Question 1

As a percent of take-home pay,monthly consumer credit payments should not exceed

Accepted Answer

A)  25%. 
B)  20%. 
C)  15%. 
D)  10%. 
E)  5%. 
A)  25%. 
B)  20%. 
C)  15%. 
D)  10%. 
E)  5%.

Question 2

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.
-Most of your debts would be totally discharged under Chapter [7 | 13] of the federal bankruptcy law.

Accepted Answer

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

Question 3

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 her credit balance off every month should look for a credit card with [a low interest rate | no annual fee].

Accepted Answer

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

Question 4

Theresa is a bit of a spendthrift.She has trouble saying no when it comes to buying things.Which of the following cards would keep her out of debt?

Accepted Answer

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

Question 5

The ____ is really a second mortgage on your home.

Accepted Answer

A)  affinity card 
B)  unsecured personal credit line 
C)  home equity line of credit 
D)  preferred Visa card 
E)  platinum American Express card 
A)  affinity card 
B)  unsecured personal credit line 
C)  home equity line of credit 
D)  preferred Visa card 
E)  platinum American Express card

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.
-A home equity lines of credit is one of the [most | least] expensive forms of consumer credit.

Accepted Answer

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

Question 7

The most common method of computing finance charges on a credit card is the average daily balance method including new purchases.

Accepted Answer

A) True 
 B)False

Question 8

Mike has a MasterCard with an annual fee of $25,18% interest,and a $1,000 credit limit.He always pays the total outstanding balance monthly.His most recent monthly statement lists last month's payment,new charges this month totaling $1,500,and a $30 fee.That fee is most likely the result of

Accepted Answer

A)  interest charges. 
B)  his annual fee. 
C)  an over-the-limit fee. 
D)  a late payment. 
E)  transaction fees on purchases. 
A)  interest charges. 
B)  his annual fee. 
C)  an over-the-limit fee. 
D)  a late payment. 
E)  transaction fees on purchases.

Question 9

Which of the following are true regarding credit scoring systems?

Accepted Answer

A)  Lower scores are better than higher scores. 
B)  Scoring systems are based on statistical studies. 
C)  Credit unions calculate and sell credit scores to lenders. 
D)  Females receive higher score than males. 
E)  All of the above. 
A)  Lower scores are better than higher scores. 
B)  Scoring systems are based on statistical studies. 
C)  Credit unions calculate and sell credit scores to lenders. 
D)  Females receive higher score than males. 
E)  All of the above.

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.
-Your chances of being approved for a loan [increase | decrease] the higher your credit score.

Accepted Answer

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

Question 11

Interest rates on ____ are typically lower than on any other form of consumer credit.

Accepted Answer

A)  travel and entertainment cards 
B)  debit cards 
C)  credit cards 
D)  home equity loans 
E)  unsecured personal credit 
A)  travel and entertainment cards 
B)  debit cards 
C)  credit cards 
D)  home equity loans 
E)  unsecured personal credit

Question 12

Using more than 20 percent of one's take-home income to pay off consumer debt is one of the signs that one may be headed for serious credit problems.

Accepted Answer

A) True 
 B)False

Question 13

Open account credit is characterized by

Accepted Answer

A)  no credit limit. 
B)  a monthly credit statement. 
C)  annual billing. 
D)  minimum balance requirements. 
E)  none of the above. 
A)  no credit limit. 
B)  a monthly credit statement. 
C)  annual billing. 
D)  minimum balance requirements. 
E)  none of the above.

Question 14

Indebtedness relative to household income decreased due to all but

Accepted Answer

A)  home sales 
B)  home foreclosures 
C)  fewer consumer loans 
D)  consumer loan defaults 
E)  surge in home mortgage refinancing 
A)  home sales 
B)  home foreclosures 
C)  fewer consumer loans 
D)  consumer loan defaults 
E)  surge in home mortgage refinancing

Question 15

The amount of finance charges one pays on a credit card depends only on APR and the amount one charges.

Accepted Answer

A) True 
 B)False

Question 16

Never adding up all one's bills is one of the signs that one may be headed for serious credit problems.

Accepted Answer

A) True 
 B)False

Question 17

Being late on credit payments only 2-3 times per year pay label you a "late payer" in your credit file.

Accepted Answer

A) True 
 B)False

Question 18

A ____ is an agency that provides credit information about individual borrowers to lenders.

Accepted Answer

A)  credit bureau 
B)  consumer bureau 
C)  credit statement 
D)  bank 
E)  credit scoring house 
A)  credit bureau 
B)  consumer bureau 
C)  credit statement 
D)  bank 
E)  credit scoring house

Question 19

Identity theft is a growing problem that could damage your credit rating.

Accepted Answer

A) True 
 B)False

Question 20

When paying for something with a check,don't give your ____ number.

Accepted Answer

A)  Social Security 
B)  credit card 
C)  drivers license 
D)  a and b 
E)  a, b, and c 
A)  Social Security 
B)  credit card 
C)  drivers license 
D)  a and b 
E)  a, b, and c

As a percent of take-home pay,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. -Most of your debts would be totally discharged under Chapter [7 | 13] of the federal bankruptcy law.

Theresa is a bit of a spendthrift.She has trouble saying no when it comes to buying things.Which of the following cards would keep her out of debt?

The ____ is really a second mortgage on your home.

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 home equity lines of credit is one of the [most | least] expensive forms of consumer credit.

The most common method of computing finance charges on a credit card is the average daily balance method including new purchases.

Mike has a MasterCard with an annual fee of $25,18% interest,and a $1,000 credit limit.He always pays the total outstanding balance monthly.His most recent monthly statement lists last month's payment,new charges this month totaling $1,500,and a $30 fee.That fee is most likely the result of

Which of the following are true regarding credit scoring systems?

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. -Your chances of being approved for a loan [increase | decrease] the higher your credit score.

Interest rates on ____ are typically lower than on any other form of consumer credit.

Using more than 20 percent of one's take-home income to pay off consumer debt is one of the signs that one may be headed for serious credit problems.

Open account credit is characterized by

Indebtedness relative to household income decreased due to all but

The amount of finance charges one pays on a credit card depends only on APR and the amount one charges.

Never adding up all one's bills is one of the signs that one may be headed for serious credit problems.

Being late on credit payments only 2-3 times per year pay label you a "late payer" in your credit file.

A ____ is an agency that provides credit information about individual borrowers to lenders.

Identity theft is a growing problem that could damage your credit rating.

When paying for something with a check,don't give your ____ number.

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

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Exam 6: Using Credit

As a percent of take-home pay,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. -Most of your debts would be totally discharged under Chapter [7 | 13] of the federal bankruptcy law.

Theresa is a bit of a spendthrift.She has trouble saying no when it comes to buying things.Which of the following cards would keep her out of debt?

The ____ is really a second mortgage on your home.

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 home equity lines of credit is one of the [most | least] expensive forms of consumer credit.

The most common method of computing finance charges on a credit card is the average daily balance method including new purchases.

Mike has a MasterCard with an annual fee of $25,18% interest,and a $1,000 credit limit.He always pays the total outstanding balance monthly.His most recent monthly statement lists last month's payment,new charges this month totaling $1,500,and a $30 fee.That fee is most likely the result of

Which of the following are true regarding credit scoring systems?

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. -Your chances of being approved for a loan [increase | decrease] the higher your credit score.

Interest rates on ____ are typically lower than on any other form of consumer credit.

Using more than 20 percent of one's take-home income to pay off consumer debt is one of the signs that one may be headed for serious credit problems.

Open account credit is characterized by

Indebtedness relative to household income decreased due to all but

The amount of finance charges one pays on a credit card depends only on APR and the amount one charges.

Never adding up all one's bills is one of the signs that one may be headed for serious credit problems.

Being late on credit payments only 2-3 times per year pay label you a "late payer" in your credit file.

A ____ is an agency that provides credit information about individual borrowers to lenders.

Identity theft is a growing problem that could damage your credit rating.

When paying for something with a check,don't give your ____ number.

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