Question 1

________ is short-term credit provided by some department stores to consumers to purchase specific items.

Accepted Answer

Non-instal

Question 2

A commitment by an insurance company to cover credit repayments under adverse conditions such as accident or illness is called

Accepted Answer

A)  accident insurance. 
B)  credit insurance. 
C)  health insurance. 
D)  unemployment insurance. 
A)  accident insurance. 
B)  credit insurance. 
C)  health insurance. 
D)  unemployment insurance.

Question 3

Which of the following is not true regarding revolving open-end credit?

Accepted Answer

A)  Credit cards are an example of it. 
B)  A specific maximum amount of credit is established. 
C)  If the balance is not paid off over a period of months, a penalty is incurred. 
D)  Interest is charged on the remaining balance each month. 
A)  Credit cards are an example of it. 
B)  A specific maximum amount of credit is established. 
C)  If the balance is not paid off over a period of months, a penalty is incurred. 
D)  Interest is charged on the remaining balance each month.

Question 4

Which of the following is a disadvantage of using credit?

Accepted Answer

A)  Ease of returning merchandise 
B)  Shopping convenience 
C)  Slowing of progress toward financial goals 
D)  Capacity to access credit in the future 
A)  Ease of returning merchandise 
B)  Shopping convenience 
C)  Slowing of progress toward financial goals 
D)  Capacity to access credit in the future

Question 5

If you find that you will not be able to make credit payments on time,the best course of action is to immediately notify the creditor.

Accepted Answer

A) True 
 B)False

Question 6

Paying your phone bill and electric bill on time each month will help you to establish a(n)________.

Accepted Answer

The answer of Paying your phone bill and electric bill...

Question 7

)The widespread adoption of EMV technology is likely to reduce

Accepted Answer

A)  pretexting. 
B)  phishing. 
C)  pharming. 
D)  skimming. 
A)  pretexting. 
B)  phishing. 
C)  pharming. 
D)  skimming.

Question 8

Unless your identity is stolen by someone out of state,you should only report the crime to local law enforcement.

Accepted Answer

A) True 
 B)False

Question 9

Manipulating e-mail viruses and host files to redirect users from legitimate commercial Web sites to bogus Web sites to obtain log-in names and passwords is referred to as

Accepted Answer

A)  pharming. 
B)  phishing. 
C)  skimming. 
D)  trolling. 
A)  pharming. 
B)  phishing. 
C)  skimming. 
D)  trolling.

Question 10

Very high credit scores are considered anything over ________.

Accepted Answer

The answer of Very high credit scores are considered anything...

Question 11

A credit score of ________ would normally allow you to have easy approval for credit.

Accepted Answer

A)  500 
B)  600 
C)  700 
D)  1,000 
A)  500 
B)  600 
C)  700 
D)  1,000

Question 12

Federal law requires creditors to explain the reasons for the denial of credit.

Accepted Answer

A) True 
 B)False

Question 13

Credit extended to consumers for short periods of time to make specific purchases is

Accepted Answer

A)  installment credit. 
B)  non-installment credit. 
C)  revolving open-end credit. 
D)  minimum limit credit. 
A)  installment credit. 
B)  non-installment credit. 
C)  revolving open-end credit. 
D)  minimum limit credit.

Question 14

Advantages of using credit are all of the following except

Accepted Answer

A)  the ability to cover cash flow shortages. 
B)  increases the number of checks written. 
C)  the ability to buy large items earlier. 
D)  convenience in making day-to-day transactions. 
A)  the ability to cover cash flow shortages. 
B)  increases the number of checks written. 
C)  the ability to buy large items earlier. 
D)  convenience in making day-to-day transactions.

Question 15

The Identity Theft and Assumption Deterrence Act has designated which federal agency as the central clearinghouse for all identity theft complaints?

Accepted Answer

A)  FBI 
B)  CIA 
C)  FTC 
D)  WPA 
A)  FBI 
B)  CIA 
C)  FTC 
D)  WPA

Question 16

Historical credit problems normally remain on a credit bureau's report for seven years and ten years for bankruptcy.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following will not be included on your credit report?

Accepted Answer

A)  Social Security number 
B)  FICO score 
C)  Unpaid accounts 
D)  Companies that have recently accessed your report 
A)  Social Security number 
B)  FICO score 
C)  Unpaid accounts 
D)  Companies that have recently accessed your report

Question 18

If you refrain from using any credit,it will assure you the lowest possible interest rate when you decide to use it.

Accepted Answer

A) True 
 B)False

Question 19

Use the following two columns of items to answer the matching questions below:
-Social Security card

Accepted Answer

A) copying credit information from the magnetic strip on a credit card 
B) something you should install on your computer to protect you from hackers and worms 
C) Bsomething you should never carry in your wallet 
D) the federal agency that acts as a clearinghouse for all identity theft complaints 
E) obtaining information on a person's identity from discarded items 
A) copying credit information from the magnetic strip on a credit card 
B) something you should install on your computer to protect you from hackers and worms 
C) Bsomething you should never carry in your wallet 
D) the federal agency that acts as a clearinghouse for all identity theft complaints 
E) obtaining information on a person's identity from discarded items

Question 20

Use the following two columns of items to answer the matching questions below:
-Firewall and virus protection

Accepted Answer

A) copying credit information from the magnetic strip on a credit card 
B) something you should install on your computer to protect you from hackers and worms 
C) Bsomething you should never carry in your wallet 
D) the federal agency that acts as a clearinghouse for all identity theft complaints 
E) obtaining information on a person's identity from discarded items 
A) copying credit information from the magnetic strip on a credit card 
B) something you should install on your computer to protect you from hackers and worms 
C) Bsomething you should never carry in your wallet 
D) the federal agency that acts as a clearinghouse for all identity theft complaints 
E) obtaining information on a person's identity from discarded items

Exam 7: Assessing and Securing Your Credit

________ is short-term credit provided by some department stores to consumers to purchase specific items.

A commitment by an insurance company to cover credit repayments under adverse conditions such as accident or illness is called

Which of the following is not true regarding revolving open-end credit?

Which of the following is a disadvantage of using credit?

If you find that you will not be able to make credit payments on time,the best course of action is to immediately notify the creditor.

Paying your phone bill and electric bill on time each month will help you to establish a(n)________.

)The widespread adoption of EMV technology is likely to reduce

Unless your identity is stolen by someone out of state,you should only report the crime to local law enforcement.

Manipulating e-mail viruses and host files to redirect users from legitimate commercial Web sites to bogus Web sites to obtain log-in names and passwords is referred to as

Very high credit scores are considered anything over ________.

A credit score of ________ would normally allow you to have easy approval for credit.

Federal law requires creditors to explain the reasons for the denial of credit.

Credit extended to consumers for short periods of time to make specific purchases is

Advantages of using credit are all of the following except

The Identity Theft and Assumption Deterrence Act has designated which federal agency as the central clearinghouse for all identity theft complaints?

Historical credit problems normally remain on a credit bureau's report for seven years and ten years for bankruptcy.

Which of the following will not be included on your credit report?

If you refrain from using any credit,it will assure you the lowest possible interest rate when you decide to use it.

Use the following two columns of items to answer the matching questions below: -Social Security card

Use the following two columns of items to answer the matching questions below: -Firewall and virus protection

Overview of a Financial Plan

Planning With Personal Financial Statements

Applying Time Value Concepts

Using Tax Concepts for Planning

Banking and Interest Rates

Managing Your Money

Managing Your Credit

Personal Loans

Purchasing and Financing a Home

Auto and Homeowners Insurance

Health and Disability Insurance

Life Insurance

Investing Fundamentals

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Asset Allocation

Retirement Planning

Estate Planning

Integrating the Components of a Financial Plan

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