies typically pay for the $50 fee you might have to pay for unauthorized use of a lost or stolen credit card.

Affinity cards are prestige bank cards with the logo of a sponsoring organization imprinted on the face of the card.

The rule of 78s method,or sum of the digits method,is a widely used method of calculating a prepayment penalty.

On an installment loan,the APR will always be higher than the add-on rate applied.

All mandatory charges to be paid by the borrower must be included in the finance charge.

Another term for a secured credit card is a collateralized credit card.

Affinity cards are a source of revenue for the sponsoring organization.

The declining-balance method is widely used to calculate interest on installment loans made by

A finance charge is the dollar cost of credit or the cost of borrowing.

Visa and MasterCard are the most commonly recognized bank card names as well as the actual lenders.

Three methods are employed to calculate interest on single-payment loans: the declining balance method,the discount method,and the add-on interest method.

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