Question 1

One common type of closed-end credit is:

Accepted Answer

A) a line of credit. 
B) convenience credit. 
C) revolving credit. 
D) installment cash credit. 
E) bank card credit. 
A) a line of credit. 
B) convenience credit. 
C) revolving credit. 
D) installment cash credit. 
E) bank card credit.

Question 2

When imposters take your name,they are committing a crime.

Accepted Answer

A) True 
 B)False

Question 3

Perhaps the greatest disadvantage of using credit is the temptation to overspend.

Accepted Answer

A) True 
 B)False

Question 4

Robert Smith has monthly net income of $1,200.He has a house payment of $550 per month,a car loan with payments of $250 per month,a Visa card with payments of $40 per month,and a credit card with a local department store with payments of $58 per month.What is Robert's debt payments-to-income ratio?

Accepted Answer

A) 0% 
B) 8% 
C) 75% 
D) 29% 
E) 20% 
A) 0% 
B) 8% 
C) 75% 
D) 29% 
E) 20%

Question 5

The Fair Credit Billing Act has a provision in which a lender can threaten your credit rating while you are resolving a billing dispute.

Accepted Answer

A) True 
 B)False

Question 6

Installment sales credit is a:

Accepted Answer

A) direct loan of money for personal purposes. 
B) direct loan of money for home improvement. 
C) loan that allows you to receive merchandise such as large appliances or furniture. 
D) direct loan for vacation purposes. 
E) synonym for a single lump-sum credit. 
A) direct loan of money for personal purposes. 
B) direct loan of money for home improvement. 
C) loan that allows you to receive merchandise such as large appliances or furniture. 
D) direct loan for vacation purposes. 
E) synonym for a single lump-sum credit.

Question 7

What are the three most common types of closed-end credit?

Accepted Answer

The three most common types of

Question 8

Which federal consumer credit law prohibits credit discrimination based on sex and marital status?

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 9

Which one of the following would not be a good use of a home equity loan?

Accepted Answer

A) Paying for a college education 
B) Buying a new boat 
C) Putting a new roof on your house 
D) Paying medical bills 
E) Adding a deck on the back of your house 
A) Paying for a college education 
B) Buying a new boat 
C) Putting a new roof on your house 
D) Paying medical bills 
E) Adding a deck on the back of your house

Question 10

Installment cash credit is a direct loan of money for personal purposes,home improvements,or vacation expenses.

Accepted Answer

A) True 
 B)False

Question 11

The Consumer Financial Protection Bureau receives an average of how many complaints about the credit bureaus every year?

Accepted Answer

A) 5,000 
B) 25,000 
C) 36,000 
D) 42,000 
E) 50,000 
A) 5,000 
B) 25,000 
C) 36,000 
D) 42,000 
E) 50,000

Question 12

A home equity loan is based on the difference between the current market value of your home and the amount you still owe on your mortgage.

Accepted Answer

A) True 
 B)False

Question 13

The credit cardholders who pay off their balances in full each month are known as convenience users.

Accepted Answer

A) True 
 B)False

Question 14

Installment cash credit is a:

Accepted Answer

A) loan that must be repaid in total on a specified day. 
B) direct loan of money for personal purposes. 
C) loan that allows the consumer to receive merchandise,such as a refrigerator. 
D) down payment made on a purchase. 
E) synonym for single lump-sum credit. 
A) loan that must be repaid in total on a specified day. 
B) direct loan of money for personal purposes. 
C) loan that allows the consumer to receive merchandise,such as a refrigerator. 
D) down payment made on a purchase. 
E) synonym for single lump-sum credit.

Question 15

In the 5 Cs of credit,collateral is an asset that you pledge to a financial institution to obtain a loan.

Accepted Answer

A) True 
 B)False

Question 16

If you think that your bill is wrong,you should first:

Accepted Answer

A) contact the local credit bureau and inform it of the billing error. 
B) complain to the Better Business Bureau. 
C) contact your state consumer protection agency. 
D) call the creditor to discuss the error. 
E) contact your attorney to settle the matter. 
A) contact the local credit bureau and inform it of the billing error. 
B) complain to the Better Business Bureau. 
C) contact your state consumer protection agency. 
D) call the creditor to discuss the error. 
E) contact your attorney to settle the matter.

Question 17

The borrower's attitude toward his or her credit obligations is called:

Accepted Answer

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

Question 18

In the 5 Cs of credit,capital refers to your financial ability to meet credit obligations.

Accepted Answer

A) True 
 B)False

Question 19

If you have declared personal bankruptcy,then this fact may be reported by credit bureaus for ________ years.

Accepted Answer

A) 5 
B) 10 
C) 15 
D) 20 
E) 25 
A) 5 
B) 10 
C) 15 
D) 20 
E) 25

Question 20

Credit is an arrangement to receive cash,goods,or services now and pay for them in the future.

Accepted Answer

A) True 
 B)False

One common type of closed-end credit is:

When imposters take your name,they are committing a crime.

Perhaps the greatest disadvantage of using credit is the temptation to overspend.

Robert Smith has monthly net income of $1,200.He has a house payment of $550 per month,a car loan with payments of $250 per month,a Visa card with payments of $40 per month,and a credit card with a local department store with payments of $58 per month.What is Robert's debt payments-to-income ratio?

The Fair Credit Billing Act has a provision in which a lender can threaten your credit rating while you are resolving a billing dispute.

Installment sales credit is a:

What are the three most common types of closed-end credit?

Which federal consumer credit law prohibits credit discrimination based on sex and marital status?

Which one of the following would not be a good use of a home equity loan?

Installment cash credit is a direct loan of money for personal purposes,home improvements,or vacation expenses.

The Consumer Financial Protection Bureau receives an average of how many complaints about the credit bureaus every year?

A home equity loan is based on the difference between the current market value of your home and the amount you still owe on your mortgage.

The credit cardholders who pay off their balances in full each month are known as convenience users.

Installment cash credit is a:

In the 5 Cs of credit,collateral is an asset that you pledge to a financial institution to obtain a loan.

If you think that your bill is wrong,you should first:

The borrower's attitude toward his or her credit obligations is called:

In the 5 Cs of credit,capital refers to your financial ability to meet credit obligations.

If you have declared personal bankruptcy,then this fact may be reported by credit bureaus for ________ years.

Credit is an arrangement to receive cash,goods,or services now and pay for them in the future.

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

One common type of closed-end credit is:

When imposters take your name,they are committing a crime.

Perhaps the greatest disadvantage of using credit is the temptation to overspend.

Robert Smith has monthly net income of $1,200.He has a house payment of $550 per month,a car loan with payments of $250 per month,a Visa card with payments of $40 per month,and a credit card with a local department store with payments of $58 per month.What is Robert's debt payments-to-income ratio?

The Fair Credit Billing Act has a provision in which a lender can threaten your credit rating while you are resolving a billing dispute.

Installment sales credit is a:

What are the three most common types of closed-end credit?

Which federal consumer credit law prohibits credit discrimination based on sex and marital status?

Which one of the following would not be a good use of a home equity loan?

Installment cash credit is a direct loan of money for personal purposes,home improvements,or vacation expenses.

The Consumer Financial Protection Bureau receives an average of how many complaints about the credit bureaus every year?

A home equity loan is based on the difference between the current market value of your home and the amount you still owe on your mortgage.

The credit cardholders who pay off their balances in full each month are known as convenience users.

Installment cash credit is a:

In the 5 Cs of credit,collateral is an asset that you pledge to a financial institution to obtain a loan.

If you think that your bill is wrong,you should first:

The borrower's attitude toward his or her credit obligations is called:

In the 5 Cs of credit,capital refers to your financial ability to meet credit obligations.

If you have declared personal bankruptcy,then this fact may be reported by credit bureaus for ________ years.

Credit is an arrangement to receive cash,goods,or services now and pay for them in the future.

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