Question 1

Bank credit card purchases always begin accruing interest charges immediately.

Accepted Answer

A) True 
 B)False

Question 2

The decline in housing prices made it harder for households to refinance their mortgages.

Accepted Answer

A) True 
 B)False

Question 3

The majority of reduction in consumer indebtedness is due to home and consumer loan defaults.

Accepted Answer

A) True 
 B)False

Question 4

Unsecured lines of credit provide tax advantages if you itemize deductions.

Accepted Answer

A) True 
 B)False

Question 5

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 ahead of scheduled time. 
E)  discuss 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 ahead of scheduled time. 
E)  discuss with the lender if you foresee difficulty in making a payment.

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.
-The decline in housing prices made it [harder | easier] for households to refinance their mortgages.

Accepted Answer

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

Question 7

Interest will usually begin to accrue immediately when you use a bank credit card to:

Accepted Answer

A)  make purchases. 
B)  send payments. 
C)  compute finance charges. 
D)  get cash advances. 
E)  all of these 
A)  make purchases. 
B)  send payments. 
C)  compute finance charges. 
D)  get cash advances. 
E)  all of these

Question 8

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 person who pays his credit balance off every month should look for a credit card with a [long | short] grace period.

Accepted Answer

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

Question 9

The grace period on a credit card starts on the billing date and ends on the date the lender should receive the payment.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

$875/$4,500 = 19.44%
They are approachin

Question 11

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 [...

Question 12

A credit limit refers to the maximum amount the cardholder can owe the issuer at any point in time.

Accepted Answer

A) True 
 B)False

Question 13

If you initiated the telephone call,it is okay to give your credit card account number when ordering/purchasing from major catalog houses,airlines,hotels,and so on.

Accepted Answer

A) True 
 B)False

Question 14

Theresa is a bit of a spendthrift.She has trouble saying no when it comes to buying things.Which of the following cards would keep her out of debt?

Accepted Answer

A)  Debit 
B)  Credit 
C)  Affinity 
D)  Rebate 
E)  Prestige 
A)  Debit 
B)  Credit 
C)  Affinity 
D)  Rebate 
E)  Prestige

Question 15

Nearly all credit cards have annual fees.

Accepted Answer

A) True 
 B)False

Question 16

A problem with home equity loans is the:

Accepted Answer

A)  high rate of interest on these loans. 
B)  difficulty in qualifying for these loans. 
C)  short-term nature of these loans. 
D)  temptation to spread payments over a long term. 
E)  tax disadvantages of these loans. 
A)  high rate of interest on these loans. 
B)  difficulty in qualifying for these loans. 
C)  short-term nature of these loans. 
D)  temptation to spread payments over a long term. 
E)  tax disadvantages of these loans.

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

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 19

Interest rates on _____ are lower than on any other form of consumer credit.

Accepted Answer

A)  travel and entertainment cards 
B)  debit cards 
C)  credit cards 
D)  home equity loans 
E)  unsecured personal credit 
A)  travel and entertainment cards 
B)  debit cards 
C)  credit cards 
D)  home equity loans 
E)  unsecured personal credit

Question 20

A debt safety ratio of 5% would generally be a signal of financial trouble ahead.

Accepted Answer

A) True 
 B)False

Bank credit card purchases always begin accruing interest charges immediately.

The decline in housing prices made it harder for households to refinance their mortgages.

The majority of reduction in consumer indebtedness is due to home and consumer loan defaults.

Unsecured lines of credit provide tax advantages if you itemize deductions.

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

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 decline in housing prices made it [harder | easier] for households to refinance their mortgages.

Interest will usually begin to accrue immediately when you use a bank credit card to:

The grace period on a credit card starts on the billing date and ends on the date the lender should receive the payment.

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

A credit limit refers to the maximum amount the cardholder can owe the issuer at any point in time.

If you initiated the telephone call,it is okay to give your credit card account number when ordering/purchasing from major catalog houses,airlines,hotels,and so on.

Theresa is a bit of a spendthrift.She has trouble saying no when it comes to buying things.Which of the following cards would keep her out of debt?

Nearly all credit cards have annual fees.

A problem with home equity loans is the:

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

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

Interest rates on _____ are lower than on any other form of consumer credit.

A debt safety ratio of 5% would generally be a signal of financial trouble ahead.

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

Bank credit card purchases always begin accruing interest charges immediately.

The decline in housing prices made it harder for households to refinance their mortgages.

The majority of reduction in consumer indebtedness is due to home and consumer loan defaults.

Unsecured lines of credit provide tax advantages if you itemize deductions.

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

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 decline in housing prices made it [harder | easier] for households to refinance their mortgages.

Interest will usually begin to accrue immediately when you use a bank credit card to:

The grace period on a credit card starts on the billing date and ends on the date the lender should receive the payment.

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

A credit limit refers to the maximum amount the cardholder can owe the issuer at any point in time.

If you initiated the telephone call,it is okay to give your credit card account number when ordering/purchasing from major catalog houses,airlines,hotels,and so on.

Theresa is a bit of a spendthrift.She has trouble saying no when it comes to buying things.Which of the following cards would keep her out of debt?

Nearly all credit cards have annual fees.

A problem with home equity loans is the:

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

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

Interest rates on _____ are lower than on any other form of consumer credit.

A debt safety ratio of 5% would generally be a signal of financial trouble ahead.

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