Question 1

Closed-end credit is used for a specific purpose and involves a specific amount.

Accepted Answer

A) True 
 B)False

Question 2

If you are a cosigner for a loan and the debt is not repaid,that fact will appear on your credit report.

Accepted Answer

A) True 
 B)False

Question 3

What are the 5 Cs of credit?

Accepted Answer

Character,capacity,c

Question 4

List at least five items that can appear in a credit file.

Accepted Answer

A typical credit bureau file may contain

Question 5

Consumer credit allows businesses to be more efficient or more productive.

Accepted Answer

A) True 
 B)False

Question 6

Experts suggest that the debt payments-to-income ratio should be a maximum of

Accepted Answer

A)  0% 
B)  20% 
C)  25% 
D)  50% 
E)  100% 
A)  0% 
B)  20% 
C)  25% 
D)  50% 
E)  100%

Question 7

If you think a bill is wrong or you want more information about the bill,then you and your creditor should follow all of the steps here except

Accepted Answer

A)  You should notify your creditor in writing. 
B)  You should pay the portion of the bill that is not in question. 
C)  Your creditor must acknowledge your letter within 30 days. 
D)  Your creditor must adjust your account or tell you why the bill is correct within two billing cycles. 
E)  Your creditor must reimburse you for your time spent researching the error. 
A)  You should notify your creditor in writing. 
B)  You should pay the portion of the bill that is not in question. 
C)  Your creditor must acknowledge your letter within 30 days. 
D)  Your creditor must adjust your account or tell you why the bill is correct within two billing cycles. 
E)  Your creditor must reimburse you for your time spent researching the error.

Question 8

Define two of the following.Provide an example of each:
a.Credit card.
b.Debit card.
c.Gift card.
d.Smart card.
e.Travel and entertainment card.

Accepted Answer

a.A credit card essentially is a short-t

Question 9

Information about a personal bankruptcy may be reported in your credit file for

Accepted Answer

A)  1 year. 
B)  3 years. 
C)  7 years. 
D)  10 years. 
E)  Permanently. 
A)  1 year. 
B)  3 years. 
C)  7 years. 
D)  10 years. 
E)  Permanently.

Question 10

Installment credit exploded on the American scene with the advent of the

Accepted Answer

A)  Airplane 
B)  Automobile 
C)  Cell phone 
D)  Computer 
E)  Train 
A)  Airplane 
B)  Automobile 
C)  Cell phone 
D)  Computer 
E)  Train

Question 11

Rachel Johnson went to the ATM to draw $300 cash with her debit card.She inadvertently pulled out her credit card instead,not realizing the expenses for cash advances.If her credit card company charges a cash advance fee of 3% and interest at 24% APR,what are the total fees she will pay for her mistake?

Accepted Answer

A)  $3 
B)  $6 
C)  $9 
D)  $15 
E)  $24 
A)  $3 
B)  $6 
C)  $9 
D)  $15 
E)  $24

Question 12

Which of the following is an example of closed-end credit?

Accepted Answer

A)  A mortgage loan. 
B)  A department store credit card. 
C)  Overdraft protection. 
D)  A bank line of credit. 
E)  All of these are examples of closed-end credit. 
A)  A mortgage loan. 
B)  A department store credit card. 
C)  Overdraft protection. 
D)  A bank line of credit. 
E)  All of these are examples of closed-end credit.

Question 13

If you miss payments on a home equity loan,you can lose your

Accepted Answer

A)  Savings account. 
B)  Car. 
C)  House. 
D)  Retirement account. 
E)  Furnishings. 
A)  Savings account. 
B)  Car. 
C)  House. 
D)  Retirement account. 
E)  Furnishings.

Question 14

Thomas cosigned a loan for his friend Anders.If Anders does not pay the loan,what is Thomas liable for?

Accepted Answer

Thomas is liable for

Question 15

Consumer credit refers to the use of debit cards for personal needs.

Accepted Answer

A) True 
 B)False

Question 16

All of the following are consumer credit protection laws except

Accepted Answer

A)  The Truth in Lending and Consumer Leasing Act 
B)  The Equal Credit Opportunity Act 
C)  The Fair Credit Billing Act 
D)  The Credit Lawsuit Act 
E)  The Consumer Credit Reporting Reform Act 
A)  The Truth in Lending and Consumer Leasing Act 
B)  The Equal Credit Opportunity Act 
C)  The Fair Credit Billing Act 
D)  The Credit Lawsuit Act 
E)  The Consumer Credit Reporting Reform Act

Question 17

Which of the following is an example of open-end credit?

Accepted Answer

A)  An automobile loan 
B)  A department store credit card 
C)  An installment loan for purchasing furniture 
D)  A mortgage loan 
E)  Single lump-sum credit 
A)  An automobile loan 
B)  A department store credit card 
C)  An installment loan for purchasing furniture 
D)  A mortgage loan 
E)  Single lump-sum credit

Question 18

Consumer credit dates back to colonial times when it was extensively used by farmers.

Accepted Answer

A) True 
 B)False

Question 19

Many think that perhaps the greatest disadvantage of using credit is

Accepted Answer

A)  The temptation to overspend. 
B)  The convenience offered instead of using cash. 
C)  The float from using credit. 
D)  The increase in total purchasing power. 
E)  The increased satisfaction during present and future income periods. 
A)  The temptation to overspend. 
B)  The convenience offered instead of using cash. 
C)  The float from using credit. 
D)  The increase in total purchasing power. 
E)  The increased satisfaction during present and future income periods.

Question 20

Which of the following is often the first sign of a stolen identity?

Accepted Answer

A)  You receive bills for a credit card account you never opened. 
B)  You see charges to your account for things you purchased. 
C)  You receive a phone call from the thief. 
D)  You receive a duplicate credit card from your credit card company. 
E)  All of these are typical signs of a stolen identity. 
A)  You receive bills for a credit card account you never opened. 
B)  You see charges to your account for things you purchased. 
C)  You receive a phone call from the thief. 
D)  You receive a duplicate credit card from your credit card company. 
E)  All of these are typical signs of a stolen identity.

Closed-end credit is used for a specific purpose and involves a specific amount.

If you are a cosigner for a loan and the debt is not repaid,that fact will appear on your credit report.

What are the 5 Cs of credit?

List at least five items that can appear in a credit file.

Consumer credit allows businesses to be more efficient or more productive.

Experts suggest that the debt payments-to-income ratio should be a maximum of

If you think a bill is wrong or you want more information about the bill,then you and your creditor should follow all of the steps here except

Define two of the following.Provide an example of each: a.Credit card. b.Debit card. c.Gift card. d.Smart card. e.Travel and entertainment card.

Information about a personal bankruptcy may be reported in your credit file for

Installment credit exploded on the American scene with the advent of the

Which of the following is an example of closed-end credit?

If you miss payments on a home equity loan,you can lose your

Thomas cosigned a loan for his friend Anders.If Anders does not pay the loan,what is Thomas liable for?

Consumer credit refers to the use of debit cards for personal needs.

All of the following are consumer credit protection laws except

Which of the following is an example of open-end credit?

Consumer credit dates back to colonial times when it was extensively used by farmers.

Many think that perhaps the greatest disadvantage of using credit is

Which of the following is often the first sign of a stolen identity?

Personal Financial Planning in Action

Money Management Skills

Taxes in Your Financial Plan

Financial Services: Savings Plans and Payment Account

Consumer Purchasing Strategies and Wise Buying of Motor Vehicles

Selecting and Financing Housing

Home and Automobile Insurance

Health and Disability Income Insurance

Financial Planning With Life Insurance

Investing Basics and Evaluating Bonds

Investing in Stocks

Investing in Mutual Funds

Starting Early: Retirement and Estate Planning

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Exam 5: Consumer Credit: Advantages, Dis-Advantages, Sources, and Costs

Closed-end credit is used for a specific purpose and involves a specific amount.

If you are a cosigner for a loan and the debt is not repaid,that fact will appear on your credit report.

What are the 5 Cs of credit?

List at least five items that can appear in a credit file.

Consumer credit allows businesses to be more efficient or more productive.

Experts suggest that the debt payments-to-income ratio should be a maximum of

If you think a bill is wrong or you want more information about the bill,then you and your creditor should follow all of the steps here except

Define two of the following.Provide an example of each: a.Credit card. b.Debit card. c.Gift card. d.Smart card. e.Travel and entertainment card.

Information about a personal bankruptcy may be reported in your credit file for

Installment credit exploded on the American scene with the advent of the

Which of the following is an example of closed-end credit?

If you miss payments on a home equity loan,you can lose your

Thomas cosigned a loan for his friend Anders.If Anders does not pay the loan,what is Thomas liable for?

Consumer credit refers to the use of debit cards for personal needs.

All of the following are consumer credit protection laws except

Which of the following is an example of open-end credit?

Consumer credit dates back to colonial times when it was extensively used by farmers.

Many think that perhaps the greatest disadvantage of using credit is

Which of the following is often the first sign of a stolen identity?

Personal Financial Planning in Action

Money Management Skills

Taxes in Your Financial Plan

Financial Services: Savings Plans and Payment Account

Consumer Purchasing Strategies and Wise Buying of Motor Vehicles

Selecting and Financing Housing

Home and Automobile Insurance

Health and Disability Income Insurance

Financial Planning With Life Insurance

Investing Basics and Evaluating Bonds

Investing in Stocks

Investing in Mutual Funds

Starting Early: Retirement and Estate Planning

Filters