Question 1

The proceeds of a home equity loan can be used for just about any purpose,and the interest paid is usually tax deductible.

Accepted Answer

A) True 
 B)False

Question 2

Student credit cards are structured much differently than regular credit cards.

Accepted Answer

A) True 
 B)False

Question 3

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-In the year after the Credit Card Act of 2009 was passed,there was a(n)[increase | decrease] in late payments.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 4

The more credit cards one has,the better one's credit score.

Accepted Answer

A) True 
 B)False

Question 5

Home equity loans are one of the least expensive forms of consumer credit.

Accepted Answer

A) True 
 B)False

Question 6

Credit cards with very low minimum payment requirements are in the consumer's best interest.

Accepted Answer

A) True 
 B)False

Question 7

Open account credit is characterized by

Accepted Answer

A) no credit limit. 
B) a monthly credit statement. 
C) annual billing. 
D) minimum balance requirements. 
E) none of the above. 
A) no credit limit. 
B) a monthly credit statement. 
C) annual billing. 
D) minimum balance requirements. 
E) none of the above.

Question 8

When canceling a credit card,you should cut up the card and ____ that you are canceling your account.

Accepted Answer

A) inform the issuer in writing 
B) call the issuer and explain 
C) inform the credit bureau in writing 
D) call the credit bureau and explain 
E) all of the above 
A) inform the issuer in writing 
B) call the issuer and explain 
C) inform the credit bureau in writing 
D) call the credit bureau and explain 
E) all of the above

Question 9

The following information provides insight to a lender about the applicant's creditworthiness except

Accepted Answer

A) personal/family matters 
B) housing 
C) employment 
D) income 
E) all of the above provide insight 
A) personal/family matters 
B) housing 
C) employment 
D) income 
E) all of the above provide insight

Question 10

Persons with very poor credit ratings can still get ____ credit cards.

Accepted Answer

A) secured 
B) student 
C) prestige 
D) affinity 
E) rebate 
A) secured 
B) student 
C) prestige 
D) affinity 
E) rebate

Question 11

The market value of your house is $175,000 and you have a first mortgage balance of $100,000.If a lender requires a 80% loan-to-market value ratio,how large could your home equity loan be?

Accepted Answer

($175,000

Question 12

Ted and Karen have a combined take-home income of $4,500.Their total monthly payments on consumer debt are $875.What is their debt safety ratio? Are they exhibiting any sign of approaching credit problems?

Accepted Answer

$875/$4,500 = 19.4%
They are approaching

Question 13

Always paying cash is helpful in establishing a high level of creditworthiness.

Accepted Answer

A) True 
 B)False

Question 14

Methods used by identity thieves to obtain personal information include all except

Accepted Answer

A) dumpster diving. 
B) phishing. 
C) skimming. 
D) pretexting. 
E) skimping. 
A) dumpster diving. 
B) phishing. 
C) skimming. 
D) pretexting. 
E) skimping.

Question 15

Credit reports on individual borrowers are issued by credit card issuers.

Accepted Answer

A) True 
 B)False

Question 16

The most common method of computing finance charges on a credit card is the average daily balance method including new purchases.

Accepted Answer

A) True 
 B)False

Question 17

The year after the Credit Card Act of 2009 went into effect

Accepted Answer

A) credit card balances rose. 
B) late payments increased. 
C) payment defaults declined. 
D) there was a drop in the use of debit cards relative to credit cards. 
E) a, b, and c are correct. 
A) credit card balances rose. 
B) late payments increased. 
C) payment defaults declined. 
D) there was a drop in the use of debit cards relative to credit cards. 
E) a, b, and c are correct.

Question 18

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-In the year after the Credit Card Act of 2009 was passed,there was a(n)[increase | decrease] in defaults.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 19

Using credit is the ideal way to provide for financial emergencies.

Accepted Answer

A) True 
 B)False

Question 20

Credit scoring systems are often used by lenders to determine your creditworthiness.

Accepted Answer

A) True 
 B)False

The proceeds of a home equity loan can be used for just about any purpose,and the interest paid is usually tax deductible.

Student credit cards are structured much differently than regular credit cards.

The more credit cards one has,the better one's credit score.

Home equity loans are one of the least expensive forms of consumer credit.

Credit cards with very low minimum payment requirements are in the consumer's best interest.

Open account credit is characterized by

When canceling a credit card,you should cut up the card and ____ that you are canceling your account.

The following information provides insight to a lender about the applicant's creditworthiness except

Persons with very poor credit ratings can still get ____ credit cards.

The market value of your house is $175,000 and you have a first mortgage balance of $100,000.If a lender requires a 80% loan-to-market value ratio,how large could your home equity loan be?

Ted and Karen have a combined take-home income of $4,500.Their total monthly payments on consumer debt are $875.What is their debt safety ratio? Are they exhibiting any sign of approaching credit problems?

Always paying cash is helpful in establishing a high level of creditworthiness.

Methods used by identity thieves to obtain personal information include all except

Credit reports on individual borrowers are issued by credit card issuers.

The most common method of computing finance charges on a credit card is the average daily balance method including new purchases.

The year after the Credit Card Act of 2009 went into effect

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -In the year after the Credit Card Act of 2009 was passed,there was a(n)[increase | decrease] in defaults.

Using credit is the ideal way to provide for financial emergencies.

Credit scoring systems are often used by lenders to determine your creditworthiness.

Understanding the Financial Planning Process

Using Financial Statements and Budgets

Preparing Your Taxes

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds

Planning for Retirement

Preserving Your Estate

Filters

Exam 6: Using Credit

The proceeds of a home equity loan can be used for just about any purpose,and the interest paid is usually tax deductible.

Student credit cards are structured much differently than regular credit cards.

The more credit cards one has,the better one's credit score.

Home equity loans are one of the least expensive forms of consumer credit.

Credit cards with very low minimum payment requirements are in the consumer's best interest.

Open account credit is characterized by

When canceling a credit card,you should cut up the card and ____ that you are canceling your account.

The following information provides insight to a lender about the applicant's creditworthiness except

Persons with very poor credit ratings can still get ____ credit cards.

The market value of your house is $175,000 and you have a first mortgage balance of $100,000.If a lender requires a 80% loan-to-market value ratio,how large could your home equity loan be?

Ted and Karen have a combined take-home income of $4,500.Their total monthly payments on consumer debt are $875.What is their debt safety ratio? Are they exhibiting any sign of approaching credit problems?

Always paying cash is helpful in establishing a high level of creditworthiness.

Methods used by identity thieves to obtain personal information include all except

Credit reports on individual borrowers are issued by credit card issuers.

The most common method of computing finance charges on a credit card is the average daily balance method including new purchases.

The year after the Credit Card Act of 2009 went into effect

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -In the year after the Credit Card Act of 2009 was passed,there was a(n)[increase | decrease] in defaults.

Using credit is the ideal way to provide for financial emergencies.

Credit scoring systems are often used by lenders to determine your creditworthiness.

Understanding the Financial Planning Process

Using Financial Statements and Budgets

Preparing Your Taxes

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds

Planning for Retirement

Preserving Your Estate

Filters