Question 1

Bank credit card cash advances will begin accruing interest charges immediately.

Accepted Answer

A) True 
 B)False

Question 2

____ does not represent a line of credit.

Accepted Answer

A)  Retail credit card 
B)  Debit card 
C)  Overdraft protection 
D)  Home equity LOC 
E)  Unsecured personal credit 
A)  Retail credit card 
B)  Debit card 
C)  Overdraft protection 
D)  Home equity LOC 
E)  Unsecured personal credit

Question 3

Unsecured lines of credit provide tax advantages if you itemize deductions.

Accepted Answer

A) True 
 B)False

Question 4

____ cards offer the cardholder a way to contribute to a worthy cause,sometimes described as "painless philanthropy."

Accepted Answer

A)  Travel and entertainment 
B)  Debit 
C)  Credit 
D)  Affinity 
E)  Rebate 
A)  Travel and entertainment 
B)  Debit 
C)  Credit 
D)  Affinity 
E)  Rebate

Question 5

Always paying cash is helpful in establishing a high level of creditworthiness.

Accepted Answer

A) True 
 B)False

Question 6

If your monthly before-tax income is $2,000 and your monthly take-home pay is $1,500,your maximum monthly consumer credit payments should not exceed

Accepted Answer

A)  $600. 
B)  $450. 
C)  $400. 
D)  $300. 
E)  $200. 
A)  $600. 
B)  $450. 
C)  $400. 
D)  $300. 
E)  $200.

Question 7

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.
-Student credit cards usually [do | do not] require parental or guardian guarantees.

Accepted Answer

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

Question 8

Bank credit cards often offer features such as buyer protection plans for a fee to all customers.

Accepted Answer

A) True 
 B)False

Question 9

Sheldon has a home valued at $108,000 and an outstanding mortgage of $70,000.If his lender is willing to provide a home equity loan of up to 80% of market value,how much could Sheldon borrow using a home equity loan?

Accepted Answer

A)  $86,400 
B)  $80,000 
C)  $38,000 
D)  $30,400 
E)  $16,400 
A)  $86,400 
B)  $80,000 
C)  $38,000 
D)  $30,400 
E)  $16,400

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.
-In the year after the Credit Card Act of 2009 was passed,there was a(n)[increase | decrease] in the use of debit cards relative to credit cards.

Accepted Answer

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

Question 11

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.
-Using [credit | savings] to handle financial emergencies is the recommended choice.

Accepted Answer

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

Question 12

Auto loans are an example of open-end credit since you can add to the debt when you purchase another vehicle.

Accepted Answer

A) True 
 B)False

Question 13

Interest rates on credit cards tend to be lower than most other forms of consumer credit.

Accepted Answer

A) True 
 B)False

Question 14

A revolving charge account requires the customers to pay off the debt 10 to 20 days after the billing date with no interest expense.

Accepted Answer

A) True 
 B)False

Question 15

An overdraft protection line of credit allows one to routinely bounce checks with little or no adverse consequences.

Accepted Answer

A) True 
 B)False

Question 16

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 most expensive method of determining finance charges on revolving credit would be [two cycle ADB w/purchases | ADB excluding purchases].

Accepted Answer

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

Question 17

The most common forms of open account credit are travel and entertainment cards.

Accepted Answer

A) True 
 B)False

Question 18

Joe and Jane have a tendency to build up large balances on their credit cards.Which of the following would be least important for them?

Accepted Answer

A)  no annual fee. 
B)  low interest rates on balances. 
C)  long grace period. 
D)  method of calculating balances. 
E)  a and b. 
A)  no annual fee. 
B)  low interest rates on balances. 
C)  long grace period. 
D)  method of calculating balances. 
E)  a and b.

Question 19

The grace period on a credit card starts on the billing date and ends on the date the lender should receive the payment.

Accepted Answer

A) True 
 B)False

Question 20

____ would be an indication of overspending.

Accepted Answer

A)  Your checks are bouncing. 
B)  Collection agencies are calling you frequently . 
C)  All your credit cards are charged up to their limits. 
D)  You have no cash reserves and must borrow for incidentals. 
E)  All of the above. 
A)  Your checks are bouncing. 
B)  Collection agencies are calling you frequently . 
C)  All your credit cards are charged up to their limits. 
D)  You have no cash reserves and must borrow for incidentals. 
E)  All of the above.

Bank credit card cash advances will begin accruing interest charges immediately.

____ does not represent a line of credit.

Unsecured lines of credit provide tax advantages if you itemize deductions.

____ cards offer the cardholder a way to contribute to a worthy cause,sometimes described as "painless philanthropy."

Always paying cash is helpful in establishing a high level of creditworthiness.

If your monthly before-tax income is $2,000 and your monthly take-home pay is $1,500,your maximum monthly consumer credit payments should not exceed

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. -Student credit cards usually [do | do not] require parental or guardian guarantees.

Bank credit cards often offer features such as buyer protection plans for a fee to all customers.

Sheldon has a home valued at $108,000 and an outstanding mortgage of $70,000.If his lender is willing to provide a home equity loan of up to 80% of market value,how much could Sheldon borrow using a home equity loan?

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. -Using [credit | savings] to handle financial emergencies is the recommended choice.

Auto loans are an example of open-end credit since you can add to the debt when you purchase another vehicle.

Interest rates on credit cards tend to be lower than most other forms of consumer credit.

A revolving charge account requires the customers to pay off the debt 10 to 20 days after the billing date with no interest expense.

An overdraft protection line of credit allows one to routinely bounce checks with little or no adverse consequences.

The most common forms of open account credit are travel and entertainment cards.

Joe and Jane have a tendency to build up large balances on their credit cards.Which of the following would be least important for them?

The grace period on a credit card starts on the billing date and ends on the date the lender should receive the payment.

____ would be an indication of overspending.

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

Bank credit card cash advances will begin accruing interest charges immediately.

____ does not represent a line of credit.

Unsecured lines of credit provide tax advantages if you itemize deductions.

____ cards offer the cardholder a way to contribute to a worthy cause,sometimes described as "painless philanthropy."

Always paying cash is helpful in establishing a high level of creditworthiness.

If your monthly before-tax income is $2,000 and your monthly take-home pay is $1,500,your maximum monthly consumer credit payments should not exceed

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. -Student credit cards usually [do | do not] require parental or guardian guarantees.

Bank credit cards often offer features such as buyer protection plans for a fee to all customers.

Sheldon has a home valued at $108,000 and an outstanding mortgage of $70,000.If his lender is willing to provide a home equity loan of up to 80% of market value,how much could Sheldon borrow using a home equity loan?

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. -Using [credit | savings] to handle financial emergencies is the recommended choice.

Auto loans are an example of open-end credit since you can add to the debt when you purchase another vehicle.

Interest rates on credit cards tend to be lower than most other forms of consumer credit.

A revolving charge account requires the customers to pay off the debt 10 to 20 days after the billing date with no interest expense.

An overdraft protection line of credit allows one to routinely bounce checks with little or no adverse consequences.

The most common forms of open account credit are travel and entertainment cards.

Joe and Jane have a tendency to build up large balances on their credit cards.Which of the following would be least important for them?

The grace period on a credit card starts on the billing date and ends on the date the lender should receive the payment.

____ would be an indication of overspending.

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