Question 1

Which of the following will not protect you from identity theft while on vacation?

Accepted Answer

A)  Carry all credit cards, passports, and birth certificates with you. 
B)  Have your mail stopped. 
C)  Do not leave credit slips in restaurants. 
D)  Do not leave sensitive information in your hotel room when you are not there. 
A)  Carry all credit cards, passports, and birth certificates with you. 
B)  Have your mail stopped. 
C)  Do not leave credit slips in restaurants. 
D)  Do not leave sensitive information in your hotel room when you are not there.

Question 2

Which of the following statements is not true regarding reviewing your credit report?

Accepted Answer

A)  You will be able to determine if any errors have been made so they can be corrected. 
B)  It will help determine if there are credit cards that you should apply for to improve your credit standing. 
C)  It will reveal the kind of information that lenders will consider when making a decision to extend credit. 
D)  It will reveal deficiencies that you can work to eliminate to improve your credit rating. 
A)  You will be able to determine if any errors have been made so they can be corrected. 
B)  It will help determine if there are credit cards that you should apply for to improve your credit standing. 
C)  It will reveal the kind of information that lenders will consider when making a decision to extend credit. 
D)  It will reveal deficiencies that you can work to eliminate to improve your credit rating.

Question 3

Discuss the factors that are used in determining credit scoring in the FICO model.

Accepted Answer

A) PAYING YOUR BILLS ON TIME O

Question 4

Historical credit problems normally remain on a credit bureau's report for seven years and ten years for bankruptcy.

Accepted Answer

A) True 
 B)False

Question 5

Posing as an employee of a brokerage firm to obtain information to allegedly update your account information is an example of

Accepted Answer

A)  shoulder surfing. 
B)  dumpster diving. 
C)  pretexting. 
D)  skimming. 
A)  shoulder surfing. 
B)  dumpster diving. 
C)  pretexting. 
D)  skimming.

Question 6

Creditors prefer a ________ level of cash inflows and ________ level of cash outflows.

Accepted Answer

A)  low; low 
B)  high; low 
C)  high; high 
D)  medium; low 
A)  low; low 
B)  high; low 
C)  high; high 
D)  medium; low

Question 7

Credit scores in the 500-600 range will likely result in

Accepted Answer

A)  lower interest rates. 
B)  higher interest rates. 
C)  automatic acceptance of your credit application. 
D)  preferential treatment of your application. 
A)  lower interest rates. 
B)  higher interest rates. 
C)  automatic acceptance of your credit application. 
D)  preferential treatment of your application.

Question 8

All of the following are correct statements about credit, except

Accepted Answer

A)  the creditor provides funds. 
B)  credit needs to be paid back in the future. 
C)  credit repayment will include interest. 
D)  the interest is the total amount to be repaid. 
A)  the creditor provides funds. 
B)  credit needs to be paid back in the future. 
C)  credit repayment will include interest. 
D)  the interest is the total amount to be repaid.

Question 9

Credit issued by department stores for relatively long periods of time is called non-installment credit.

Accepted Answer

A) True 
 B)False

Question 10

The ________ is a document showing information reporting your payment history and past use of credit.

Accepted Answer

A)  credit report 
B)  asset payment history 
C)  revolving open-end credit 
D)  debit report 
A)  credit report 
B)  asset payment history 
C)  revolving open-end credit 
D)  debit report

Question 11

If you think that your identity has been stolen, the FTC recommends you do all of the following, except

Accepted Answer

A)  contact the credit bureaus. 
B)  file a police report. 
C)  destroy all of your credit cards. 
D)  call your creditors. 
A)  contact the credit bureaus. 
B)  file a police report. 
C)  destroy all of your credit cards. 
D)  call your creditors.

Question 12

Credit payment history makes up ________ of your credit score.

Accepted Answer

A)  30% 
B)  33% 
C)  35% 
D)  50% 
A)  30% 
B)  33% 
C)  35% 
D)  50%

Question 13

________, ________, and ________ are the three major credit bureaus.

Accepted Answer

Equifax; E

Question 14

When creating credit scores, credit bureaus rely on a model created by the Fair Isaac Corporation.

Accepted Answer

A) True 
 B)False

Question 15

Credit bureau is required to investigate any report of erroneous information on your credit report within thirty days.

Accepted Answer

A) True 
 B)False

Question 16

Using more credit than can be repaid is a primary cause of individual bankruptcies.

Accepted Answer

A) True 
 B)False

Question 17

Historical credit problems remain on a credit bureau's report for ________ years while a bankruptcy remains for ________ years.

Accepted Answer

A)  ten; twenty 
B)  seven; ten 
C)  eight; fifteen 
D)  five; ten 
A)  ten; twenty 
B)  seven; ten 
C)  eight; fifteen 
D)  five; ten

Question 18

Creditors prefer a ________ amount of capital and ________ collateral in the best of circumstances.

Accepted Answer

A)  low; low 
B)  high; low 
C)  high; high 
D)  medium; low 
A)  low; low 
B)  high; low 
C)  high; high 
D)  medium; low

Question 19

Which of the following will not be included on your credit report?

Accepted Answer

A)  Social Security number 
B)  FICO score 
C)  Unpaid accounts 
D)  Companies that have recently accessed your report 
A)  Social Security number 
B)  FICO score 
C)  Unpaid accounts 
D)  Companies that have recently accessed your report

Question 20

Most identity theft victims discover the crime in a reactive as opposed to a proactive manner.

Accepted Answer

A) True 
 B)False

Exam 7: Assessing and Securing Your Credit

Which of the following will not protect you from identity theft while on vacation?

Which of the following statements is not true regarding reviewing your credit report?

Discuss the factors that are used in determining credit scoring in the FICO model.

Historical credit problems normally remain on a credit bureau's report for seven years and ten years for bankruptcy.

Posing as an employee of a brokerage firm to obtain information to allegedly update your account information is an example of

Creditors prefer a ________ level of cash inflows and ________ level of cash outflows.

Credit scores in the 500-600 range will likely result in

All of the following are correct statements about credit, except

Credit issued by department stores for relatively long periods of time is called non-installment credit.

The ________ is a document showing information reporting your payment history and past use of credit.

If you think that your identity has been stolen, the FTC recommends you do all of the following, except

Credit payment history makes up ________ of your credit score.

________, ________, and ________ are the three major credit bureaus.

When creating credit scores, credit bureaus rely on a model created by the Fair Isaac Corporation.

Credit bureau is required to investigate any report of erroneous information on your credit report within thirty days.

Using more credit than can be repaid is a primary cause of individual bankruptcies.

Historical credit problems remain on a credit bureau's report for ________ years while a bankruptcy remains for ________ years.

Creditors prefer a ________ amount of capital and ________ collateral in the best of circumstances.

Which of the following will not be included on your credit report?

Most identity theft victims discover the crime in a reactive as opposed to a proactive manner.

Overview of a Financial Plan

Planning With Personal Financial Statements

Applying Time Value Concepts

Using Tax Concepts for Planning

Banking and Interest Rates

Managing Your Money

Managing Your Credit

Personal Loans

Purchasing and Financing a Home

Auto and Homeowners Insurance

Health and Disability Insurance

Life Insurance

Investing Fundamentals

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Asset Allocation

Retirement Planning

Estate Planning

Integrating the Components of a Financial Plan

Filters

Creditors prefer a level of cash inflows and level of cash outflows.

, , and are the three major credit bureaus.

Historical credit problems remain on a credit bureau's report for years while a bankruptcy remains for years.

Creditors prefer a amount of capital and collateral in the best of circumstances.