Question 1

Credit scoring systems tend to ignore the degree to which you owe a high percentage of the available credit limits on your credit cards.

Accepted Answer

A) True 
 B)False

Question 2

Data on bankruptcy can be included in your credit file for ____ years.

Accepted Answer

A) 7 
B) 10 
C) 13 
D) 15 
A) 7 
B) 10 
C) 13 
D) 15

Question 3

Lenders are not allowed to discriminate among applicants.

Accepted Answer

A) True 
 B)False

Question 4

Loans generally require equal payments over a set period of time.

Accepted Answer

A) True 
 B)False

Question 5

Although your credit file at each of the three major credit bureaus may differ,your credit scores will be the same.

Accepted Answer

A) True 
 B)False

Question 6

Services which allow one to access his/her credit report as often as daily and obtain a personal FICO credit score is called a

Accepted Answer

A) credit score. 
B) credit-monitoring service. 
C) credit application. 
D) negative option. 
A) credit score. 
B) credit-monitoring service. 
C) credit application. 
D) negative option.

Question 7

Which of the following is the least appropriate reason for using credit?

Accepted Answer

A) To take advantage of free credit 
B) To consolidate debts 
C) To obtain an education 
D) To buy something you would likely buy soon but today it is on sale 
A) To take advantage of free credit 
B) To consolidate debts 
C) To obtain an education 
D) To buy something you would likely buy soon but today it is on sale

Question 8

You may still owe money after repossession if there is a

Accepted Answer

A) deficiency balance. 
B) contingency clause in your contract. 
C) foreclosure agreement. 
D) Chapter 7 bankruptcy. 
A) deficiency balance. 
B) contingency clause in your contract. 
C) foreclosure agreement. 
D) Chapter 7 bankruptcy.

Question 9

Having both a checking and a savings account can help one get credit and at lower rates.

Accepted Answer

A) True 
 B)False

Question 10

Bankruptcy is a constitutionally guaranteed right that permits people (and businesses) to ask a court to find them officially unable to meet their debts.

Accepted Answer

A) True 
 B)False

Question 11

What do credit bureaus do?

Accepted Answer

A) They collect and provide credit information. 
B) They lend money to people who are members of the credit bureau. 
C) They make decisions regarding who should get credit. 
D) They share information with each other. 
A) They collect and provide credit information. 
B) They lend money to people who are members of the credit bureau. 
C) They make decisions regarding who should get credit. 
D) They share information with each other.

Question 12

Which of the following is not true regarding loans based on the cash values built up in cash-value life insurance policies?

Accepted Answer

A) The interest rates are low, ranging from 4 to 6 percent. 
B) Should the insured person die before repaying the loan, the life insurance company will forgive the loan. 
C) Many people fail to pay back such loans because no fixed schedule of repayment is established. 
D) Insurance companies do not pressure borrowers to repay the debt. 
A) The interest rates are low, ranging from 4 to 6 percent. 
B) Should the insured person die before repaying the loan, the life insurance company will forgive the loan. 
C) Many people fail to pay back such loans because no fixed schedule of repayment is established. 
D) Insurance companies do not pressure borrowers to repay the debt.

Question 13

You should change the marital status linked to your credit card account should you become married,separated,or divorced.

Accepted Answer

A) True 
 B)False

Question 14

____ make both secured and unsecured small loans and require repayment on a monthly installment basis.

Accepted Answer

A) Sales finance companies 
B) Stockbrokers 
C) Consumer finance companies 
D) Insurance companies 
A) Sales finance companies 
B) Stockbrokers 
C) Consumer finance companies 
D) Insurance companies

Question 15

Perhaps the greatest disadvantage of credit use is the

Accepted Answer

A) loss of financial flexibility in personal money management. 
B) risk of overspending. 
C) reduction in future buying power due to finance charges. 
D) possibility of getting a poor credit reputation. 
A) loss of financial flexibility in personal money management. 
B) risk of overspending. 
C) reduction in future buying power due to finance charges. 
D) possibility of getting a poor credit reputation.

Question 16

A debt management plan is an arrangement whereby the consumer makes monthly payments that are distributed to each creditor.

Accepted Answer

A) True 
 B)False

Question 17

Misusing credit and not paying bills on time can damage employment prospects.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following items is least appropriate to purchase with a credit card unless you will pay the bill in full when the statement is received?

Accepted Answer

A) A new suit 
B) Groceries 
C) Microwave oven 
D) Smart phone 
A) A new suit 
B) Groceries 
C) Microwave oven 
D) Smart phone

Question 19

Invitation-to-apply is a credit card offer sent without any prior screening.

Accepted Answer

A) True 
 B)False

Question 20

Interest is the charge for the privilege of borrowing money.

Accepted Answer

A) True 
 B)False

Credit scoring systems tend to ignore the degree to which you owe a high percentage of the available credit limits on your credit cards.

Data on bankruptcy can be included in your credit file for ____ years.

Lenders are not allowed to discriminate among applicants.

Loans generally require equal payments over a set period of time.

Although your credit file at each of the three major credit bureaus may differ,your credit scores will be the same.

Services which allow one to access his/her credit report as often as daily and obtain a personal FICO credit score is called a

Which of the following is the least appropriate reason for using credit?

You may still owe money after repossession if there is a

Having both a checking and a savings account can help one get credit and at lower rates.

Bankruptcy is a constitutionally guaranteed right that permits people (and businesses) to ask a court to find them officially unable to meet their debts.

What do credit bureaus do?

Which of the following is not true regarding loans based on the cash values built up in cash-value life insurance policies?

You should change the marital status linked to your credit card account should you become married,separated,or divorced.

____ make both secured and unsecured small loans and require repayment on a monthly installment basis.

Perhaps the greatest disadvantage of credit use is the

A debt management plan is an arrangement whereby the consumer makes monthly payments that are distributed to each creditor.

Misusing credit and not paying bills on time can damage employment prospects.

Which of the following items is least appropriate to purchase with a credit card unless you will pay the bill in full when the statement is received?

Invitation-to-apply is a credit card offer sent without any prior screening.

Interest is the charge for the privilege of borrowing money.

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

Credit scoring systems tend to ignore the degree to which you owe a high percentage of the available credit limits on your credit cards.

Data on bankruptcy can be included in your credit file for ____ years.

Lenders are not allowed to discriminate among applicants.

Loans generally require equal payments over a set period of time.

Although your credit file at each of the three major credit bureaus may differ,your credit scores will be the same.

Services which allow one to access his/her credit report as often as daily and obtain a personal FICO credit score is called a

Which of the following is the least appropriate reason for using credit?

You may still owe money after repossession if there is a

Having both a checking and a savings account can help one get credit and at lower rates.

Bankruptcy is a constitutionally guaranteed right that permits people (and businesses) to ask a court to find them officially unable to meet their debts.

What do credit bureaus do?

Which of the following is not true regarding loans based on the cash values built up in cash-value life insurance policies?

You should change the marital status linked to your credit card account should you become married,separated,or divorced.

____ make both secured and unsecured small loans and require repayment on a monthly installment basis.

Perhaps the greatest disadvantage of credit use is the

A debt management plan is an arrangement whereby the consumer makes monthly payments that are distributed to each creditor.

Misusing credit and not paying bills on time can damage employment prospects.

Which of the following items is least appropriate to purchase with a credit card unless you will pay the bill in full when the statement is received?

Invitation-to-apply is a credit card offer sent without any prior screening.

Interest is the charge for the privilege of borrowing money.

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