Exam 6: Using Credit Cards: The Role of Open Credit
Exam 1: The Financial Planning Process101 Questions
Exam 2: Measuring Your Financial Health and Making a Plan117 Questions
Exam 3: Understanding and Appreciating the Time Value of Money122 Questions
Exam 4: Tax Planning and Strategies129 Questions
Exam 5: Cash or Liquid Asset Management110 Questions
Exam 6: Using Credit Cards: The Role of Open Credit153 Questions
Exam 7: Student and Consumer Loans: The Role of Planned Borrowing125 Questions
Exam 8: The Home and Automobile Decision199 Questions
Exam 9: Life and Health Insurance212 Questions
Exam 10: Property and Liability Insurance147 Questions
Exam 11: Investment Basics309 Questions
Exam 12: Investing in Stocks178 Questions
Exam 13: Investing in Bonds and Other Alternatives137 Questions
Exam 14: Mutual Funds: An Easy Way to Diversify136 Questions
Exam 15: Retirement Planning147 Questions
Exam 16: Estate Planning: Saving Your Heirs Money and Headaches106 Questions
Exam 17: Financial Life Events Fitting the Pieces Together81 Questions
Select questions type
Wally currently has a balance of $14,500 on his credit cards and he is having a hard time making the minimum payments on them.He has missed several payments and is now paying the default APR of 29.99%.He and his wife own a nice home with $40,000 in equity.They have $7,500 in a certificate of deposit with a 4% APR.He has come to you in tears asking for advice.What would you tell him to do?
Free
(Multiple Choice)
4.8/5
(32)
Correct Answer:
E
Everyone who accessed your credit report within the last seven years appears in an "inquiry" list that appears on your credit report.
Free
(True/False)
4.9/5
(35)
Correct Answer:
False
List five signs that you have the credit card habit.
Free
(Essay)
4.9/5
(44)
Correct Answer:
- You only make the minimum payment each month.
- You have reached the credit/spending limit on one or more cards.
- You are using savings to pay for credit card payments.
- You do not keep track of your credit card spending as it occurs.
- You get cash advances because there is not enough money in your checking account.
A(n)________ card is a credit card that does not offer revolving credit and requires full payment of the balance at the end of each month.
(Multiple Choice)
4.8/5
(39)
Monty currently has a Visa card from his bank with the following terms: 18% on purchases, 24% on cash advances with a 4% cash advance fee on the amount, and a default or penalty rate of 36%. His current statement shows a balance of $6,000. So far he has only taken one cash advance, withdrawing $1,000 from a casino in Las Vegas a year ago, which he has already paid off. Lately he has been having a hard time paying more than the minimum payment of 4% of his balance. The only assets he owns are a seven-year-old car and a $2,500 certificate of deposit that has a 5% APR.
-If Monty buys a new television for $800 this month and sends in a credit card payment of $1,200 when he gets his statement,how much interest will he pay on the television for the month?
(Multiple Choice)
4.8/5
(41)
It is against the law for your potential employer to use your credit score for employment considerations.
(True/False)
4.8/5
(28)
Credit card insurance is usually unnecessary since your liability on credit card losses is limited by law to
(Multiple Choice)
4.9/5
(38)
Using your credit card for a cash advance in an emergency is probably a good idea.Using cash advances for non-emergencies is a terrible idea.Explain the characteristics that make cash advances very dangerous.
(Essay)
4.8/5
(31)
Teaser rates are very low.How long do they last? Is there any real benefit in them?
(Essay)
4.9/5
(40)
Which of the following apply to getting a cash advance with a credit card?
(Multiple Choice)
4.9/5
(28)
Monty currently has a Visa card from his bank with the following terms: 18% on purchases, 24% on cash advances with a 4% cash advance fee on the amount, and a default or penalty rate of 36%. His current statement shows a balance of $6,000. So far he has only taken one cash advance, withdrawing $1,000 from a casino in Las Vegas a year ago, which he has already paid off. Lately he has been having a hard time paying more than the minimum payment of 4% of his balance. The only assets he owns are a seven-year-old car and a $2,500 certificate of deposit that has a 5% APR.
-What will be Monty's minimum payment due?
(Multiple Choice)
5.0/5
(44)
People with high credit card balances still need to invest money on a regular basis.
(True/False)
4.9/5
(33)
How long do you have to begin an investigation into a billing problem under the Fair Credit Billing Act?
(Multiple Choice)
4.9/5
(39)
Susan has always maintained an excellent credit rating over the years. She has an annual income of $63,000, has lived at her current residence thirteen years, and has worked at the same job for eight years. Susan works in a clerical position, has two credit cards and maintains two bank accounts. Susan is very conservative and has all of her savings ($12,000) in a NOW account at her local bank. One of her credit cards has a balance of $550 and has an APR of 23%. Susan has been making monthly minimum payments on the credit card. Out of curiosity she would like to know how her credit card companies judge her creditworthiness and what she can do to improve her financial situation.
-What should Susan do in regards to her credit card balance?
(Multiple Choice)
4.8/5
(42)
What four steps should you take if you think your identity has been stolen?
(Essay)
4.8/5
(47)
On October 1st Joe charged $900 to his credit card,on October 10th he charged another $1,300 to his credit card,and on October 15th he charged an additional $100.His credit card charges him an Annual Percentage Rate (APR)of 18% compounded monthly.Using the Average Daily Balance Method calculate Joe's finance charge for the month of October.
(Multiple Choice)
4.9/5
(38)
Monty currently has a Visa card from his bank with the following terms: 18% on purchases, 24% on cash advances with a 4% cash advance fee on the amount, and a default or penalty rate of 36%. His current statement shows a balance of $6,000. So far he has only taken one cash advance, withdrawing $1,000 from a casino in Las Vegas a year ago, which he has already paid off. Lately he has been having a hard time paying more than the minimum payment of 4% of his balance. The only assets he owns are a seven-year-old car and a $2,500 certificate of deposit that has a 5% APR.
-It is now three months later and Monty has missed two payments in a row and he is now paying the default or penalty rate on his balance.How much interest per month will Monty be accruing on his unpaid balance?
(Multiple Choice)
4.8/5
(44)
Showing 1 - 20 of 153
Filters
- Essay(0)
- Multiple Choice(0)
- Short Answer(0)
- True False(0)
- Matching(0)