Question 1

The most common forms of open account credit are bank credit cards and retail charge cards.

Accepted Answer

A) True 
 B)False

Question 2

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 decision whether or not to grant you credit will be made by [individual creditors | the credit bureau].

Accepted Answer

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

Question 3

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 4

Cards that can be used to pay for selected items and the amount of the transaction is automatically subtracted from the card value are called ____ cards.

Accepted Answer

A)  debit 
B)  credit 
C)  affinity 
D)  prepaid 
E)  prestige 
A)  debit 
B)  credit 
C)  affinity 
D)  prepaid 
E)  prestige

Question 5

When paying for something with a check,don't give your ____ number.

Accepted Answer

A)  Social Security 
B)  credit card 
C)  drivers license 
D)  a and b 
E)  a,b,and c 
A)  Social Security 
B)  credit card 
C)  drivers license 
D)  a and b 
E)  a,b,and c

Question 6

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 first step to take if you are having credit difficulties would be to [talk to creditors | consult a credit counselor].

Accepted Answer

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

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.
-You are likely to have financial difficulty if your personal credit obligations exceed [15% | 20%] of your take home pay.

Accepted Answer

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

Question 8

The legislation written to eliminate discrimination between males and females in credit decisions is the

Accepted Answer

A)  Truth in Lending Act. 
B)  Consumer Credit Protection Act. 
C)  Fair Credit Billing Act. 
D)  Consumer Credit Reporting Reform Act. 
E)  Equal Credit Opportunity Act. 
A)  Truth in Lending Act. 
B)  Consumer Credit Protection Act. 
C)  Fair Credit Billing Act. 
D)  Consumer Credit Reporting Reform Act. 
E)  Equal Credit Opportunity Act.

Question 9

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.
-Nancy's take-home income is $3,000 per month,and she currently has $700 monthly consumer debt.According to the general rules of thumb,Nancy [is | is not] in a position to take on additional consumer debt.

Accepted Answer

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

Question 10

____ would be a proper use of credit.

Accepted Answer

A)  Purchase of a house 
B)  A financial emergency 
C)  Shopping convenience 
D)  Investing 
E)  All of these 
A)  Purchase of a house 
B)  A financial emergency 
C)  Shopping convenience 
D)  Investing 
E)  All of these

Question 11

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 12

Sheldon has a home valued at $108,000 and an outstanding mortgage of $70,000.If his lender is willing to provide a home equity loan of up to 80% of market value,how much could Sheldon borrow using a home equity loan?

Accepted Answer

A)  $86,400 
B)  $80,000 
C)  $38,000 
D)  $30,400 
E)  $16,400 
A)  $86,400 
B)  $80,000 
C)  $38,000 
D)  $30,400 
E)  $16,400

Question 13

You have a $926 balance on your credit card account.The minimum payment on your account is 2 percent of the latest balance or $20,whichever is greater.What will be the minimum payment this month?

Accepted Answer

$926 *.02 = $18.52
S

Question 14

The provision that credit reports must contain accurate,relevant,and current information is a part of

Accepted Answer

A)  The Truth in Lending Act. 
B)  The Consumer Credit Protection Act. 
C)  The Consumer Credit Reporting Reform Act. 
D)  The Fair Credit Billing Act. 
E)  The Equal Credit Opportunity Act. 
A)  The Truth in Lending Act. 
B)  The Consumer Credit Protection Act. 
C)  The Consumer Credit Reporting Reform Act. 
D)  The Fair Credit Billing Act. 
E)  The Equal Credit Opportunity Act.

Question 15

A Chapter 13 bankruptcy filing would result in the discharge of most of your debts.

Accepted Answer

A) True 
 B)False

Question 16

The Consumer Credit Reporting Reform Act gives you the right to secure a copy of your own credit bureau file.

Accepted Answer

A) True 
 B)False

Question 17

Interest will almost always 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 18

The most prestigious of credit cards is currently the

Accepted Answer

A)  VISA Classic. 
B)  Gold MasterCard. 
C)  Platinum American Express. 
D)  Green American Express. 
E)  Amex Blue. 
A)  VISA Classic. 
B)  Gold MasterCard. 
C)  Platinum American Express. 
D)  Green American Express. 
E)  Amex Blue.

Question 19

One should not use credit to purchase food,clothing,and other non-durables,even if it is only for convenience and the balance will be totally paid upon billing.

Accepted Answer

A) True 
 B)False

Question 20

Paying only the minimum payment each time on a credit card usually enables one to pay off the balance fairly quickly.

Accepted Answer

A) True 
 B)False

The most common forms of open account credit are bank credit cards and retail charge cards.

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

Cards that can be used to pay for selected items and the amount of the transaction is automatically subtracted from the card value are called ____ cards.

When paying for something with a check,don't give your ____ number.

The legislation written to eliminate discrimination between males and females in credit decisions is the

____ would be a proper use of credit.

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

Sheldon has a home valued at $108,000 and an outstanding mortgage of $70,000.If his lender is willing to provide a home equity loan of up to 80% of market value,how much could Sheldon borrow using a home equity loan?

You have a $926 balance on your credit card account.The minimum payment on your account is 2 percent of the latest balance or $20,whichever is greater.What will be the minimum payment this month?

The provision that credit reports must contain accurate,relevant,and current information is a part of

A Chapter 13 bankruptcy filing would result in the discharge of most of your debts.

The Consumer Credit Reporting Reform Act gives you the right to secure a copy of your own credit bureau file.

Interest will almost always begin to accrue immediately when you use a bank credit card to

The most prestigious of credit cards is currently the

One should not use credit to purchase food,clothing,and other non-durables,even if it is only for convenience and the balance will be totally paid upon billing.

Paying only the minimum payment each time on a credit card usually enables one to pay off the balance fairly quickly.

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

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Exam 6: Using Credit

The most common forms of open account credit are bank credit cards and retail charge cards.

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

Cards that can be used to pay for selected items and the amount of the transaction is automatically subtracted from the card value are called ____ cards.

When paying for something with a check,don't give your ____ number.

The legislation written to eliminate discrimination between males and females in credit decisions is the

____ would be a proper use of credit.

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

Sheldon has a home valued at $108,000 and an outstanding mortgage of $70,000.If his lender is willing to provide a home equity loan of up to 80% of market value,how much could Sheldon borrow using a home equity loan?

You have a $926 balance on your credit card account.The minimum payment on your account is 2 percent of the latest balance or $20,whichever is greater.What will be the minimum payment this month?

The provision that credit reports must contain accurate,relevant,and current information is a part of

A Chapter 13 bankruptcy filing would result in the discharge of most of your debts.

The Consumer Credit Reporting Reform Act gives you the right to secure a copy of your own credit bureau file.

Interest will almost always begin to accrue immediately when you use a bank credit card to

The most prestigious of credit cards is currently the

One should not use credit to purchase food,clothing,and other non-durables,even if it is only for convenience and the balance will be totally paid upon billing.

Paying only the minimum payment each time on a credit card usually enables one to pay off the balance fairly quickly.

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