Question 1

If you are denied credit,your first step should be to:

Accepted Answer

A) increase your income and decrease your spending. 
B) reapply for credit. 
C) hire an attorney and file a suit against the creditor. 
D) check your credit file at the credit bureau. 
E) sue the credit bureau that provided the negative information. 
A) increase your income and decrease your spending. 
B) reapply for credit. 
C) hire an attorney and file a suit against the creditor. 
D) check your credit file at the credit bureau. 
E) sue the credit bureau that provided the negative information.

Question 2

The Fair Credit Billing Act sets the procedures for promptly correcting billing mistakes/errors.

Accepted Answer

A) True 
 B)False

Question 3

Consumer credit:

Accepted Answer

A) is currently a privilege of the affluent. 
B) dates back to colonial times. 
C) currently carries no finance charge. 
D) is not a major force in our economy. 
E) use has been declining in recent years. 
A) is currently a privilege of the affluent. 
B) dates back to colonial times. 
C) currently carries no finance charge. 
D) is not a major force in our economy. 
E) use has been declining in recent years.

Question 4

Department stores and gasoline companies are good places to obtain your first credit card.

Accepted Answer

A) True 
 B)False

Question 5

Paul Carter is applying for a loan from a bank.The bank is concerned because Paul is an airline pilot for United Airlines.The bank thinks that Paul may be laid off in the near future.Which one of the 5 Cs of credit is the bank concerned with?

Accepted Answer

A) Character 
B) Capacity 
C) Capital 
D) Collateral 
E) Conditions 
A) Character 
B) Capacity 
C) Capital 
D) Collateral 
E) Conditions

Question 6

Revolving check credit is a:

Accepted Answer

A) credit arrangement that has no extra costs. 
B) prearranged loan for a specified amount that you can use by writing a special check. 
C) credit arrangement that has no specific repayment plan. 
D) synonym for installment cash credit. 
E) synonym for single lump-sum credit. 
A) credit arrangement that has no extra costs. 
B) prearranged loan for a specified amount that you can use by writing a special check. 
C) credit arrangement that has no specific repayment plan. 
D) synonym for installment cash credit. 
E) synonym for single lump-sum credit.

Question 7

Which one of the following is a disadvantage of using credit?

Accepted Answer

A) Receiving advance notice of sales 
B) Temptation to overspend 
C) Avoiding the necessity of carrying cash 
D) Ease of returning merchandise 
E) Paying for several purchases with one monthly payment 
A) Receiving advance notice of sales 
B) Temptation to overspend 
C) Avoiding the necessity of carrying cash 
D) Ease of returning merchandise 
E) Paying for several purchases with one monthly payment

Question 8

The debt-to-equity ratio is:

Accepted Answer

A) calculated by dividing total liabilities by net worth. 
B) calculated by dividing monthly debt payments by net monthly income. 
C) determined by dividing your assets by your liabilities. 
D) a useless ratio for determining your credit capacity. 
E) rarely used by creditors in determining credit worthiness. 
A) calculated by dividing total liabilities by net worth. 
B) calculated by dividing monthly debt payments by net monthly income. 
C) determined by dividing your assets by your liabilities. 
D) a useless ratio for determining your credit capacity. 
E) rarely used by creditors in determining credit worthiness.

Question 9

In determining your credit capacity,you first provide for basic necessities within your budget,such as:

Accepted Answer

A) furniture. 
B) home furnishings. 
C) mortgage or rent. 
D) automobile. 
E) durable goods. 
A) furniture. 
B) home furnishings. 
C) mortgage or rent. 
D) automobile. 
E) durable goods.

Question 10

Which federal consumer credit law places the maximum cost of a credit report at $8?

Accepted Answer

A) Consumer Credit Reporting Reform Act 
B) Fair and Accurate Credit Transactions Act 
C) Fair Debt Collection Practices Act 
D) Fair Credit Billing Act 
E) Truth in Lending Act 
A) Consumer Credit Reporting Reform Act 
B) Fair and Accurate Credit Transactions Act 
C) Fair Debt Collection Practices Act 
D) Fair Credit Billing Act 
E) Truth in Lending Act

Question 11

Which of the following federal consumer credit laws requires creditors to promptly credit customers' accounts and to return overpayments if requested?

Accepted Answer

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

Question 12

"Shopaholics" and young adults are most vulnerable to misusing credit.

Accepted Answer

A) True 
 B)False

Question 13

The credit bureau cannot charge you a fee for a copy of your credit report if you request it within ________ days of being denied credit based on the information in the credit report.

Accepted Answer

A) 10 
B) 20 
C) 30 
D) 40 
E) 60 
A) 10 
B) 20 
C) 30 
D) 40 
E) 60

Question 14

Approximately how many credit card users would be classified as "convenience users" who generally pay off their balances in full each month?

Accepted Answer

A) 20% 
B) 33% 
C) 45% 
D) 50% 
E) 70% 
A) 20% 
B) 33% 
C) 45% 
D) 50% 
E) 70%

Question 15

Most of the information in your credit file may be reported for only seven years.However,if you have declared personal bankruptcy,then this fact may be reported for 10 years.

Accepted Answer

A) True 
 B)False

Question 16

If your credit application is denied,you:

Accepted Answer

A) should sue the credit rating agency. 
B) should file a complaint against the merchant. 
C) have no legal right to know why. 
D) are entitled to know the specific reason you were denied credit. 
E) can reapply for credit after six months. 
A) should sue the credit rating agency. 
B) should file a complaint against the merchant. 
C) have no legal right to know why. 
D) are entitled to know the specific reason you were denied credit. 
E) can reapply for credit after six months.

Question 17

Which of the following is a prearranged loan for a specified amount that you can use by writing a special check?

Accepted Answer

A) Incidental credit 
B) Closed-end credit 
C) A bank line of credit 
D) Installment sales credit 
E) Overdraft protection 
A) Incidental credit 
B) Closed-end credit 
C) A bank line of credit 
D) Installment sales credit 
E) Overdraft protection

Question 18

Which one of the following is important to do to help avoid credit card fraud?

Accepted Answer

A) If you do not receive your billing statement,notify the company immediately 
B) Give out your credit card number over the phone 
C) Write your credit card number on the outside of envelopes 
D) Leave your credit card lying around anywhere 
E) If your billing statement is incorrect,ignore it 
A) If you do not receive your billing statement,notify the company immediately 
B) Give out your credit card number over the phone 
C) Write your credit card number on the outside of envelopes 
D) Leave your credit card lying around anywhere 
E) If your billing statement is incorrect,ignore it

Question 19

The baby boom generation currently represents about 30 percent of the population but holds nearly ________ percent of the outstanding debt.

Accepted Answer

A) 80 
B) 70 
C) 60 
D) 50 
E) 40 
A) 80 
B) 70 
C) 60 
D) 50 
E) 40

Question 20

You may not be denied credit because you receive Social Security or public assistance.

Accepted Answer

A) True 
 B)False

If you are denied credit,your first step should be to:

The Fair Credit Billing Act sets the procedures for promptly correcting billing mistakes/errors.

Consumer credit:

Department stores and gasoline companies are good places to obtain your first credit card.

Paul Carter is applying for a loan from a bank.The bank is concerned because Paul is an airline pilot for United Airlines.The bank thinks that Paul may be laid off in the near future.Which one of the 5 Cs of credit is the bank concerned with?

Revolving check credit is a:

Which one of the following is a disadvantage of using credit?

The debt-to-equity ratio is:

In determining your credit capacity,you first provide for basic necessities within your budget,such as:

Which federal consumer credit law places the maximum cost of a credit report at $8?

Which of the following federal consumer credit laws requires creditors to promptly credit customers' accounts and to return overpayments if requested?

"Shopaholics" and young adults are most vulnerable to misusing credit.

The credit bureau cannot charge you a fee for a copy of your credit report if you request it within ________ days of being denied credit based on the information in the credit report.

Approximately how many credit card users would be classified as "convenience users" who generally pay off their balances in full each month?

Most of the information in your credit file may be reported for only seven years.However,if you have declared personal bankruptcy,then this fact may be reported for 10 years.

If your credit application is denied,you:

Which of the following is a prearranged loan for a specified amount that you can use by writing a special check?

Which one of the following is important to do to help avoid credit card fraud?

The baby boom generation currently represents about 30 percent of the population but holds nearly ________ percent of the outstanding debt.

You may not be denied credit because you receive Social Security or public assistance.

Personal Finance Basics and the Time Value of Money

Financial Aspects of Career Planning

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

Financial Services: Savings Plans and Payment Accounts

Choosing a Source of Credit: the Costs of Credit Alternatives

Consumer Purchasing Strategies and Legal Protection

The Housing Decision: Factors and Finances

Property and Motor Vehicle Insurance

Health,disability,and Long-Term Care Insurance

Life Insurance

Investing Fundamentals

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Investing in Real Estate and Other Investment Alternatives

Starting Early: Retirement Planning

Estate Planning

Filters

Exam 6: Introduction to Consumer Credit

If you are denied credit,your first step should be to:

The Fair Credit Billing Act sets the procedures for promptly correcting billing mistakes/errors.

Consumer credit:

Department stores and gasoline companies are good places to obtain your first credit card.

Paul Carter is applying for a loan from a bank.The bank is concerned because Paul is an airline pilot for United Airlines.The bank thinks that Paul may be laid off in the near future.Which one of the 5 Cs of credit is the bank concerned with?

Revolving check credit is a:

Which one of the following is a disadvantage of using credit?

The debt-to-equity ratio is:

In determining your credit capacity,you first provide for basic necessities within your budget,such as:

Which federal consumer credit law places the maximum cost of a credit report at $8?

Which of the following federal consumer credit laws requires creditors to promptly credit customers' accounts and to return overpayments if requested?

"Shopaholics" and young adults are most vulnerable to misusing credit.

The credit bureau cannot charge you a fee for a copy of your credit report if you request it within ________ days of being denied credit based on the information in the credit report.

Approximately how many credit card users would be classified as "convenience users" who generally pay off their balances in full each month?

Most of the information in your credit file may be reported for only seven years.However,if you have declared personal bankruptcy,then this fact may be reported for 10 years.

If your credit application is denied,you:

Which of the following is a prearranged loan for a specified amount that you can use by writing a special check?

Which one of the following is important to do to help avoid credit card fraud?

The baby boom generation currently represents about 30 percent of the population but holds nearly ________ percent of the outstanding debt.

You may not be denied credit because you receive Social Security or public assistance.

Personal Finance Basics and the Time Value of Money

Financial Aspects of Career Planning

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

Financial Services: Savings Plans and Payment Accounts

Choosing a Source of Credit: the Costs of Credit Alternatives

Consumer Purchasing Strategies and Legal Protection

The Housing Decision: Factors and Finances

Property and Motor Vehicle Insurance

Health,disability,and Long-Term Care Insurance

Life Insurance

Investing Fundamentals

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Investing in Real Estate and Other Investment Alternatives

Starting Early: Retirement Planning

Estate Planning

Filters