Question 1

Consumer credit dates back to colonial times.

Accepted Answer

A) True 
 B)False

Question 2

A bank that is looking at your past payment records on your loans is most likely examining which aspect of the 5 Cs of lending?

Accepted Answer

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

Question 3

When resolving a billing dispute,a creditor must either tell you why the bill is correct or:

Accepted Answer

A) correct your account within two billing periods. 
B) send this information to a credit bureau. 
C) require you to pay the bill in full and then credit your account if the error is found. 
D) start the collection process. 
E) demand that you surrender your credit card. 
A) correct your account within two billing periods. 
B) send this information to a credit bureau. 
C) require you to pay the bill in full and then credit your account if the error is found. 
D) start the collection process. 
E) demand that you surrender your credit card.

Question 4

Which of the following is a credit bureau?

Accepted Answer

A) Federal Reserve 
B) Federal Trade Commission 
C) Better Business Bureau 
D) Experian 
E) FICO 
A) Federal Reserve 
B) Federal Trade Commission 
C) Better Business Bureau 
D) Experian 
E) FICO

Question 5

Which federal consumer credit law places the burden of proof for accurate credit information on the credit reporting agency rather than on the consumer?

Accepted Answer

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

Question 6

Which federal consumer credit law provides specific cost disclosure requirements for the annual percentage rate and the finance charges as a dollar amount?

Accepted Answer

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

Question 7

In addition to department stores,where else is a good place to obtain your first credit card?

Accepted Answer

A) Banks 
B) Credit unions 
C) Savings and loans associations 
D) Gasoline companies 
E) Investment companies 
A) Banks 
B) Credit unions 
C) Savings and loans associations 
D) Gasoline companies 
E) Investment companies

Question 8

Larry Arnold gets a direct loan of money to go on vacation with his family.There is no down payment,and he will repay the loan over the next twelve months.What type of credit did Larry use?

Accepted Answer

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

Question 9

If you have a complaint about a bank in connection with any of the federal credit laws,who should you contact?

Accepted Answer

A) National Credit Union Association 
B) Federal Trade Commission 
C) Federal Reserve System 
D) Comptroller of the Currency 
E) Bank Vice-President 
A) National Credit Union Association 
B) Federal Trade Commission 
C) Federal Reserve System 
D) Comptroller of the Currency 
E) Bank Vice-President

Question 10

Which federal credit law protects you against an unauthorized use of your credit card?

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 11

A valuable asset pledged to obtain a loan and subject to repossession upon default to satisfy the debt 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 12

Maryann Lawrence wants to get a loan in just her name.She knows the creditor cannot:

Accepted Answer

A) refuse her credit if she is creditworthy. 
B) consider income from her part-time job. 
C) consider the payment history of all her joint accounts. 
D) consider alimony payments she receives from her ex-husband. 
E) consider child support payments she receives from her ex-husband. 
A) refuse her credit if she is creditworthy. 
B) consider income from her part-time job. 
C) consider the payment history of all her joint accounts. 
D) consider alimony payments she receives from her ex-husband. 
E) consider child support payments she receives from her ex-husband.

Question 13

The debt payments-to-income ratio is calculated by dividing your total liabilities by your net worth.

Accepted Answer

A) True 
 B)False

Question 14

The Equal Credit Opportunity Act is very specific about how a person's age may be used in credit decisions.

Accepted Answer

A) True 
 B)False

Question 15

Interest is a periodic charge for the use of credit.

Accepted Answer

A) True 
 B)False

Question 16

How many alternatives do most consumers have in financing current purchases?

Accepted Answer

A) 1 
B) 2 
C) 3 
D) 4 
E) unlimited 
A) 1 
B) 2 
C) 3 
D) 4 
E) unlimited

Question 17

Which FICO credit score would represent the least risky borrower?

Accepted Answer

A) 400 
B) 550 
C) 625 
D) 700 
E) 825 
A) 400 
B) 550 
C) 625 
D) 700 
E) 825

Question 18

Which of the following is true of the baby boom generation?

Accepted Answer

A) Represents about 30% of the population 
B) Holds nearly 60% of the outstanding debt 
C) Extensively uses debt 
D) Born between 1946 and 1964 
E) All of these 
A) Represents about 30% of the population 
B) Holds nearly 60% of the outstanding debt 
C) Extensively uses debt 
D) Born between 1946 and 1964 
E) All of these

Question 19

A debit card:

Accepted Answer

A) decreases your account at the moment you buy goods or services. 
B) extends credit and delays your payment. 
C) is a new type of a credit card issued by VISA International. 
D) is another name for a travel and entertainment card. 
E) typically has a credit limit of $1,000. 
A) decreases your account at the moment you buy goods or services. 
B) extends credit and delays your payment. 
C) is a new type of a credit card issued by VISA International. 
D) is another name for a travel and entertainment card. 
E) typically has a credit limit of $1,000.

Question 20

Using a bank credit card,such as Visa or MasterCard,is an example of closed-end credit.

Accepted Answer

A) True 
 B)False

Consumer credit dates back to colonial times.

A bank that is looking at your past payment records on your loans is most likely examining which aspect of the 5 Cs of lending?

When resolving a billing dispute,a creditor must either tell you why the bill is correct or:

Which of the following is a credit bureau?

Which federal consumer credit law places the burden of proof for accurate credit information on the credit reporting agency rather than on the consumer?

Which federal consumer credit law provides specific cost disclosure requirements for the annual percentage rate and the finance charges as a dollar amount?

In addition to department stores,where else is a good place to obtain your first credit card?

Larry Arnold gets a direct loan of money to go on vacation with his family.There is no down payment,and he will repay the loan over the next twelve months.What type of credit did Larry use?

If you have a complaint about a bank in connection with any of the federal credit laws,who should you contact?

Which federal credit law protects you against an unauthorized use of your credit card?

A valuable asset pledged to obtain a loan and subject to repossession upon default to satisfy the debt is called:

Maryann Lawrence wants to get a loan in just her name.She knows the creditor cannot:

The debt payments-to-income ratio is calculated by dividing your total liabilities by your net worth.

The Equal Credit Opportunity Act is very specific about how a person's age may be used in credit decisions.

Interest is a periodic charge for the use of credit.

How many alternatives do most consumers have in financing current purchases?

Which FICO credit score would represent the least risky borrower?

Which of the following is true of the baby boom generation?

A debit card:

Using a bank credit card,such as Visa or MasterCard,is an example of closed-end credit.

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

Consumer credit dates back to colonial times.

A bank that is looking at your past payment records on your loans is most likely examining which aspect of the 5 Cs of lending?

When resolving a billing dispute,a creditor must either tell you why the bill is correct or:

Which of the following is a credit bureau?

Which federal consumer credit law places the burden of proof for accurate credit information on the credit reporting agency rather than on the consumer?

Which federal consumer credit law provides specific cost disclosure requirements for the annual percentage rate and the finance charges as a dollar amount?

In addition to department stores,where else is a good place to obtain your first credit card?

Larry Arnold gets a direct loan of money to go on vacation with his family.There is no down payment,and he will repay the loan over the next twelve months.What type of credit did Larry use?

If you have a complaint about a bank in connection with any of the federal credit laws,who should you contact?

Which federal credit law protects you against an unauthorized use of your credit card?

A valuable asset pledged to obtain a loan and subject to repossession upon default to satisfy the debt is called:

Maryann Lawrence wants to get a loan in just her name.She knows the creditor cannot:

The debt payments-to-income ratio is calculated by dividing your total liabilities by your net worth.

The Equal Credit Opportunity Act is very specific about how a person's age may be used in credit decisions.

Interest is a periodic charge for the use of credit.

How many alternatives do most consumers have in financing current purchases?

Which FICO credit score would represent the least risky borrower?

Which of the following is true of the baby boom generation?

A debit card:

Using a bank credit card,such as Visa or MasterCard,is an example of closed-end credit.

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