Question 1

What is consumer credit? What are its advantages and disadvantages?

Accepted Answer

Answers will vary.
Consumer credit is th

Question 2

What are a few things to consider before you cosign a loan?

Accepted Answer

Here are a few things to consider befor

Question 3

In the 5 Cs of credit,capacity refers to the borrower's attitude toward his or her credit obligations.

Accepted Answer

A) True 
 B)False

Question 4

A lender requires a cosigner even when a borrower meets the lender's criteria for making a loan.

Accepted Answer

A) True 
 B)False

Question 5

A creditor may ignore your retirement income in rating your application.

Accepted Answer

A) True 
 B)False

Question 6

If your monthly net income is $1,250,what should be your maximum amount spent on credit payments?

Accepted Answer

A) $125 
B) $250 
C) $375 
D) $500 
E) $600 
A) $125 
B) $250 
C) $375 
D) $500 
E) $600

Question 7

Which federal law regulates the use of credit reports,requires the deletion of obsolete information,and gives consumers access to their file?

Accepted Answer

A) Truth in Lending Act of 1969 
B) Fair Credit Billing Act of 1975 
C) Equal Credit Opportunity Act of 1975 
D) Fair Credit Reporting Act of 1971 
E) Fair Debit Collection Practices Act of 1978 
A) Truth in Lending Act of 1969 
B) Fair Credit Billing Act of 1975 
C) Equal Credit Opportunity Act of 1975 
D) Fair Credit Reporting Act of 1971 
E) Fair Debit Collection Practices Act of 1978

Question 8

In the 5 Cs of credit,character refers to the borrower's attitude toward his or her credit obligations.

Accepted Answer

A) True 
 B)False

Question 9

What do creditors look for when you apply for credit?

Accepted Answer

Creditors determine credit wor

Question 10

What are the two basic types of credit? Give examples of both.

Accepted Answer

Two basic types of consumer credit are c

Question 11

Amy Farmer is getting a loan to buy a used car.The bank wants to know the trade-in value of the car she is purchasing.Which of the 5 Cs of credit is the bank examining?

Accepted Answer

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

Question 12

In the 5 Cs of credit,capacity refers to the borrower's financial ability to meet credit obligations.

Accepted Answer

A) True 
 B)False

Question 13

With closed-end credit,generally the seller holds the title to the merchandise until the payments have been completed.

Accepted Answer

A) True 
 B)False

Question 14

A term that refers to the borrower's assets or net worth is called:

Accepted Answer

A) capacity. 
B) character. 
C) capital. 
D) collateral. 
E) conditions. 
A) capacity. 
B) character. 
C) capital. 
D) collateral. 
E) conditions.

Question 15

Which federal consumer credit law prohibits creditors from requiring women to reapply for credit upon a change in marital status?

Accepted Answer

A) Fair Debt Collection Practices Act 
B) Fair Credit Billing Act 
C) Equal Credit Opportunity Act 
D) Fair Credit Reporting Act 
E) Truth in Lending Act 
A) Fair Debt Collection Practices Act 
B) Fair Credit Billing Act 
C) Equal Credit Opportunity Act 
D) Fair Credit Reporting Act 
E) Truth in Lending Act

Question 16

The Fair Credit Reporting Act,which regulates the use of credit reports,requires the deletion of obsolete information and gives consumers access to their files.

Accepted Answer

A) True 
 B)False

Question 17

Which federal consumer credit law requires "credit repair" companies to give consumers a written contract that can be canceled within three business days?

Accepted Answer

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

Question 18

If you cosign a loan,the creditor can collect this debt from you without first trying to collect from the borrower.

Accepted Answer

A) True 
 B)False

Question 19

Most of the information in your credit file may be reported for only ________ years.

Accepted Answer

A) 7 
B) 9 
C) 11 
D) 13 
E) 15 
A) 7 
B) 9 
C) 11 
D) 13 
E) 15

Question 20

Many banks extend a bank line of credit,which is also called:

Accepted Answer

A) revolving check credit. 
B) a box of credit. 
C) convenience credit. 
D) installment credit. 
E) single lump-sum credit. 
A) revolving check credit. 
B) a box of credit. 
C) convenience credit. 
D) installment credit. 
E) single lump-sum credit.

What is consumer credit? What are its advantages and disadvantages?

What are a few things to consider before you cosign a loan?

In the 5 Cs of credit,capacity refers to the borrower's attitude toward his or her credit obligations.

A lender requires a cosigner even when a borrower meets the lender's criteria for making a loan.

A creditor may ignore your retirement income in rating your application.

If your monthly net income is $1,250,what should be your maximum amount spent on credit payments?

Which federal law regulates the use of credit reports,requires the deletion of obsolete information,and gives consumers access to their file?

In the 5 Cs of credit,character refers to the borrower's attitude toward his or her credit obligations.

What do creditors look for when you apply for credit?

What are the two basic types of credit? Give examples of both.

Amy Farmer is getting a loan to buy a used car.The bank wants to know the trade-in value of the car she is purchasing.Which of the 5 Cs of credit is the bank examining?

In the 5 Cs of credit,capacity refers to the borrower's financial ability to meet credit obligations.

With closed-end credit,generally the seller holds the title to the merchandise until the payments have been completed.

A term that refers to the borrower's assets or net worth is called:

Which federal consumer credit law prohibits creditors from requiring women to reapply for credit upon a change in marital status?

The Fair Credit Reporting Act,which regulates the use of credit reports,requires the deletion of obsolete information and gives consumers access to their files.

Which federal consumer credit law requires "credit repair" companies to give consumers a written contract that can be canceled within three business days?

If you cosign a loan,the creditor can collect this debt from you without first trying to collect from the borrower.

Most of the information in your credit file may be reported for only ________ years.

Many banks extend a bank line of credit,which is also called:

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

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Exam 6: Introduction to Consumer Credit

What is consumer credit? What are its advantages and disadvantages?

What are a few things to consider before you cosign a loan?

In the 5 Cs of credit,capacity refers to the borrower's attitude toward his or her credit obligations.

A lender requires a cosigner even when a borrower meets the lender's criteria for making a loan.

A creditor may ignore your retirement income in rating your application.

If your monthly net income is $1,250,what should be your maximum amount spent on credit payments?

Which federal law regulates the use of credit reports,requires the deletion of obsolete information,and gives consumers access to their file?

In the 5 Cs of credit,character refers to the borrower's attitude toward his or her credit obligations.

What do creditors look for when you apply for credit?

What are the two basic types of credit? Give examples of both.

Amy Farmer is getting a loan to buy a used car.The bank wants to know the trade-in value of the car she is purchasing.Which of the 5 Cs of credit is the bank examining?

In the 5 Cs of credit,capacity refers to the borrower's financial ability to meet credit obligations.

With closed-end credit,generally the seller holds the title to the merchandise until the payments have been completed.

A term that refers to the borrower's assets or net worth is called:

Which federal consumer credit law prohibits creditors from requiring women to reapply for credit upon a change in marital status?

The Fair Credit Reporting Act,which regulates the use of credit reports,requires the deletion of obsolete information and gives consumers access to their files.

Which federal consumer credit law requires "credit repair" companies to give consumers a written contract that can be canceled within three business days?

If you cosign a loan,the creditor can collect this debt from you without first trying to collect from the borrower.

Most of the information in your credit file may be reported for only ________ years.

Many banks extend a bank line of credit,which is also called:

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