Question 1

The required monthly payment on an open account will be the smaller of a minimum dollar amount or a specified percentage of the balance.

Accepted Answer

A) True 
 B)False

Question 2

Credit bureau files often include information such as political and religious affiliations in addition to financial information.

Accepted Answer

A) True 
 B)False

Question 3

The heaviest users of consumer debt are college students.

Accepted Answer

A) True 
 B)False

Question 4

Valid credit cards can legally be sent to you even though you have not applied for them.

Accepted Answer

A) True 
 B)False

Question 5

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 6

The majority of persons filing bankruptcy file Chapter 7 bankruptcy.

Accepted Answer

A) True 
 B)False

Question 7

Using credit is the ideal way to provide for financial emergencies.

Accepted Answer

A) True 
 B)False

Question 8

All Americans are entitled to receive a free copy of their credit report once a year from each of the "Big Three" credit reporting agencies.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

$875/$4,500 = 19.4%
They are approaching

Question 10

Lindsey has a job with monthly take-home pay of $3,500.Using the suggested maximum debt safety ratio,what maximum debt burden per month can she assume? (Show all work. )

Accepted Answer

The maximum debt safety ratio

Question 11

The quality of your credit rating is maintained by

Accepted Answer

A)  only using cash to make purchases. 
B)  making credit payments early. 
C)  seldom questioning billing errors. 
D)  using multiple credit cards. 
E)  meeting credit obligations as contracts require. 
A)  only using cash to make purchases. 
B)  making credit payments early. 
C)  seldom questioning billing errors. 
D)  using multiple credit cards. 
E)  meeting credit obligations as contracts require.

Question 12

A revolving charge account requires the customers to pay off the debt 10 to 20 days after the billing date with no interest expense.

Accepted Answer

A) True 
 B)False

Question 13

To establish creditworthiness you probably should first

Accepted Answer

A)  open savings and checking accounts. 
B)  use credit extensively. 
C)  arrange a small loan. 
D)  pay cash for all purchases. 
E)  arrange a large loan from close relatives. 
A)  open savings and checking accounts. 
B)  use credit extensively. 
C)  arrange a small loan. 
D)  pay cash for all purchases. 
E)  arrange a large loan from close relatives.

Question 14

For a fee,credit bureaus can provide credit scores for prospective borrowers.

Accepted Answer

A) True 
 B)False

Question 15

If your monthly before-tax income is $2,000 and your monthly take-home pay is $1,500,your maximum monthly consumer credit payments should not exceed

Accepted Answer

A)  $600. 
B)  $450. 
C)  $400. 
D)  $300. 
E)  $200. 
A)  $600. 
B)  $450. 
C)  $400. 
D)  $300. 
E)  $200.

Question 16

Credit reports on individual borrowers are issued by credit card issuers.

Accepted Answer

A) True 
 B)False

Question 17

Truth in Lending legislation requires lenders to tell you the APR on your loan.

Accepted Answer

A) True 
 B)False

Question 18

Rebate card work best for those who use the rebates and

Accepted Answer

A)  charge large amounts on the card. 
B)  pay the total card balance off monthly. 
C)  carry high monthly balances. 
D)  travel internationally 
E)  a and b 
A)  charge large amounts on the card. 
B)  pay the total card balance off monthly. 
C)  carry high monthly balances. 
D)  travel internationally 
E)  a and b

Question 19

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.
-During the past few years,the number of personal bankruptcies has [increased | decreased].

Accepted Answer

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

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.
-Most bank credit cards have interest rates that will [remain the same as long as you hold the card | be adjusted as interest rates in general rise and fall].

Accepted Answer

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

The required monthly payment on an open account will be the smaller of a minimum dollar amount or a specified percentage of the balance.

Credit bureau files often include information such as political and religious affiliations in addition to financial information.

The heaviest users of consumer debt are college students.

Valid credit cards can legally be sent to you even though you have not applied for them.

A problem with home equity loans is the

The majority of persons filing bankruptcy file Chapter 7 bankruptcy.

Using credit is the ideal way to provide for financial emergencies.

All Americans are entitled to receive a free copy of their credit report once a year from each of the "Big Three" credit reporting agencies.

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

Lindsey has a job with monthly take-home pay of $3,500.Using the suggested maximum debt safety ratio,what maximum debt burden per month can she assume? (Show all work. )

The quality of your credit rating is maintained by

A revolving charge account requires the customers to pay off the debt 10 to 20 days after the billing date with no interest expense.

To establish creditworthiness you probably should first

For a fee,credit bureaus can provide credit scores for prospective borrowers.

If your monthly before-tax income is $2,000 and your monthly take-home pay is $1,500,your maximum monthly consumer credit payments should not exceed

Credit reports on individual borrowers are issued by credit card issuers.

Truth in Lending legislation requires lenders to tell you the APR on your loan.

Rebate card work best for those who use the rebates and

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. -During the past few years,the number of personal bankruptcies has [increased | decreased].

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 required monthly payment on an open account will be the smaller of a minimum dollar amount or a specified percentage of the balance.

Credit bureau files often include information such as political and religious affiliations in addition to financial information.

The heaviest users of consumer debt are college students.

Valid credit cards can legally be sent to you even though you have not applied for them.

A problem with home equity loans is the

The majority of persons filing bankruptcy file Chapter 7 bankruptcy.

Using credit is the ideal way to provide for financial emergencies.

All Americans are entitled to receive a free copy of their credit report once a year from each of the "Big Three" credit reporting agencies.

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

Lindsey has a job with monthly take-home pay of $3,500.Using the suggested maximum debt safety ratio,what maximum debt burden per month can she assume? (Show all work. )

The quality of your credit rating is maintained by

A revolving charge account requires the customers to pay off the debt 10 to 20 days after the billing date with no interest expense.

To establish creditworthiness you probably should first

For a fee,credit bureaus can provide credit scores for prospective borrowers.

If your monthly before-tax income is $2,000 and your monthly take-home pay is $1,500,your maximum monthly consumer credit payments should not exceed

Credit reports on individual borrowers are issued by credit card issuers.

Truth in Lending legislation requires lenders to tell you the APR on your loan.

Rebate card work best for those who use the rebates and

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. -During the past few years,the number of personal bankruptcies has [increased | decreased].

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