Question 1

____ is a benefit of borrowing.

Accepted Answer

A)  The ability to buy expensive goods while spreading the payments over time 
B)  Providing payments that fit into a budget 
C)  Having a permanent record of transactions 
D)  Being able to purchase goods and services when checks are not acceptable 
E)  All of these are benefits. 
A)  The ability to buy expensive goods while spreading the payments over time 
B)  Providing payments that fit into a budget 
C)  Having a permanent record of transactions 
D)  Being able to purchase goods and services when checks are not acceptable 
E)  All of these are benefits.

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

Accepted Answer

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

Question 3

Clare's gross salary is $36,000 annually and her after-tax income is $28,800.What is Clare's maximum recommended monthly consumer credit payment?

Accepted Answer

A)  $600. 
B)  $480. 
C)  $450. 
D)  $360. 
E)  $200. 
A)  $600. 
B)  $480. 
C)  $450. 
D)  $360. 
E)  $200.

Question 4

It is recommended that women maintain credit in their own name rather than solely with their husbands.To do this,a woman should

Accepted Answer

A)  use a consistent,legal name rather than Mrs.____. 
B)  notify the credit bureau of a name change,if any. 
C)  notify the credit bureau that she wants to maintain a separate credit file. 
D)  make sure credit information is reported in her name as well as her husband's. 
E)  all of the above. 
A)  use a consistent,legal name rather than Mrs.____. 
B)  notify the credit bureau of a name change,if any. 
C)  notify the credit bureau that she wants to maintain a separate credit file. 
D)  make sure credit information is reported in her name as well as her husband's. 
E)  all of the above.

Question 5

Chapter 7 bankruptcies remain in your credit file for 7 years.

Accepted Answer

A) True 
 B)False

Question 6

Russ and Lois have a home valued at $96,000 and an outstanding mortgage of $60,000.If their lender is willing to provide a home equity loan of up to 75% of market value,how much could they borrow using a home equity loan?

Accepted Answer

A)  $ 0 
B)  $12,000 
C)  $27,000 
D)  $28,000 
E)  $36,000 
A)  $ 0 
B)  $12,000 
C)  $27,000 
D)  $28,000 
E)  $36,000

Question 7

Personal insolvency can be legally satisfied by

Accepted Answer

A)  Chapter 13 bankruptcy. 
B)  relinquishing all credit cards. 
C)  Chapter 7 bankruptcy. 
D)  b and c above. 
E)  a and c above. 
A)  Chapter 13 bankruptcy. 
B)  relinquishing all credit cards. 
C)  Chapter 7 bankruptcy. 
D)  b and c above. 
E)  a and c above.

Question 8

Chapter 20 bankruptcy combines characteristics of both Chapters 7 and 13.

Accepted Answer

A) True 
 B)False

Question 9

Connie lost her wallet that contained a bank debit card.What is the maximum amount Connie would be responsible for if someone uses her debit card before she can report it missing?

Accepted Answer

A)  $ 50. 
B)  $ 100. 
C)  $ 500. 
D)  $1,000. 
E)  The entire balance. 
A)  $ 50. 
B)  $ 100. 
C)  $ 500. 
D)  $1,000. 
E)  The entire balance.

Question 10

Having a checking account tells a creditor that you have some experience in managing your own funds.

Accepted Answer

A) True 
 B)False

Question 11

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.
-An improper use of extended credit would be to buy a [car | vacation].

Accepted Answer

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

Question 12

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.
-Using [credit | savings] to handle financial emergencies is the recommended choice.

Accepted Answer

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

Question 13

A debt safety ratio of 25% might be a signal of financial trouble ahead.

Accepted Answer

A) True 
 B)False

Question 14

Identity theft is a growing problem that could damage your credit rating.

Accepted Answer

A) True 
 B)False

Question 15

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 16

For someone with a good credit rating,lenders will typically lend up to 100% of equity in a home using a home equity credit line.

Accepted Answer

A) True 
 B)False

Question 17

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.
-Your chances of being approved for a loan [increase | decrease] the higher your credit score.

Accepted Answer

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

Question 18

Individuals with better credit ratings usually can secure higher credit limits.

Accepted Answer

A) True 
 B)False

Question 19

Both the level on consumer debt and the number of bankruptcies filed have increased markedly over the past 30 years.

Accepted Answer

A) True 
 B)False

Question 20

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.
-One condition of a secured credit card is that the holder must [pay a higher rate of interest | deposit an amount equal to the credit line in a savings account].

Accepted Answer

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

____ is a benefit of borrowing.

Clare's gross salary is $36,000 annually and her after-tax income is $28,800.What is Clare's maximum recommended monthly consumer credit payment?

It is recommended that women maintain credit in their own name rather than solely with their husbands.To do this,a woman should

Chapter 7 bankruptcies remain in your credit file for 7 years.

Russ and Lois have a home valued at $96,000 and an outstanding mortgage of $60,000.If their lender is willing to provide a home equity loan of up to 75% of market value,how much could they borrow using a home equity loan?

Personal insolvency can be legally satisfied by

Chapter 20 bankruptcy combines characteristics of both Chapters 7 and 13.

Connie lost her wallet that contained a bank debit card.What is the maximum amount Connie would be responsible for if someone uses her debit card before she can report it missing?

Having a checking account tells a creditor that you have some experience in managing your own funds.

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. -An improper use of extended credit would be to buy a [car | vacation].

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. -Using [credit | savings] to handle financial emergencies is the recommended choice.

A debt safety ratio of 25% might be a signal of financial trouble ahead.

Identity theft is a growing problem that could damage your credit rating.

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

For someone with a good credit rating,lenders will typically lend up to 100% of equity in a home using a home equity credit line.

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. -Your chances of being approved for a loan [increase | decrease] the higher your credit score.

Individuals with better credit ratings usually can secure higher credit limits.

Both the level on consumer debt and the number of bankruptcies filed have increased markedly over the past 30 years.

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

____ is a benefit of borrowing.

Clare's gross salary is $36,000 annually and her after-tax income is $28,800.What is Clare's maximum recommended monthly consumer credit payment?

It is recommended that women maintain credit in their own name rather than solely with their husbands.To do this,a woman should

Chapter 7 bankruptcies remain in your credit file for 7 years.

Russ and Lois have a home valued at $96,000 and an outstanding mortgage of $60,000.If their lender is willing to provide a home equity loan of up to 75% of market value,how much could they borrow using a home equity loan?

Personal insolvency can be legally satisfied by

Chapter 20 bankruptcy combines characteristics of both Chapters 7 and 13.

Connie lost her wallet that contained a bank debit card.What is the maximum amount Connie would be responsible for if someone uses her debit card before she can report it missing?

Having a checking account tells a creditor that you have some experience in managing your own funds.

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. -An improper use of extended credit would be to buy a [car | vacation].

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. -Using [credit | savings] to handle financial emergencies is the recommended choice.

A debt safety ratio of 25% might be a signal of financial trouble ahead.

Identity theft is a growing problem that could damage your credit rating.

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

For someone with a good credit rating,lenders will typically lend up to 100% of equity in a home using a home equity credit line.

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. -Your chances of being approved for a loan [increase | decrease] the higher your credit score.

Individuals with better credit ratings usually can secure higher credit limits.

Both the level on consumer debt and the number of bankruptcies filed have increased markedly over the past 30 years.

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