Question 1

The Consumer Financial Protection Bureau receives more consumer complaints about credit bureaus than about any other industry.

Accepted Answer

A) True 
 B)False

Question 2

Samantha Prescott knows that credit companies must evaluate her on the same basis as a borrower who is male.Which consumer protection law guarantees her this right?

Accepted Answer

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

Question 3

The debt-to-equity ratio is calculated by dividing your monthly debt payments by your net worth.

Accepted Answer

A) True 
 B)False

Question 4

Dave's net take-home pay per month is $2,100.What is the maximum dollar amount of debt payments,excluding a home mortgage,he should have?

Accepted Answer

A) $840 
B) $420 
C) $315 
D) $210 
E) $0 
A) $840 
B) $420 
C) $315 
D) $210 
E) $0

Question 5

With open-end credit,you pay back one-time loans in a specified period of time in payments of equal amounts.

Accepted Answer

A) True 
 B)False

Question 6

Which federal consumer credit law allows consumers to withhold payment for faulty or defective goods or services when purchased with a credit card?

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 7

In the 5 Cs of credit,capital refers to your assets or net worth.

Accepted Answer

A) True 
 B)False

Question 8

Which federal consumer credit law requires credit reporting agencies to send the consumer's version of a disputed item to certain businesses or creditors?

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

If you dispute the accuracy of information in your credit file:

Accepted Answer

A) you should sue the credit bureau. 
B) the credit bureau has no power to change it. 
C) the credit bureau must reinvestigate and modify or remove inaccurate data. 
D) you must wait at least six months prior to launching an investigation. 
E) you have no means of correcting it. 
A) you should sue the credit bureau. 
B) the credit bureau has no power to change it. 
C) the credit bureau must reinvestigate and modify or remove inaccurate data. 
D) you must wait at least six months prior to launching an investigation. 
E) you have no means of correcting it.

Question 10

Which federal consumer credit law prohibits abusive,deceptive,and unfair practices by debt collectors?

Accepted Answer

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

Question 11

The best way to maintain your credit standing is to:

Accepted Answer

A) use credit sparingly. 
B) pay cash for your purchases. 
C) repay your debts on time. 
D) declare a Chapter 7 bankruptcy. 
E) use as many credit cards as you can. 
A) use credit sparingly. 
B) pay cash for your purchases. 
C) repay your debts on time. 
D) declare a Chapter 7 bankruptcy. 
E) use as many credit cards as you can.

Question 12

Paul Phillips has checked his credit report and believes there is an error in it.Which consumer protection law specifies that he has the right to have errors in his credit report investigated?

Accepted Answer

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

Question 13

Which federal consumer credit law starts all credit applicants off on the same footing with factors that may not be used to discriminate against you?

Accepted Answer

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

Question 14

Experts suggest that you spend no more than ________ percent of your net income (after-tax)on consumer credit payments.

Accepted Answer

A) 10 
B) 20 
C) 30 
D) 40 
E) 50 
A) 10 
B) 20 
C) 30 
D) 40 
E) 50

Question 15

Although credit allows more immediate satisfaction of needs and desires,it does not increase total purchasing power.

Accepted Answer

A) True 
 B)False

Question 16

According to a recent survey,how many U.S.households carry one or more credit cards?

Accepted Answer

A) 4 out of 10 
B) 5 out of 10 
C) 6 out of 10 
D) 7 out of 10 
E) 9 out of 10 
A) 4 out of 10 
B) 5 out of 10 
C) 6 out of 10 
D) 7 out of 10 
E) 9 out of 10

Question 17

Describe the federal law that protects you from billing mistakes/errors.

Accepted Answer

The Fair Credit Billing Act (FCBA),passe

Question 18

Jim Roy visits the doctor for his annual check-up which costs $85.He is billed for this at the end of the month.What type of credit did Jim use?

Accepted Answer

A) Installment sales credit 
B) Installment cash credit 
C) Single lump-sum credit 
D) Closed-end credit 
E) Incidental credit 
A) Installment sales credit 
B) Installment cash credit 
C) Single lump-sum credit 
D) Closed-end credit 
E) Incidental credit

Question 19

Jennifer Rogers needs a loan to purchase a new car.She knows the creditor must:

Accepted Answer

A) ask about her children. 
B) consider whether she has a telephone. 
C) evaluate her on the same basis as applicants who are male. 
D) require her to find a cosigner for the loan. 
E) ask about her exercise practices. 
A) ask about her children. 
B) consider whether she has a telephone. 
C) evaluate her on the same basis as applicants who are male. 
D) require her to find a cosigner for the loan. 
E) ask about her exercise practices.

Question 20

The information in your credit report is used by the credit bureau to calculate your:

Accepted Answer

A) debt to equity ratio. 
B) FICO credit score. 
C) debt payment to income ratio. 
D) liquidity ratio. 
E) long term capitalization ratio. 
A) debt to equity ratio. 
B) FICO credit score. 
C) debt payment to income ratio. 
D) liquidity ratio. 
E) long term capitalization ratio.

The Consumer Financial Protection Bureau receives more consumer complaints about credit bureaus than about any other industry.

Samantha Prescott knows that credit companies must evaluate her on the same basis as a borrower who is male.Which consumer protection law guarantees her this right?

The debt-to-equity ratio is calculated by dividing your monthly debt payments by your net worth.

Dave's net take-home pay per month is $2,100.What is the maximum dollar amount of debt payments,excluding a home mortgage,he should have?

With open-end credit,you pay back one-time loans in a specified period of time in payments of equal amounts.

Which federal consumer credit law allows consumers to withhold payment for faulty or defective goods or services when purchased with a credit card?

In the 5 Cs of credit,capital refers to your assets or net worth.

Which federal consumer credit law requires credit reporting agencies to send the consumer's version of a disputed item to certain businesses or creditors?

If you dispute the accuracy of information in your credit file:

Which federal consumer credit law prohibits abusive,deceptive,and unfair practices by debt collectors?

The best way to maintain your credit standing is to:

Paul Phillips has checked his credit report and believes there is an error in it.Which consumer protection law specifies that he has the right to have errors in his credit report investigated?

Which federal consumer credit law starts all credit applicants off on the same footing with factors that may not be used to discriminate against you?

Experts suggest that you spend no more than ________ percent of your net income (after-tax)on consumer credit payments.

Although credit allows more immediate satisfaction of needs and desires,it does not increase total purchasing power.

According to a recent survey,how many U.S.households carry one or more credit cards?

Describe the federal law that protects you from billing mistakes/errors.

Jim Roy visits the doctor for his annual check-up which costs $85.He is billed for this at the end of the month.What type of credit did Jim use?

Jennifer Rogers needs a loan to purchase a new car.She knows the creditor must:

The information in your credit report is used by the credit bureau to calculate your:

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

The Consumer Financial Protection Bureau receives more consumer complaints about credit bureaus than about any other industry.

Samantha Prescott knows that credit companies must evaluate her on the same basis as a borrower who is male.Which consumer protection law guarantees her this right?

The debt-to-equity ratio is calculated by dividing your monthly debt payments by your net worth.

Dave's net take-home pay per month is $2,100.What is the maximum dollar amount of debt payments,excluding a home mortgage,he should have?

With open-end credit,you pay back one-time loans in a specified period of time in payments of equal amounts.

Which federal consumer credit law allows consumers to withhold payment for faulty or defective goods or services when purchased with a credit card?

In the 5 Cs of credit,capital refers to your assets or net worth.

Which federal consumer credit law requires credit reporting agencies to send the consumer's version of a disputed item to certain businesses or creditors?

If you dispute the accuracy of information in your credit file:

Which federal consumer credit law prohibits abusive,deceptive,and unfair practices by debt collectors?

The best way to maintain your credit standing is to:

Paul Phillips has checked his credit report and believes there is an error in it.Which consumer protection law specifies that he has the right to have errors in his credit report investigated?

Which federal consumer credit law starts all credit applicants off on the same footing with factors that may not be used to discriminate against you?

Experts suggest that you spend no more than ________ percent of your net income (after-tax)on consumer credit payments.

Although credit allows more immediate satisfaction of needs and desires,it does not increase total purchasing power.

According to a recent survey,how many U.S.households carry one or more credit cards?

Describe the federal law that protects you from billing mistakes/errors.

Jim Roy visits the doctor for his annual check-up which costs $85.He is billed for this at the end of the month.What type of credit did Jim use?

Jennifer Rogers needs a loan to purchase a new car.She knows the creditor must:

The information in your credit report is used by the credit bureau to calculate your:

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