Question 1

You are seriously overindebted if your debt payments-to-disposable income ratio is

Accepted Answer

A) 0-14 percent 
B) 15-18 percent 
C) 19-28 percent 
D) 29+ percent 
A) 0-14 percent 
B) 15-18 percent 
C) 19-28 percent 
D) 29+ percent C

Question 2

Experian,Equifax,and TransUnion are the three largest national groups of credit bureaus.

Accepted Answer

A) True 
 B)False  True

Question 3

Many offers for credit monitoring services are actually negative option plans that automatically sign you up for a credit reporting service.

Accepted Answer

A) True 
 B)False  True

Question 4

Convenience use of a credit card is justified only if the card balance is paid in full by the end of the year.

Accepted Answer

A) True 
 B)False

Question 5

The lower the annual percentage rate of interest (APR),the higher the cost of credit.

Accepted Answer

A) True 
 B)False

Question 6

Generally,consolidation loans may ____ monthly payments, ____ the interest rate on the debt or both.

Accepted Answer

A) increase; increase 
B) decrease; decrease 
C) increase; decrease 
D) decrease; increase 
A) increase; increase 
B) decrease; decrease 
C) increase; decrease 
D) decrease; increase

Question 7

Negative aspects of using credit include which of the following?

Accepted Answer

A) The use of credit allows you to own expensive products sooner. 
B) The use of credit results in the loss of financial flexibility in personal money management. 
C) The use of credit often leads to overspending. 
D) Negative aspects of using credit include both loss of financial flexibility as well as overspending. 
A) The use of credit allows you to own expensive products sooner. 
B) The use of credit results in the loss of financial flexibility in personal money management. 
C) The use of credit often leads to overspending. 
D) Negative aspects of using credit include both loss of financial flexibility as well as overspending.

Question 8

A consumer that has nonmortgage debt repayments of 10 percent or more of annual take-home pay is seriously in debt.

Accepted Answer

A) True 
 B)False

Question 9

If your credit card is lost or stolen or if you ever suspect fraudulent use of an account,you should contact each of the three national credit bureaus and have a "high-risk account holder" designation put on your file.

Accepted Answer

A) True 
 B)False

Question 10

Chapter 13 of the Bankruptcy Act provides for an immediate liquidation of assets.

Accepted Answer

A) True 
 B)False

Question 11

People slip up in building and maintaining good credit when they

Accepted Answer

A) pay more than 14 percent of disposable income toward non-mortgage debt payments. 
B) save over long periods of time. 
C) make on-time payments on credit cards. 
D) regularly check the accuracy of credit bureau files. 
A) pay more than 14 percent of disposable income toward non-mortgage debt payments. 
B) save over long periods of time. 
C) make on-time payments on credit cards. 
D) regularly check the accuracy of credit bureau files.

Question 12

The credit scores needed for credit approval vary from lender to lender.

Accepted Answer

A) True 
 B)False

Question 13

Convenience use of credit is common.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following statements is not correct regarding straight bankruptcy or Chapter 7?

Accepted Answer

A) The debtor submits a debt repayment plan to the court that is designed to repay as much of the debt as possible. 
B) Chapter 7 provides for an immediate liquidation of assets. 
C) Petitioners seeking to file Chapter 7 must pass a "means" test. 
D) Most of the bankrupt person's assets are given over to the bankruptcy trustee. 
A) The debtor submits a debt repayment plan to the court that is designed to repay as much of the debt as possible. 
B) Chapter 7 provides for an immediate liquidation of assets. 
C) Petitioners seeking to file Chapter 7 must pass a "means" test. 
D) Most of the bankrupt person's assets are given over to the bankruptcy trustee.

Question 15

Which of the following is generally not part of the process of opening a credit account?

Accepted Answer

A) Filling out a credit application 
B) Appraisal of assets 
C) Having your credit history investigated 
D) Credit scoring of your application 
A) Filling out a credit application 
B) Appraisal of assets 
C) Having your credit history investigated 
D) Credit scoring of your application

Question 16

Identity theft is the most commonly perpetrated form of consumer fraud in the U.S.

Accepted Answer

A) True 
 B)False

Question 17

The Truth in Lending Act requires lenders to state the finance charge both in dollars and as an annual percentage rate (APR).

Accepted Answer

A) True 
 B)False

Question 18

The willingness of a lender to grant you credit is a good indicator that you can afford the payments required.

Accepted Answer

A) True 
 B)False

Question 19

Dual-earner households should consider lower debt limits as a percentage of income.

Accepted Answer

A) True 
 B)False

Question 20

It is possible to still owe money after an item of collateral is repossessed for nonpayment on the debt.

Accepted Answer

A) True 
 B)False

You are seriously overindebted if your debt payments-to-disposable income ratio is

Experian,Equifax,and TransUnion are the three largest national groups of credit bureaus.

Many offers for credit monitoring services are actually negative option plans that automatically sign you up for a credit reporting service.

Convenience use of a credit card is justified only if the card balance is paid in full by the end of the year.

The lower the annual percentage rate of interest (APR),the higher the cost of credit.

Generally,consolidation loans may monthly payments, the interest rate on the debt or both.

Negative aspects of using credit include which of the following?

A consumer that has nonmortgage debt repayments of 10 percent or more of annual take-home pay is seriously in debt.

If your credit card is lost or stolen or if you ever suspect fraudulent use of an account,you should contact each of the three national credit bureaus and have a "high-risk account holder" designation put on your file.

Chapter 13 of the Bankruptcy Act provides for an immediate liquidation of assets.

People slip up in building and maintaining good credit when they

The credit scores needed for credit approval vary from lender to lender.

Convenience use of credit is common.

Which of the following statements is not correct regarding straight bankruptcy or Chapter 7?

Which of the following is generally not part of the process of opening a credit account?

Identity theft is the most commonly perpetrated form of consumer fraud in the U.S.

The Truth in Lending Act requires lenders to state the finance charge both in dollars and as an annual percentage rate (APR).

The willingness of a lender to grant you credit is a good indicator that you can afford the payments required.

Dual-earner households should consider lower debt limits as a percentage of income.

It is possible to still owe money after an item of collateral is repossessed for nonpayment on the debt.

Understanding Personal Finance

Career Planning

Financial Statements,tools,and Budgets

Managing Income Taxes

Managing Checking and Savings Accounts

Credit Cards and Consumer Loans

Vehicles and Other Major Purchases

Obtaining Affordable Housing

Managing Property and Liability Risk

Managing Health Expenses

Life Insurance Planning

Investment Fundamentals

Investing in Stocks and Bonds

Mutual Funds and Exchange Traded Funds

Real Estate and High-Risk Investments

Retirement and Estate Planning

Filters

Exam 6: Building and Maintaining Good Credit

You are seriously overindebted if your debt payments-to-disposable income ratio is

Experian,Equifax,and TransUnion are the three largest national groups of credit bureaus.

Many offers for credit monitoring services are actually negative option plans that automatically sign you up for a credit reporting service.

Convenience use of a credit card is justified only if the card balance is paid in full by the end of the year.

The lower the annual percentage rate of interest (APR),the higher the cost of credit.

Generally,consolidation loans may ____ monthly payments, ____ the interest rate on the debt or both.

Negative aspects of using credit include which of the following?

A consumer that has nonmortgage debt repayments of 10 percent or more of annual take-home pay is seriously in debt.

If your credit card is lost or stolen or if you ever suspect fraudulent use of an account,you should contact each of the three national credit bureaus and have a "high-risk account holder" designation put on your file.

Chapter 13 of the Bankruptcy Act provides for an immediate liquidation of assets.

People slip up in building and maintaining good credit when they

The credit scores needed for credit approval vary from lender to lender.

Convenience use of credit is common.

Which of the following statements is not correct regarding straight bankruptcy or Chapter 7?

Which of the following is generally not part of the process of opening a credit account?

Identity theft is the most commonly perpetrated form of consumer fraud in the U.S.

The Truth in Lending Act requires lenders to state the finance charge both in dollars and as an annual percentage rate (APR).

The willingness of a lender to grant you credit is a good indicator that you can afford the payments required.

Dual-earner households should consider lower debt limits as a percentage of income.

It is possible to still owe money after an item of collateral is repossessed for nonpayment on the debt.

Understanding Personal Finance

Career Planning

Financial Statements,tools,and Budgets

Managing Income Taxes

Managing Checking and Savings Accounts

Credit Cards and Consumer Loans

Vehicles and Other Major Purchases

Obtaining Affordable Housing

Managing Property and Liability Risk

Managing Health Expenses

Life Insurance Planning

Investment Fundamentals

Investing in Stocks and Bonds

Mutual Funds and Exchange Traded Funds

Real Estate and High-Risk Investments

Retirement and Estate Planning

Filters

Generally,consolidation loans may monthly payments, the interest rate on the debt or both.