Question 1

Families who have a source of income and who want to retain their assets above the protected amount would select Chapter 13 rather than Chapter 7 bankruptcy.

Accepted Answer

A) True 
 B)False

Question 2

The most common forms of open account credit are travel and entertainment cards.

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

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

Question 5

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

Question 6

Using more than 20 percent of one's take-home income to pay off consumer debt is one of the signs that one may be headed for serious credit problems.

Accepted Answer

A) True 
 B)False

Question 7

One can and should check his credit bureau file regularly.

Accepted Answer

A) True 
 B)False

Question 8

The key to credit worthiness is to keep your debt safety ratio as high as possible.

Accepted Answer

A) True 
 B)False

Question 9

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 10

Credit card discrimination practices are regulated by

Accepted Answer

A)  Equal Credit Opportunity Act. 
B)  Truth in Lending Act. 
C)  Fair Credit Reporting Act. 
D)  Fair Credit Billing Act. 
E)  Usury laws in each state. 
A)  Equal Credit Opportunity Act. 
B)  Truth in Lending Act. 
C)  Fair Credit Reporting Act. 
D)  Fair Credit Billing Act. 
E)  Usury laws in each state.

Question 11

A woman's income can legally be discounted when she applies for credit.

Accepted Answer

A) True 
 B)False

Question 12

It is safe,and often required,to give your Social Security number as a form of identification when using a credit card.

Accepted Answer

A) True 
 B)False

Question 13

The two most popular bank credit cards are Discover and American Express.

Accepted Answer

A) True 
 B)False

Question 14

As a percent of take-home pay,monthly consumer credit payments should not exceed

Accepted Answer

A)  25%. 
B)  20%. 
C)  15%. 
D)  10%. 
E)  5%. 
A)  25%. 
B)  20%. 
C)  15%. 
D)  10%. 
E)  5%.

Question 15

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.
-Credit bureaus can keep adverse credit information in their files for [5 | 7] years.

Accepted Answer

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

Question 16

Chapter 7 bankruptcy will

Accepted Answer

A)  eliminate all financial obligations. 
B)  result in the loss of all one's assets. 
C)  stay on one's credit record up to 10 years. 
D)  a and c 
E)  a,b,and c 
A)  eliminate all financial obligations. 
B)  result in the loss of all one's assets. 
C)  stay on one's credit record up to 10 years. 
D)  a and c 
E)  a,b,and c

Question 17

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 18

The 5 Cs of Credit include all of the following except

Accepted Answer

A)  cash. 
B)  capital . 
C)  character. 
D)  collateral. 
E)  capacity. 
A)  cash. 
B)  capital . 
C)  character. 
D)  collateral. 
E)  capacity.

Question 19

Borderline credit risks would most likely receive

Accepted Answer

A)  delayed reconsideration for credit application. 
B)  a limited line of credit. 
C)  a negative credit rating. 
D)  credit only as applied for. 
E)  credit only in emergency situations. 
A)  delayed reconsideration for credit application. 
B)  a limited line of credit. 
C)  a negative credit rating. 
D)  credit only as applied for. 
E)  credit only in emergency situations.

Question 20

Open account credit is a form of credit extended to a consumer in advance of any transaction.

Accepted Answer

A) True 
 B)False

Families who have a source of income and who want to retain their assets above the protected amount would select Chapter 13 rather than Chapter 7 bankruptcy.

The most common forms of open account credit are travel and entertainment cards.

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

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

Using more than 20 percent of one's take-home income to pay off consumer debt is one of the signs that one may be headed for serious credit problems.

One can and should check his credit bureau file regularly.

The key to credit worthiness is to keep your debt safety ratio as high as possible.

It is not a good idea to use credit to

Credit card discrimination practices are regulated by

A woman's income can legally be discounted when she applies for credit.

It is safe,and often required,to give your Social Security number as a form of identification when using a credit card.

The two most popular bank credit cards are Discover and American Express.

As a percent of take-home pay,monthly consumer credit payments should not exceed

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. -Credit bureaus can keep adverse credit information in their files for [5 | 7] years.

Chapter 7 bankruptcy will

Open account credit is characterized by

The 5 Cs of Credit include all of the following except

Borderline credit risks would most likely receive

Open account credit is a form of credit extended to a consumer in advance of any transaction.

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

Families who have a source of income and who want to retain their assets above the protected amount would select Chapter 13 rather than Chapter 7 bankruptcy.

The most common forms of open account credit are travel and entertainment cards.

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

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

Using more than 20 percent of one's take-home income to pay off consumer debt is one of the signs that one may be headed for serious credit problems.

One can and should check his credit bureau file regularly.

The key to credit worthiness is to keep your debt safety ratio as high as possible.

It is not a good idea to use credit to

Credit card discrimination practices are regulated by

A woman's income can legally be discounted when she applies for credit.

It is safe,and often required,to give your Social Security number as a form of identification when using a credit card.

The two most popular bank credit cards are Discover and American Express.

As a percent of take-home pay,monthly consumer credit payments should not exceed

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. -Credit bureaus can keep adverse credit information in their files for [5 | 7] years.

Chapter 7 bankruptcy will

Open account credit is characterized by

The 5 Cs of Credit include all of the following except

Borderline credit risks would most likely receive

Open account credit is a form of credit extended to a consumer in advance of any transaction.

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