Question 1

What are the two general rules of measuring credit capacity?

Accepted Answer

Answers will vary

Question 2

Interest is a periodic charge for the use of credit,or other finance charges.

Accepted Answer

A) True 
 B)False  True

Question 3

Which one of the following is important to do to help avoid credit card fraud?

Accepted Answer

A) sign your card as soon as you get it 
B) give out your credit card number over the phone 
C) write your credit card number on the outside of envelopes 
D) leave your credit card lying around anywhere 
E) if your billing statement is incorrect,ignore it 
A) sign your card as soon as you get it 
B) give out your credit card number over the phone 
C) write your credit card number on the outside of envelopes 
D) leave your credit card lying around anywhere 
E) if your billing statement is incorrect,ignore it A

Question 4

While you are resolving a billing dispute,a creditor may:

Accepted Answer

A) not threaten your credit rating. 
B) send this information to a credit bureau. 
C) require you to pay the bill in full and then credit your account if the error is found. 
D) start the collection process. 
E) demand that you surrender your credit card. 
A) not threaten your credit rating. 
B) send this information to a credit bureau. 
C) require you to pay the bill in full and then credit your account if the error is found. 
D) start the collection process. 
E) demand that you surrender your credit card.

Question 5

A good example of open-end credit is:

Accepted Answer

A) the use of a bank credit card to make a purchase. 
B) a mortgage loan from a savings and loan institution. 
C) an automobile loan from a credit union. 
D) an installment loan from a furniture store. 
E) an installment loan for purchasing a major appliancE. 
A) the use of a bank credit card to make a purchase. 
B) a mortgage loan from a savings and loan institution. 
C) an automobile loan from a credit union. 
D) an installment loan from a furniture store. 
E) an installment loan for purchasing a major appliancE.

Question 6

Consumer credit refers to the use of credit for personal needs (except a home mortgage)by individuals.

Accepted Answer

A) True 
 B)False

Question 7

The Fair Credit Billing Act has a provision in which a lender can threaten your credit rating while you are resolving a billing dispute.

Accepted Answer

A) True 
 B)False

Question 8

Which federal law prohibits credit card issuers from sending unrequested cards?

Accepted Answer

A) Truth in Lending Act 
B) Fair Credit Reporting Act 
C) Fair Credit Billing Act 
D) Equal Credit Opportunity Act 
E) Fair Debt Collection Practices Act 
A) Truth in Lending Act 
B) Fair Credit Reporting Act 
C) Fair Credit Billing Act 
D) Equal Credit Opportunity Act 
E) Fair Debt Collection Practices Act

Question 9

If you cosign and the debt is not paid off,that fact does not become a part of your credit record.

Accepted Answer

A) True 
 B)False

Question 10

Karen Price has determined that her net worth is $30,000,excluding her home.She owes $80,000 on her mortgage and $15,000 on a car loan.What is Karen's debt-to-equity ratio?

Accepted Answer

A) 3.2 
B) 2.0 
C) 0.5 
D) 2.7 
E) 0.3 
A) 3.2 
B) 2.0 
C) 0.5 
D) 2.7 
E) 0.3

Question 11

The smaller the debt-to-equity ratio,the riskier the situation is for lenders and borrowers.

Accepted Answer

A) True 
 B)False

Question 12

A home equity loan is usually set up as a revolving line of credit,typically with a variable interest rate.

Accepted Answer

A) True 
 B)False

Question 13

The baby boom generation currently represents about 30 percent of the population but holds nearly ____________ percent of the debt outstanding.

Accepted Answer

A) 80 
B) 70 
C) 60 
D) 50 
E) 40 
A) 80 
B) 70 
C) 60 
D) 50 
E) 40

Question 14

The Federal Trade Commission receives more consumer complaints about credit bureaus than about any other industry.

Accepted Answer

A) True 
 B)False

Question 15

Debit cards are often called bank cards,ATM cards,cash cards,and check cards.

Accepted Answer

A) True 
 B)False

Question 16

Which federal law allows consumers to withhold payment for faulty or defective goods or services (within certain limitations)when purchased with a credit card?

Accepted Answer

A) Truth in Lending Act 
B) Fair Credit Reporting Act 
C) Fair Credit Billing Act 
D) Equal Credit Opportunity Act 
E) Fair Debt Collection Practices Act 
A) Truth in Lending Act 
B) Fair Credit Reporting Act 
C) Fair Credit Billing Act 
D) Equal Credit Opportunity Act 
E) Fair Debt Collection Practices Act

Question 17

How do creditors determine your credit-worthiness?

Accepted Answer

Creditors determine your credit-worthine

Question 18

In the 5 Cs of credit,capacity refers to the borrower's financial ability to meet credit obligations.

Accepted Answer

A) True 
 B)False

Question 19

A debit card:

Accepted Answer

A) immediately deducts the cost of your purchase from your bank account. 
B) credits your account at the moment you buy goods or services. 
C) is a new type of a credit card issued by VISA International. 
D) is another name for a travel and entertainment carD. 
E) typically has a credit limit of $1,000. 
A) immediately deducts the cost of your purchase from your bank account. 
B) credits your account at the moment you buy goods or services. 
C) is a new type of a credit card issued by VISA International. 
D) is another name for a travel and entertainment carD. 
E) typically has a credit limit of $1,000.

Question 20

Perhaps the greatest disadvantage of using credit is the temptation to overspend.

Accepted Answer

A) True 
 B)False

What are the two general rules of measuring credit capacity?

Interest is a periodic charge for the use of credit,or other finance charges.

Which one of the following is important to do to help avoid credit card fraud?

While you are resolving a billing dispute,a creditor may:

A good example of open-end credit is:

Consumer credit refers to the use of credit for personal needs (except a home mortgage)by individuals.

The Fair Credit Billing Act has a provision in which a lender can threaten your credit rating while you are resolving a billing dispute.

Which federal law prohibits credit card issuers from sending unrequested cards?

If you cosign and the debt is not paid off,that fact does not become a part of your credit record.

Karen Price has determined that her net worth is $30,000,excluding her home.She owes $80,000 on her mortgage and $15,000 on a car loan.What is Karen's debt-to-equity ratio?

The smaller the debt-to-equity ratio,the riskier the situation is for lenders and borrowers.

A home equity loan is usually set up as a revolving line of credit,typically with a variable interest rate.

The baby boom generation currently represents about 30 percent of the population but holds nearly ____________ percent of the debt outstanding.

The Federal Trade Commission receives more consumer complaints about credit bureaus than about any other industry.

Debit cards are often called bank cards,ATM cards,cash cards,and check cards.

Which federal law allows consumers to withhold payment for faulty or defective goods or services (within certain limitations)when purchased with a credit card?

How do creditors determine your credit-worthiness?

In the 5 Cs of credit,capacity refers to the borrower's financial ability to meet credit obligations.

A debit card:

Perhaps the greatest disadvantage of using credit is the temptation to overspend.

Personal Finance Basics and the Time Value of Money

Financial Aspects of Career Planning

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

Financial Services: Savings Plans and Payment Accounts

Choosing a Source of Credit: The Costs of Credit Alternatives

Consumer Purchasing Strategies and Legal Protection

The Housing Decision: Factors and Finances

Property and Motor Vehicle Insurance

Health, Disability, and Long-Term Care Insurance

Life Insurance

Investing Fundamentals

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Investing in Real Estate and Other Investment Alternatives

Starting Early: Retirement Planning

Estate Planning

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Exam 6: Introduction to Consumer Credit

What are the two general rules of measuring credit capacity?

Interest is a periodic charge for the use of credit,or other finance charges.

Which one of the following is important to do to help avoid credit card fraud?

While you are resolving a billing dispute,a creditor may:

A good example of open-end credit is:

Consumer credit refers to the use of credit for personal needs (except a home mortgage)by individuals.

The Fair Credit Billing Act has a provision in which a lender can threaten your credit rating while you are resolving a billing dispute.

Which federal law prohibits credit card issuers from sending unrequested cards?

If you cosign and the debt is not paid off,that fact does not become a part of your credit record.

Karen Price has determined that her net worth is $30,000,excluding her home.She owes $80,000 on her mortgage and $15,000 on a car loan.What is Karen's debt-to-equity ratio?

The smaller the debt-to-equity ratio,the riskier the situation is for lenders and borrowers.

A home equity loan is usually set up as a revolving line of credit,typically with a variable interest rate.

The baby boom generation currently represents about 30 percent of the population but holds nearly ____________ percent of the debt outstanding.

The Federal Trade Commission receives more consumer complaints about credit bureaus than about any other industry.

Debit cards are often called bank cards,ATM cards,cash cards,and check cards.

Which federal law allows consumers to withhold payment for faulty or defective goods or services (within certain limitations)when purchased with a credit card?

How do creditors determine your credit-worthiness?

In the 5 Cs of credit,capacity refers to the borrower's financial ability to meet credit obligations.

A debit card:

Perhaps the greatest disadvantage of using credit is the temptation to overspend.

Personal Finance Basics and the Time Value of Money

Financial Aspects of Career Planning

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

Financial Services: Savings Plans and Payment Accounts

Choosing a Source of Credit: The Costs of Credit Alternatives

Consumer Purchasing Strategies and Legal Protection

The Housing Decision: Factors and Finances

Property and Motor Vehicle Insurance

Health, Disability, and Long-Term Care Insurance

Life Insurance

Investing Fundamentals

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Investing in Real Estate and Other Investment Alternatives

Starting Early: Retirement Planning

Estate Planning

Filters