Question 1

The qualifications to receive an American Express card are less stringent than for most bankcards.

Accepted Answer

A) True 
 B)False

Question 2

In order to establish her own credit history a woman should

Accepted Answer

A)  use her legal name. 
B)  use her husband's name. 
C)  file a credit report with her husband. 
D)  use a social title,such as "Mrs.Jennifer Winson". 
E)  none of these 
A)  use her legal name. 
B)  use her husband's name. 
C)  file a credit report with her husband. 
D)  use a social title,such as "Mrs.Jennifer Winson". 
E)  none of these

Question 3

Advantages of balance transfers can include lower interest rates and the convenience of consolidation.

Accepted Answer

A) True 
 B)False

Question 4

Two types of revolving account credit cards issued by banks are

Accepted Answer

A)  VISA and American Express cards. 
B)  Discover and MasterCard. 
C)  VISA and MasterCard. 
D)  Diners Club and American Express. 
E)  Discover and Diners Club. 
A)  VISA and American Express cards. 
B)  Discover and MasterCard. 
C)  VISA and MasterCard. 
D)  Diners Club and American Express. 
E)  Discover and Diners Club.

Question 5

Interest rates on credit cards tend to be lower than most other forms of consumer credit.

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

INSTRUCTIONS: 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 INSTRUCTIONS: Choose the word or phrase in...

Question 8

Secured credit cards require that the card holder puts up collateral in order to get the card.

Accepted Answer

A) True 
 B)False

Question 9

Credit bureaus

Accepted Answer

A)  will send you a free copy of your credit report whenever you ask. 
B)  may charge up to $20 for a copy of your credit report. 
C)  are required to correct errors only when a creditor asks them to. 
D)  All of these 
E)  None of these 
A)  will send you a free copy of your credit report whenever you ask. 
B)  may charge up to $20 for a copy of your credit report. 
C)  are required to correct errors only when a creditor asks them to. 
D)  All of these 
E)  None of these

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

Which of the following are true regarding credit scoring systems?

Accepted Answer

A)  Lower scores are better than higher scores. 
B)  Scoring systems are based on statistical studies. 
C)  Credit unions calculate and sell credit scores to lenders. 
D)  Females receive higher score than males. 
E)  All of the above. 
A)  Lower scores are better than higher scores. 
B)  Scoring systems are based on statistical studies. 
C)  Credit unions calculate and sell credit scores to lenders. 
D)  Females receive higher score than males. 
E)  All of the above.

Question 12

Most organizations that issue credit cards have basically the same qualifications for card applicants.

Accepted Answer

A) True 
 B)False

Question 13

The intent of a Wage Earner Plan is to eliminate most of the debtor's obligations.

Accepted Answer

A) True 
 B)False

Question 14

Prepaid cards are used to pay for things,with the purchase amount electronically deducted from the card.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

Being late on credit payments only 2-3 times per year pay label you a "late payer" in your credit file.

Accepted Answer

A) True 
 B)False

Question 17

A type of bankruptcy that allows one to wipe out his unsecured debt and restructure his secured debt is called

Accepted Answer

A)  the wage earner plan. 
B)  Chapter 11 bankruptcy. 
C)  Chapter 20 bankruptcy. 
D)  Chapter 7 bankruptcy. 
E)  Chapter 13 bankruptcy. 
A)  the wage earner plan. 
B)  Chapter 11 bankruptcy. 
C)  Chapter 20 bankruptcy. 
D)  Chapter 7 bankruptcy. 
E)  Chapter 13 bankruptcy.

Question 18

INSTRUCTIONS: 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.
-Interest paid on a [home equity line of credit | credit card] would be deductible if you itemize your deductions on your federal tax return.

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 19

Having arranged and fully repaid a small loan should help improve creditworthiness.

Accepted Answer

A) True 
 B)False

Question 20

According to the Federal Trade Commission,____ is now the number one consumer complaint

Accepted Answer

A)  credit card fraud 
B)  identity theft 
C)  stolen credit cards 
D)  Internet fraud 
E)  auto repair 
A)  credit card fraud 
B)  identity theft 
C)  stolen credit cards 
D)  Internet fraud 
E)  auto repair

The qualifications to receive an American Express card are less stringent than for most bankcards.

In order to establish her own credit history a woman should

Advantages of balance transfers can include lower interest rates and the convenience of consolidation.

Two types of revolving account credit cards issued by banks are

Interest rates on credit cards tend to be lower than most other forms of consumer credit.

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

Secured credit cards require that the card holder puts up collateral in order to get the card.

Credit bureaus

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

Which of the following are true regarding credit scoring systems?

Most organizations that issue credit cards have basically the same qualifications for card applicants.

The intent of a Wage Earner Plan is to eliminate most of the debtor's obligations.

Prepaid cards are used to pay for things,with the purchase amount electronically deducted from the card.

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

Being late on credit payments only 2-3 times per year pay label you a "late payer" in your credit file.

A type of bankruptcy that allows one to wipe out his unsecured debt and restructure his secured debt is called

Having arranged and fully repaid a small loan should help improve creditworthiness.

According to the Federal Trade Commission,____ is now the number one consumer complaint

Understanding the Financial Planning Process

Your Financial Statements and Plans

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 qualifications to receive an American Express card are less stringent than for most bankcards.

In order to establish her own credit history a woman should

Advantages of balance transfers can include lower interest rates and the convenience of consolidation.

Two types of revolving account credit cards issued by banks are

Interest rates on credit cards tend to be lower than most other forms of consumer credit.

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

Secured credit cards require that the card holder puts up collateral in order to get the card.

Credit bureaus

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

Which of the following are true regarding credit scoring systems?

Most organizations that issue credit cards have basically the same qualifications for card applicants.

The intent of a Wage Earner Plan is to eliminate most of the debtor's obligations.

Prepaid cards are used to pay for things,with the purchase amount electronically deducted from the card.

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

Being late on credit payments only 2-3 times per year pay label you a "late payer" in your credit file.

A type of bankruptcy that allows one to wipe out his unsecured debt and restructure his secured debt is called

Having arranged and fully repaid a small loan should help improve creditworthiness.

According to the Federal Trade Commission,____ is now the number one consumer complaint

Understanding the Financial Planning Process

Your Financial Statements and Plans

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