Question 1

Which of the following is not true of mobile commerce?

Accepted Answer

A) Some smart phones are equipped to make purchases. 
B) Consumers have shown increased interest in this concept. 
C) A credit card company may provide a sticker that attaches to the phone rather than a physical credit card. 
D) Apps can be used to quickly pay with a mobile phone. 
E) Little interest in this concept has been shown by retailers and finance companies. 
A) Some smart phones are equipped to make purchases. 
B) Consumers have shown increased interest in this concept. 
C) A credit card company may provide a sticker that attaches to the phone rather than a physical credit card. 
D) Apps can be used to quickly pay with a mobile phone. 
E) Little interest in this concept has been shown by retailers and finance companies.

Question 2

Karen Price is 55 years old,divorced,and has worked at her current job for five years.She is interested in looking at her credit report.Which of the following pieces of information should she find in this report?

Accepted Answer

A) The address of the house she lived in as a child 
B) A loan for furniture she paid off 12 years ago 
C) The outstanding balance on the Visa card she has today 
D) The names and addresses of her grown children 
E) The fact that she was late paying her electric bill 8 years ago 
A) The address of the house she lived in as a child 
B) A loan for furniture she paid off 12 years ago 
C) The outstanding balance on the Visa card she has today 
D) The names and addresses of her grown children 
E) The fact that she was late paying her electric bill 8 years ago

Question 3

Credit bureaus obtain data from which of the following?

Accepted Answer

A) Banks 
B) Finance companies 
C) Merchants 
D) Credit card companies 
E) All of these 
A) Banks 
B) Finance companies 
C) Merchants 
D) Credit card companies 
E) All of these

Question 4

One example of closed-end credit is:

Accepted Answer

A) a credit card issued by a department store. 
B) a credit card issued by VISA or MasterCard. 
C) the use of overdraft protection at a bank. 
D) the use of a Travel and Entertainment card. 
E) a mortgage loan. 
A) a credit card issued by a department store. 
B) a credit card issued by VISA or MasterCard. 
C) the use of overdraft protection at a bank. 
D) the use of a Travel and Entertainment card. 
E) a mortgage loan.

Question 5

Which federal consumer credit law limits a cardholder's liability for unauthorized use of a card to $50?

Accepted Answer

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

Question 6

If you have incorrect information in your credit file:

Accepted Answer

A) you can't really do much about it. 
B) you have no legal remedies. 
C) credit bureaus are not required to change it. 
D) there are legal remedies available to you. 
E) don't worry because it will not affect your ability to borrow money. 
A) you can't really do much about it. 
B) you have no legal remedies. 
C) credit bureaus are not required to change it. 
D) there are legal remedies available to you. 
E) don't worry because it will not affect your ability to borrow money.

Question 7

Consumer credit is based on trust in people's ability and willingness to pay bills when due.

Accepted Answer

A) True 
 B)False

Question 8

How can you protect yourself against credit card fraud?

Accepted Answer

Here are the ways to protect yourself fr

Question 9

If you think you have been discriminated against by consumer reporting agencies or creditors,you should file a complaint with which government agency?

Accepted Answer

A) Federal Reserve Board 
B) Federal Deposit Insurance Corporation 
C) Consumer Financial Protection Bureau 
D) Office of the Comptroller of the Currency 
E) National Credit Union Administration 
A) Federal Reserve Board 
B) Federal Deposit Insurance Corporation 
C) Consumer Financial Protection Bureau 
D) Office of the Comptroller of the Currency 
E) National Credit Union Administration

Question 10

Which federal credit law sets the procedure for promptly correcting billing mistakes?

Accepted Answer

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

Question 11

Brian Porter's net worth is $120,000,excluding his home.His liabilities of $54,000 include all of his credit card balances and the balance due on his auto loan and home improvement loan.His townhouse has a market value of $220,000 and he owes $190,000 to his mortgage company.What is Brian's debt-to-equity ratio?

Accepted Answer

A) 0.65 
B) 0.74 
C) 0.45 
D) 0.35 
E) 0.28 
A) 0.65 
B) 0.74 
C) 0.45 
D) 0.35 
E) 0.28

Question 12

What should you do when you shop online using your credit card?

Accepted Answer

A) Delete immediately all records of your transactions 
B) Use a secure browser 
C) Give out your private information to anyone who requests it online 
D) Make sure to open and download all files sent you by strangers 
E) Give your password to anyone who requests it 
A) Delete immediately all records of your transactions 
B) Use a secure browser 
C) Give out your private information to anyone who requests it online 
D) Make sure to open and download all files sent you by strangers 
E) Give your password to anyone who requests it

Question 13

A home equity loan is usually set up as a revolving line of credit,typically with a fixed interest rate.

Accepted Answer

A) True 
 B)False

Question 14

What would be the maximum limit for an individual's debt-to-equity ratio,excluding the home mortgage?

Accepted Answer

A) 0.50 
B) 0.33 
C) 1.00 
D) 2.00 
E) 2.25 
A) 0.50 
B) 0.33 
C) 1.00 
D) 2.00 
E) 2.25

Question 15

The smaller the debt-to-equity ratio,the riskier the situation is for lenders and borrowers.

Accepted Answer

A) True 
 B)False

Question 16

A credit arrangement that has no extra costs and no specific repayment plan is called:

Accepted Answer

A) installment sales credit. 
B) single lump-sum credit. 
C) line of credit. 
D) incidental credit. 
E) revolving check credit. 
A) installment sales credit. 
B) single lump-sum credit. 
C) line of credit. 
D) incidental credit. 
E) revolving check credit.

Question 17

Which one of the following agencies maintains data about the amount and terms of your credit and your paying habits?

Accepted Answer

A) Federal Reserve Bank in your district 
B) Consumer sentinel network 
C) Federal Trade Commission 
D) Public assistance office 
E) Credit bureau 
A) Federal Reserve Bank in your district 
B) Consumer sentinel network 
C) Federal Trade Commission 
D) Public assistance office 
E) Credit bureau

Question 18

Which of the following is most likely not a valid reason for using credit?

Accepted Answer

A) Borrowing for an emergency stay in a hospital 
B) Borrowing to purchase a car so that a homemaker can return to the workforce 
C) Borrowing to buy a printer for your home office now because you know it will be twice as expensive later 
D) Borrowing to pay for your expensive dinner and movie every week 
E) Borrowing to pay for a college education 
A) Borrowing for an emergency stay in a hospital 
B) Borrowing to purchase a car so that a homemaker can return to the workforce 
C) Borrowing to buy a printer for your home office now because you know it will be twice as expensive later 
D) Borrowing to pay for your expensive dinner and movie every week 
E) Borrowing to pay for a college education

Question 19

The accuracy of credit reports has worsened recently.

Accepted Answer

A) True 
 B)False

Question 20

Jennifer Gardner purchases a sofa,love seat and reclining chair for her family room.She made a down payment and will make payments of $65 per month for the next twenty-four months.What type of credit did Jennifer use?

Accepted Answer

A) Installment sales credit 
B) Installment cash credit 
C) Single lump-sum credit 
D) Revolving check credit 
E) Open-end credit 
A) Installment sales credit 
B) Installment cash credit 
C) Single lump-sum credit 
D) Revolving check credit 
E) Open-end credit

Which of the following is not true of mobile commerce?

Karen Price is 55 years old,divorced,and has worked at her current job for five years.She is interested in looking at her credit report.Which of the following pieces of information should she find in this report?

Credit bureaus obtain data from which of the following?

One example of closed-end credit is:

Which federal consumer credit law limits a cardholder's liability for unauthorized use of a card to $50?

If you have incorrect information in your credit file:

Consumer credit is based on trust in people's ability and willingness to pay bills when due.

How can you protect yourself against credit card fraud?

If you think you have been discriminated against by consumer reporting agencies or creditors,you should file a complaint with which government agency?

Which federal credit law sets the procedure for promptly correcting billing mistakes?

What should you do when you shop online using your credit card?

A home equity loan is usually set up as a revolving line of credit,typically with a fixed interest rate.

What would be the maximum limit for an individual's debt-to-equity ratio,excluding the home mortgage?

The smaller the debt-to-equity ratio,the riskier the situation is for lenders and borrowers.

A credit arrangement that has no extra costs and no specific repayment plan is called:

Which one of the following agencies maintains data about the amount and terms of your credit and your paying habits?

Which of the following is most likely not a valid reason for using credit?

The accuracy of credit reports has worsened recently.

Jennifer Gardner purchases a sofa,love seat and reclining chair for her family room.She made a down payment and will make payments of $65 per month for the next twenty-four months.What type of credit did Jennifer use?

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

Which of the following is not true of mobile commerce?

Karen Price is 55 years old,divorced,and has worked at her current job for five years.She is interested in looking at her credit report.Which of the following pieces of information should she find in this report?

Credit bureaus obtain data from which of the following?

One example of closed-end credit is:

Which federal consumer credit law limits a cardholder's liability for unauthorized use of a card to $50?

If you have incorrect information in your credit file:

Consumer credit is based on trust in people's ability and willingness to pay bills when due.

How can you protect yourself against credit card fraud?

If you think you have been discriminated against by consumer reporting agencies or creditors,you should file a complaint with which government agency?

Which federal credit law sets the procedure for promptly correcting billing mistakes?

What should you do when you shop online using your credit card?

A home equity loan is usually set up as a revolving line of credit,typically with a fixed interest rate.

What would be the maximum limit for an individual's debt-to-equity ratio,excluding the home mortgage?

The smaller the debt-to-equity ratio,the riskier the situation is for lenders and borrowers.

A credit arrangement that has no extra costs and no specific repayment plan is called:

Which one of the following agencies maintains data about the amount and terms of your credit and your paying habits?

Which of the following is most likely not a valid reason for using credit?

The accuracy of credit reports has worsened recently.

Jennifer Gardner purchases a sofa,love seat and reclining chair for her family room.She made a down payment and will make payments of $65 per month for the next twenty-four months.What type of credit did Jennifer use?

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