Exam 6: Using Credit

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. -Rebate cards are most useful for consumers who charge a lot and [maintain | do not maintain] large balances of their cards.

Both character and capacity are included in the 5 Cs of credit.

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 Chapter 7 bankruptcy can remain in your credit file for [4 | 7] years.

Debit cards are a form of credit that is very convenient to use.

Problems with credit cards often begin in college.

Credit cards with very low minimum balance requirements are in the consumer's best interest.

Bankruptcies can remain in your credit file for 10 years.

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. -If your credit card is stolen,the maximum amount you could be held responsible for is [$50 | $500].

All of the following are useful ways to build a strong credit rating except

Credit cards often have penalties for late payment and for exceeding credit limits.

Credit card users can often avoid finance charges entirely by paying their total balances by the stated due date.

Collateral (what you own)is one of the 5 Cs of credit.

Rebate credit cards work best for those who use the rebates,charge a lot,and do not carry high monthly balances.

The Wage Earner Planner requires debtors to give up most of their assets.

A monthly credit card statement need not include information about the

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. -Student credit cards usually [do | do not] require parental or guardian guarantees.

The purpose of a credit report is to evaluate the kind of risk you pose to the lender.

Bank credit card purchases always begin accruing interest charges immediately.

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. -Prestige credit cards usually offer you a higher credit limit and charge a higher [interest rate | annual fee].

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. -It is legal for a credit card issuer to send you a [credit card | credit card application] even if you haven't asked for one.