Question 1

____ would be a proper use of credit.

Accepted Answer

A)  Purchase of a house 
B)  A financial emergency 
C)  Shopping convenience 
D)  Investing 
E)  All of these 
A)  Purchase of a house 
B)  A financial emergency 
C)  Shopping convenience 
D)  Investing 
E)  All of these

Question 2

Balance transfers can be expensive,including fees and eventually high interest rates.

Accepted Answer

A) True 
 B)False

Question 3

The "deleveraging" by consumers resulted,in part,from all but

Accepted Answer

A)  reduced use of installment credit 
B)  reduced use of revolving credit 
C)  reduced supply of credit 
D)  looser credit conditions 
E)  voluntary credit restraint 
A)  reduced use of installment credit 
B)  reduced use of revolving credit 
C)  reduced supply of credit 
D)  looser credit conditions 
E)  voluntary credit restraint

Question 4

Credit card users can often avoid finance charges entirely by paying their total balances by the stated due date.

Accepted Answer

A) True 
 B)False

Question 5

Credit bureaus

Accepted Answer

A)  will send you a free copy of your credit report whenever you ask. 
B)  may charge up to $20 for a copy of your credit report. 
C)  are required to correct errors only when a creditor asks them to. 
D)  All of these 
E)  None of these 
A)  will send you a free copy of your credit report whenever you ask. 
B)  may charge up to $20 for a copy of your credit report. 
C)  are required to correct errors only when a creditor asks them to. 
D)  All of these 
E)  None of these

Question 6

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-An example of open account credit would be a bank [debit | credit] card.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 7

After the Credit Card Act of 2009 was passed,late payments dropped but defaults increased.

Accepted Answer

A) True 
 B)False

Question 8

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-The first step to take if you are having credit difficulties would be to [talk to creditors | consult a credit counselor].

Accepted Answer

The answer of Choose the word or phrase in [...

Question 9

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-A person who pays his credit balance off every month should look for a credit card with a [long | short] grace period.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 10

Chapter 7 bankruptcy will

Accepted Answer

A)  eliminate all financial obligations. 
B)  result in the loss of all one's assets. 
C)  stay on one's credit record up to 10 years. 
D)  a and c 
E)  a, b, and c 
A)  eliminate all financial obligations. 
B)  result in the loss of all one's assets. 
C)  stay on one's credit record up to 10 years. 
D)  a and c 
E)  a, b, and c

Question 11

The APR on this account is 18%.Assuming the $926 does not include any interest charge,how much of your minimum payment will be used for interest?

Accepted Answer

$926 *.18/

Question 12

Credit should not consistently be used for non-durable goods.

Accepted Answer

A) True 
 B)False

Question 13

Persons with very poor credit ratings can still get ____ credit cards.

Accepted Answer

A)  secured 
B)  student 
C)  prestige 
D)  affinity 
E)  rebate 
A)  secured 
B)  student 
C)  prestige 
D)  affinity 
E)  rebate

Question 14

Clare's gross salary is $36,000 annually and her after-tax income is $28,800.What is Clare's maximum recommended monthly consumer credit payment?

Accepted Answer

A)  $600. 
B)  $480. 
C)  $450. 
D)  $360. 
E)  $200. 
A)  $600. 
B)  $480. 
C)  $450. 
D)  $360. 
E)  $200.

Question 15

The proceeds of a home equity loan can be used for just about any purpose,and the interest paid is usually tax deductible.

Accepted Answer

A) True 
 B)False

Question 16

A credit card user's credit rating will be harmed if she pays only the minimum monthly payment on a credit card.

Accepted Answer

A) True 
 B)False

Question 17

Ted and Karen have a combined take-home income of $4,500.Their total monthly payments on consumer debt are $875.What is their debt safety ratio? Are they exhibiting any sign of approaching credit problems?

Accepted Answer

$875/$4,500 = 19.4%
They are approaching

Question 18

Most of the reduction in household indebtedness is due to

Accepted Answer

A)  fewer new loans 
B)  loan defaults 
C)  accelerated payment schedules 
D)  loan workout agreements 
E)  c and d 
A)  fewer new loans 
B)  loan defaults 
C)  accelerated payment schedules 
D)  loan workout agreements 
E)  c and d

Question 19

Which of the following household appliances could help you protect yourself against identity theft?

Accepted Answer

A)  VCR 
B)  cell phone 
C)  shredder 
D)  home computer 
E)  telephone answering machine 
A)  VCR 
B)  cell phone 
C)  shredder 
D)  home computer 
E)  telephone answering machine

Question 20

A type of bankruptcy that allows one to wipe out his unsecured debt and restructure his secured debt is called

Accepted Answer

A)  the wage earner plan. 
B)  Chapter 11 bankruptcy. 
C)  Chapter 20 bankruptcy. 
D)  Chapter 7 bankruptcy. 
E)  Chapter 13 bankruptcy. 
A)  the wage earner plan. 
B)  Chapter 11 bankruptcy. 
C)  Chapter 20 bankruptcy. 
D)  Chapter 7 bankruptcy. 
E)  Chapter 13 bankruptcy.

____ would be a proper use of credit.

Balance transfers can be expensive,including fees and eventually high interest rates.

The "deleveraging" by consumers resulted,in part,from all but

Credit card users can often avoid finance charges entirely by paying their total balances by the stated due date.

Credit bureaus

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -An example of open account credit would be a bank [debit | credit] card.

After the Credit Card Act of 2009 was passed,late payments dropped but defaults increased.

Chapter 7 bankruptcy will

The APR on this account is 18%.Assuming the $926 does not include any interest charge,how much of your minimum payment will be used for interest?

Credit should not consistently be used for non-durable goods.

Persons with very poor credit ratings can still get ____ credit cards.

Clare's gross salary is $36,000 annually and her after-tax income is $28,800.What is Clare's maximum recommended monthly consumer credit payment?

The proceeds of a home equity loan can be used for just about any purpose,and the interest paid is usually tax deductible.

A credit card user's credit rating will be harmed if she pays only the minimum monthly payment on a credit card.

Ted and Karen have a combined take-home income of $4,500.Their total monthly payments on consumer debt are $875.What is their debt safety ratio? Are they exhibiting any sign of approaching credit problems?

Most of the reduction in household indebtedness is due to

Which of the following household appliances could help you protect yourself against identity theft?

A type of bankruptcy that allows one to wipe out his unsecured debt and restructure his secured debt is called

Understanding the Financial Planning Process

Using Financial Statements and Budgets

Preparing Your Taxes

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds

Planning for Retirement

Preserving Your Estate

Filters

Exam 6: Using Credit

____ would be a proper use of credit.

Balance transfers can be expensive,including fees and eventually high interest rates.

The "deleveraging" by consumers resulted,in part,from all but

Credit card users can often avoid finance charges entirely by paying their total balances by the stated due date.

Credit bureaus

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -An example of open account credit would be a bank [debit | credit] card.

After the Credit Card Act of 2009 was passed,late payments dropped but defaults increased.

Chapter 7 bankruptcy will

The APR on this account is 18%.Assuming the $926 does not include any interest charge,how much of your minimum payment will be used for interest?

Credit should not consistently be used for non-durable goods.

Persons with very poor credit ratings can still get ____ credit cards.

Clare's gross salary is $36,000 annually and her after-tax income is $28,800.What is Clare's maximum recommended monthly consumer credit payment?

The proceeds of a home equity loan can be used for just about any purpose,and the interest paid is usually tax deductible.

A credit card user's credit rating will be harmed if she pays only the minimum monthly payment on a credit card.

Ted and Karen have a combined take-home income of $4,500.Their total monthly payments on consumer debt are $875.What is their debt safety ratio? Are they exhibiting any sign of approaching credit problems?

Most of the reduction in household indebtedness is due to

Which of the following household appliances could help you protect yourself against identity theft?

A type of bankruptcy that allows one to wipe out his unsecured debt and restructure his secured debt is called

Understanding the Financial Planning Process

Using Financial Statements and Budgets

Preparing Your Taxes

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds

Planning for Retirement

Preserving Your Estate

Filters