Question 1

Credit reports on individual borrowers are issued by credit unions reporting agencies.

Accepted Answer

A) True 
 B)False

Question 2

A Chapter 13 bankruptcy filing would result in the discharge of most of your debts.

Accepted Answer

A) True 
 B)False

Question 3

Credit cards often have penalties for late payment and for exceeding credit limits.

Accepted Answer

A) True 
 B)False

Question 4

Families who have a source of income and who want to retain their assets above the protected amount would select Chapter 13 rather than Chapter 7 bankruptcy.

Accepted Answer

A) True 
 B)False

Question 5

Chapter 7 bankruptcies remain in your credit file for 7 years.

Accepted Answer

A) True 
 B)False

Question 6

Paying only the minimum payment each time on a credit card usually enables one to pay off the balance fairly quickly.

Accepted Answer

A) True 
 B)False

Question 7

Russ and Lois have a home valued at $96,000 and an outstanding mortgage of $60,000.If their lender is willing to provide a home equity loan of up to 75% of market value,how much could they borrow using a home equity loan?

Accepted Answer

A)  $ 0 
B)  $12,000 
C)  $27,000 
D)  $28,000 
E)  $36,000 
A)  $ 0 
B)  $12,000 
C)  $27,000 
D)  $28,000 
E)  $36,000

Question 8

All of the following are key items lenders look at in granting credit except

Accepted Answer

A)  income. 
B)  outstanding debt. 
C)  stability in employment and housing. 
D)  religious affiliations. 
E)  credit history. 
A)  income. 
B)  outstanding debt. 
C)  stability in employment and housing. 
D)  religious affiliations. 
E)  credit history.

Question 9

Cards that can be used to pay for selected items and the amount of the transaction is automatically subtracted from the card value are called ____ cards.

Accepted Answer

A)  debit 
B)  credit 
C)  affinity 
D)  prepaid 
E)  prestige 
A)  debit 
B)  credit 
C)  affinity 
D)  prepaid 
E)  prestige

Question 10

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 improper use of extended credit would be to buy a [car | vacation].

Accepted Answer

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

Question 11

When comparing credit cards,a person who pays his total outstanding balance off monthly would want a card with

Accepted Answer

A)  a low required minimum payment percentage. 
B)  a low interest rate. 
C)  an adequate grace period. 
D)  no annual fee 
E)  c and d 
A)  a low required minimum payment percentage. 
B)  a low interest rate. 
C)  an adequate grace period. 
D)  no annual fee 
E)  c and d

Question 12

Credit bureau files often include information such as political and religious affiliations in addition to financial information.

Accepted Answer

A) True 
 B)False

Question 13

To establish creditworthiness you probably should first

Accepted Answer

A)  open savings and checking accounts. 
B)  use credit extensively. 
C)  arrange a small loan. 
D)  pay cash for all purchases. 
E)  arrange a large loan from close relatives. 
A)  open savings and checking accounts. 
B)  use credit extensively. 
C)  arrange a small loan. 
D)  pay cash for all purchases. 
E)  arrange a large loan from close relatives.

Question 14

The lender uses a credit application to determine whether the borrower has the ____ to handle the debt.

Accepted Answer

A)  character and confidence. 
B)  confidence and capacity. 
C)  acumen and capacity. 
D)  character and capacity. 
E)  credit and character. 
A)  character and confidence. 
B)  confidence and capacity. 
C)  acumen and capacity. 
D)  character and capacity. 
E)  credit and character.

Question 15

If you initiated the telephone call,it is okay to give your credit card account number when ordering/purchasing from major catalog houses,airlines,hotels,and so on.

Accepted Answer

A) True 
 B)False

Question 16

You have a $926 balance on your credit card account.The minimum payment on your account is 2 percent of the latest balance or $20,whichever is greater.What will be the minimum payment this month?

Accepted Answer

$926 *.02 = $18.52
S

Question 17

Student credit cards typically require that one be enrolled in a 2- or 4-year college/university and

Accepted Answer

A)  a parent's signature. 
B)  own a vehicle. 
C)  hold a job. 
D)  have some form of income. 
E)  take at least nine hours. 
A)  a parent's signature. 
B)  own a vehicle. 
C)  hold a job. 
D)  have some form of income. 
E)  take at least nine hours.

Question 18

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.
-Rebate cards are most useful for consumers who charge a lot and [maintain | do not maintain] large balances of their cards.

Accepted Answer

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

Question 19

Advantages of balance transfers can include lower interest rates and the convenience of consolidation.

Accepted Answer

A) True 
 B)False

Question 20

The following information provides insight to a lender about the applicant's credit worthiness except:

Accepted Answer

A)  personal/family matters 
B)  housing 
C)  employment 
D)  income 
E)  all of the above provide insight 
A)  personal/family matters 
B)  housing 
C)  employment 
D)  income 
E)  all of the above provide insight

Credit reports on individual borrowers are issued by credit unions reporting agencies.

A Chapter 13 bankruptcy filing would result in the discharge of most of your debts.

Credit cards often have penalties for late payment and for exceeding credit limits.

Families who have a source of income and who want to retain their assets above the protected amount would select Chapter 13 rather than Chapter 7 bankruptcy.

Chapter 7 bankruptcies remain in your credit file for 7 years.

Paying only the minimum payment each time on a credit card usually enables one to pay off the balance fairly quickly.

Russ and Lois have a home valued at $96,000 and an outstanding mortgage of $60,000.If their lender is willing to provide a home equity loan of up to 75% of market value,how much could they borrow using a home equity loan?

All of the following are key items lenders look at in granting credit except

Cards that can be used to pay for selected items and the amount of the transaction is automatically subtracted from the card value are called ____ cards.

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 improper use of extended credit would be to buy a [car | vacation].

When comparing credit cards,a person who pays his total outstanding balance off monthly would want a card with

Credit bureau files often include information such as political and religious affiliations in addition to financial information.

To establish creditworthiness you probably should first

The lender uses a credit application to determine whether the borrower has the ____ to handle the debt.

If you initiated the telephone call,it is okay to give your credit card account number when ordering/purchasing from major catalog houses,airlines,hotels,and so on.

You have a $926 balance on your credit card account.The minimum payment on your account is 2 percent of the latest balance or $20,whichever is greater.What will be the minimum payment this month?

Student credit cards typically require that one be enrolled in a 2- or 4-year college/university and

Advantages of balance transfers can include lower interest rates and the convenience of consolidation.

The following information provides insight to a lender about the applicant's credit worthiness except:

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

Credit reports on individual borrowers are issued by credit unions reporting agencies.

A Chapter 13 bankruptcy filing would result in the discharge of most of your debts.

Credit cards often have penalties for late payment and for exceeding credit limits.

Families who have a source of income and who want to retain their assets above the protected amount would select Chapter 13 rather than Chapter 7 bankruptcy.

Chapter 7 bankruptcies remain in your credit file for 7 years.

Paying only the minimum payment each time on a credit card usually enables one to pay off the balance fairly quickly.

Russ and Lois have a home valued at $96,000 and an outstanding mortgage of $60,000.If their lender is willing to provide a home equity loan of up to 75% of market value,how much could they borrow using a home equity loan?

All of the following are key items lenders look at in granting credit except

Cards that can be used to pay for selected items and the amount of the transaction is automatically subtracted from the card value are called ____ cards.

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 improper use of extended credit would be to buy a [car | vacation].

When comparing credit cards,a person who pays his total outstanding balance off monthly would want a card with

Credit bureau files often include information such as political and religious affiliations in addition to financial information.

To establish creditworthiness you probably should first

The lender uses a credit application to determine whether the borrower has the ____ to handle the debt.

If you initiated the telephone call,it is okay to give your credit card account number when ordering/purchasing from major catalog houses,airlines,hotels,and so on.

You have a $926 balance on your credit card account.The minimum payment on your account is 2 percent of the latest balance or $20,whichever is greater.What will be the minimum payment this month?

Student credit cards typically require that one be enrolled in a 2- or 4-year college/university and

Advantages of balance transfers can include lower interest rates and the convenience of consolidation.

The following information provides insight to a lender about the applicant's credit worthiness except:

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