Question 1

It is not a good idea to use credit to

Accepted Answer

A) buy a home. 
B) live beyond one's means. 
C) spread payments within a budget. 
D) purchase expensive items. 
E) replace a check for small items. 
A) buy a home. 
B) live beyond one's means. 
C) spread payments within a budget. 
D) purchase expensive items. 
E) replace a check for small items.

Question 2

Haun and Mei have a home valued at $96,000 and an outstanding mortgage of $50,000.If their lender is willing to provide a home equity loan of up to 85% of market value,how much could they borrow using a home equity loan?

Accepted Answer

A) $14,400 
B) $31,600 
C) $36,800 
D) $46,000 
E) $81,600 
A) $14,400 
B) $31,600 
C) $36,800 
D) $46,000 
E) $81,600

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.
-Most of your debts would be totally discharged under Chapter [7 | 13] of the federal bankruptcy law.

Accepted Answer

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

Question 4

Paying a loan off much quicker than scheduled is one way to build a good credit rating.

Accepted Answer

A) True 
 B)False

Question 5

If the information on your credit report is in dispute,you are entitled to

Accepted Answer

A) correct it. 
B) sue. 
C) erase it. 
D) supply your own explanation about the dispute. 
E) withdraw from the credit bureau. 
A) correct it. 
B) sue. 
C) erase it. 
D) supply your own explanation about the dispute. 
E) withdraw from the credit bureau.

Question 6

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.
-A proper use of open account credit would be to buy a [food | washing machine].

Accepted Answer

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

Question 7

Credit reports are routinely used to predict creditworthiness.

Accepted Answer

A) True 
 B)False

Question 8

William uses his bank credit card frequently; however,he always pays off the total balance on the card each month.What features should William especially look for in a credit card?

Accepted Answer

A) Low annual fee and short grace period 
B) Low annual fee and low interest rate 
C) No annual fee and short grace period 
D) No annual fee and long grace period 
E) High annual fee and low interest rate 
A) Low annual fee and short grace period 
B) Low annual fee and low interest rate 
C) No annual fee and short grace period 
D) No annual fee and long grace period 
E) High annual fee and low interest rate

Question 9

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.
-[The Wage Earner Plan | Straight bankruptcy] involves some type of debt restructuring.

Accepted Answer

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

Question 10

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.
-A home equity line of credit is one of the [most | least] expensive forms of consumer credit.

Accepted Answer

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

Question 11

Due to the Credit Card Act of 2009,finance charges can no longer be calculated using the double-cycle billing approach.

Accepted Answer

A) True 
 B)False

Question 12

All of the following are useful ways to build a strong credit rating except

Accepted Answer

A) Open checking and savings accounts. 
B) Open and use a charge account. 
C) Apply for a long-term loan and occasionally be late with a payment. 
D) Make payments on time. 
E) Talk with the lender if you foresee difficulty in making a payment. 
A) Open checking and savings accounts. 
B) Open and use a charge account. 
C) Apply for a long-term loan and occasionally be late with a payment. 
D) Make payments on time. 
E) Talk with the lender if you foresee difficulty in making a payment.

Question 13

Credit card statements must be sent out at least 21 days before the due date.

Accepted Answer

A) True 
 B)False

Question 14

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.
-Most bank credit cards have interest rates that will [remain the same as long as you hold the card | be adjusted as interest rates in general rise and fall].

Accepted Answer

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

Question 15

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.
-Most creditors [will | will not] be willing to work something out with you if you are having difficulty meeting your payments.

Accepted Answer

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

It is not a good idea to use credit to

Haun and Mei have a home valued at $96,000 and an outstanding mortgage of $50,000.If their lender is willing to provide a home equity loan of up to 85% of market value,how much could they borrow using a home equity loan?

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. -Most of your debts would be totally discharged under Chapter [7 | 13] of the federal bankruptcy law.

Paying a loan off much quicker than scheduled is one way to build a good credit rating.

If the information on your credit report is in dispute,you are entitled to

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. -A proper use of open account credit would be to buy a [food | washing machine].

Credit reports are routinely used to predict creditworthiness.

William uses his bank credit card frequently; however,he always pays off the total balance on the card each month.What features should William especially look for in a credit card?

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. -[The Wage Earner Plan | Straight bankruptcy] involves some type of debt restructuring.

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. -A home equity line of credit is one of the [most | least] expensive forms of consumer credit.

Due to the Credit Card Act of 2009,finance charges can no longer be calculated using the double-cycle billing approach.

All of the following are useful ways to build a strong credit rating except

Credit card statements must be sent out at least 21 days before the due date.

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

It is not a good idea to use credit to

Haun and Mei have a home valued at $96,000 and an outstanding mortgage of $50,000.If their lender is willing to provide a home equity loan of up to 85% of market value,how much could they borrow using a home equity loan?

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. -Most of your debts would be totally discharged under Chapter [7 | 13] of the federal bankruptcy law.

Paying a loan off much quicker than scheduled is one way to build a good credit rating.

If the information on your credit report is in dispute,you are entitled to

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. -A proper use of open account credit would be to buy a [food | washing machine].

Credit reports are routinely used to predict creditworthiness.

William uses his bank credit card frequently; however,he always pays off the total balance on the card each month.What features should William especially look for in a credit card?

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. -[The Wage Earner Plan | Straight bankruptcy] involves some type of debt restructuring.

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. -A home equity line of credit is one of the [most | least] expensive forms of consumer credit.

Due to the Credit Card Act of 2009,finance charges can no longer be calculated using the double-cycle billing approach.

All of the following are useful ways to build a strong credit rating except

Credit card statements must be sent out at least 21 days before the due date.

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