Question 1

You should keep a record of your credit card number separate from your card.

Accepted Answer

A) True 
 B)False

Question 2

Timothy Carter has net monthly income of $3,800.He has a monthly auto loan payment of $350,a student loan payment of $150,a mortgage payment of $1,200,and a credit card minimum payment of $45.What is his debt-payments-to-income ratio?

Accepted Answer

A)  13.2% 
B)  14.3% 
C)  36.7% 
D)  42.0% 
E)  45.9% 
A)  13.2% 
B)  14.3% 
C)  36.7% 
D)  42.0% 
E)  45.9%

Question 3

A credit file can include your spouse's name and Social Security number.

Accepted Answer

A) True 
 B)False

Question 4

A loan that must be repaid in total on a specified day,usually within 30 to 90 days,is

Accepted Answer

A)  A credit card. 
B)  An installment cash credit. 
C)  A bank line of credit. 
D)  Open-end credit. 
E)  Single lump-sum credit. 
A)  A credit card. 
B)  An installment cash credit. 
C)  A bank line of credit. 
D)  Open-end credit. 
E)  Single lump-sum credit.

Question 5

Becka borrowed $100 from her cousin at the rate of 6% per year.If the inflation rate was 2% that year,what is her cousin's actual rate of return on the loan?

Accepted Answer

A)  2% 
B)  4% 
C)  6% 
D)  8% 
E)  10% 
A)  2% 
B)  4% 
C)  6% 
D)  8% 
E)  10%

Question 6

According to law,a creditor may threaten your credit rating while you are negotiating a billing dispute.

Accepted Answer

A) True 
 B)False

Question 7

The use of property or savings to secure a loan relates to

Accepted Answer

A)  Character. 
B)  Capacity. 
C)  Capital. 
D)  Collateral. 
E)  Conditions. 
A)  Character. 
B)  Capacity. 
C)  Capital. 
D)  Collateral. 
E)  Conditions.

Question 8

According to the Fair Credit Billing Act of 1975,a creditor must adjust the disputed amount in your account or tell you why the bill is correct within 30 days.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is NOT correct?

Accepted Answer

A)  Using credit can result in a greater chance of bankruptcy. 
B)  Using credit can decrease the amount of money that will be available to spend in the future. 
C)  Using credit offers convenience when shopping on the Internet. 
D)  Using credit cards typically offer a "float" of up to 10 days. 
E)  Using credit allows a consumer to shop without carrying a large amount of cash. 
A)  Using credit can result in a greater chance of bankruptcy. 
B)  Using credit can decrease the amount of money that will be available to spend in the future. 
C)  Using credit offers convenience when shopping on the Internet. 
D)  Using credit cards typically offer a "float" of up to 10 days. 
E)  Using credit allows a consumer to shop without carrying a large amount of cash.

Question 10

Who is responsible for a loan repayment?

Accepted Answer

A)  The store granting credit 
B)  The credit card company 
C)  The government 
D)  The cosigner 
E)  The bank 
A)  The store granting credit 
B)  The credit card company 
C)  The government 
D)  The cosigner 
E)  The bank

Question 11

Patrick Guitman has net annual income of $48,000.He has monthly payments as follows:

Accepted Answer

@#IMG-DLM& What is his debt-payments-to-income rat

Question 12

The Truth in Lending Act requires that creditors explain how they calculate the finance charge.

Accepted Answer

A) True 
 B)False

Question 13

FICO scores generally range from

Accepted Answer

A)  100 to 1000. 
B)  200 to 700. 
C)  350 to 850. 
D)  450 to 650. 
E)  500 to 1000. 
A)  100 to 1000. 
B)  200 to 700. 
C)  350 to 850. 
D)  450 to 650. 
E)  500 to 1000.

Question 14

Acme Home Lending offers home equity loans up to 80% of the home value for its customers.If Sally Johnson has a home valued at $200,000 and a current mortgage of $50,000,how much can she borrow in a home equity loan from Acme?

Accepted Answer

A)  $50,000 
B)  $80,000 
C)  $110,000 
D)  $150,000 
E)  $160,000 
A)  $50,000 
B)  $80,000 
C)  $110,000 
D)  $150,000 
E)  $160,000

Question 15

If you are denied credit,

Accepted Answer

A)  You have a legal right to sue the credit bureau. 
B)  Your parent can purchase a copy of your credit report. 
C)  You have a legal right to sue the company that denied you credit. 
D)  The denial will remain in your credit file for 10 years. 
E)  You are entitled to a free copy of your credit report. 
A)  You have a legal right to sue the credit bureau. 
B)  Your parent can purchase a copy of your credit report. 
C)  You have a legal right to sue the company that denied you credit. 
D)  The denial will remain in your credit file for 10 years. 
E)  You are entitled to a free copy of your credit report.

Question 16

The annual percentage rate is lower than the stated rate for loans that are repaid in monthly payments.

Accepted Answer

A) True 
 B)False

Question 17

If you double the monthly payment for a credit card,the loan will be paid off in

Accepted Answer

A)  Half the time. 
B)  Less than half the time. 
C)  More than half the time. 
D)  The additional payment will have no impact. 
E)  Not enough information is available to answer. 
A)  Half the time. 
B)  Less than half the time. 
C)  More than half the time. 
D)  The additional payment will have no impact. 
E)  Not enough information is available to answer.

Question 18

The expected rate of inflation should not be considered when determining the amount of interest a creditor should charge.

Accepted Answer

A) True 
 B)False

Question 19

Compare closed-end credit with open-end credit.

Accepted Answer

With closed-end credit,a consumer pays b

Question 20

Although credit allows immediate satisfaction of needs and desires,a greater advantage is that it increases total purchasing power.

Accepted Answer

A) True 
 B)False

You should keep a record of your credit card number separate from your card.

Timothy Carter has net monthly income of $3,800.He has a monthly auto loan payment of $350,a student loan payment of $150,a mortgage payment of $1,200,and a credit card minimum payment of $45.What is his debt-payments-to-income ratio?

A credit file can include your spouse's name and Social Security number.

A loan that must be repaid in total on a specified day,usually within 30 to 90 days,is

Becka borrowed $100 from her cousin at the rate of 6% per year.If the inflation rate was 2% that year,what is her cousin's actual rate of return on the loan?

According to law,a creditor may threaten your credit rating while you are negotiating a billing dispute.

The use of property or savings to secure a loan relates to

According to the Fair Credit Billing Act of 1975,a creditor must adjust the disputed amount in your account or tell you why the bill is correct within 30 days.

Which of the following is NOT correct?

Who is responsible for a loan repayment?

Patrick Guitman has net annual income of $48,000.He has monthly payments as follows:

The Truth in Lending Act requires that creditors explain how they calculate the finance charge.

FICO scores generally range from

Acme Home Lending offers home equity loans up to 80% of the home value for its customers.If Sally Johnson has a home valued at $200,000 and a current mortgage of $50,000,how much can she borrow in a home equity loan from Acme?

If you are denied credit,

The annual percentage rate is lower than the stated rate for loans that are repaid in monthly payments.

If you double the monthly payment for a credit card,the loan will be paid off in

The expected rate of inflation should not be considered when determining the amount of interest a creditor should charge.

Compare closed-end credit with open-end credit.

Although credit allows immediate satisfaction of needs and desires,a greater advantage is that it increases total purchasing power.

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

You should keep a record of your credit card number separate from your card.

Timothy Carter has net monthly income of $3,800.He has a monthly auto loan payment of $350,a student loan payment of $150,a mortgage payment of $1,200,and a credit card minimum payment of $45.What is his debt-payments-to-income ratio?

A credit file can include your spouse's name and Social Security number.

A loan that must be repaid in total on a specified day,usually within 30 to 90 days,is

Becka borrowed $100 from her cousin at the rate of 6% per year.If the inflation rate was 2% that year,what is her cousin's actual rate of return on the loan?

According to law,a creditor may threaten your credit rating while you are negotiating a billing dispute.

The use of property or savings to secure a loan relates to

According to the Fair Credit Billing Act of 1975,a creditor must adjust the disputed amount in your account or tell you why the bill is correct within 30 days.

Which of the following is NOT correct?

Who is responsible for a loan repayment?

Patrick Guitman has net annual income of $48,000.He has monthly payments as follows:

The Truth in Lending Act requires that creditors explain how they calculate the finance charge.

FICO scores generally range from

Acme Home Lending offers home equity loans up to 80% of the home value for its customers.If Sally Johnson has a home valued at $200,000 and a current mortgage of $50,000,how much can she borrow in a home equity loan from Acme?

If you are denied credit,

The annual percentage rate is lower than the stated rate for loans that are repaid in monthly payments.

If you double the monthly payment for a credit card,the loan will be paid off in

The expected rate of inflation should not be considered when determining the amount of interest a creditor should charge.

Compare closed-end credit with open-end credit.

Although credit allows immediate satisfaction of needs and desires,a greater advantage is that it increases total purchasing power.

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