Question 1

Credit is a term used to describe any situation in which goods,services,or money is received in exchange for a promise to repay at a future date.

Accepted Answer

A) True 
 B)False

Question 2

If information in your credit report is proved to be erroneous,it must be corrected by the credit bureau.

Accepted Answer

A) True 
 B)False

Question 3

Credit card blocking is the process whereby the merchant may notify the credit card issuer to put a hold on your account for the anticipated total amount of the charge.

Accepted Answer

A) True 
 B)False

Question 4

A debt-to-equity method provides a quick idea of one's financial solvency.The larger the ratio,the riskier the likelihood of repayment.

Accepted Answer

A) True 
 B)False

Question 5

Lending designed specifically for borrowers with low credit scores is called

Accepted Answer

A) predatory lending. 
B) subprime lending. 
C) bail-out lending. 
D) credit rebuilding. 
A) predatory lending. 
B) subprime lending. 
C) bail-out lending. 
D) credit rebuilding.

Question 6

The three digit code on the back of a credit card that helps protect against unauthorized use of the card is called its card verification value

Accepted Answer

A) True 
 B)False

Question 7

It is a smart move to consolidate all your student loans into one loan once you graduate from college.

Accepted Answer

A) True 
 B)False

Question 8

The higher your credit score the more you will pay for credit.

Accepted Answer

A) True 
 B)False

Question 9

The most commonly used forms of credit by consumers are loans and credit cards.

Accepted Answer

A) True 
 B)False

Question 10

A borrower with an excellent credit history would be most likely to receive credit with

Accepted Answer

A) higher credit limits. 
B) lower interest rates. 
C) variable interest rates. 
D) both higher credit limits and lower interest rates. 
A) higher credit limits. 
B) lower interest rates. 
C) variable interest rates. 
D) both higher credit limits and lower interest rates.

Question 11

Under the continuous-debt method of determining whether you are carrying too much debt you should be able to get out of all debt except mortgage debt completely within four years.

Accepted Answer

A) True 
 B)False

Question 12

Standardization of credit figures (total finance charge in dollars and the annual percentage rate of interest) is required by the

Accepted Answer

A) Fair Credit Reporting Act. 
B) Truth in Lending Act. 
C) Fair Credit Billing Act. 
D) Equal Credit Opportunity Act. 
A) Fair Credit Reporting Act. 
B) Truth in Lending Act. 
C) Fair Credit Billing Act. 
D) Equal Credit Opportunity Act.

Question 13

People can use credit to take advantage of "free" credit.

Accepted Answer

A) True 
 B)False

Question 14

The additional dollar cost for using credit is referred to as the APR.

Accepted Answer

A) True 
 B)False

Question 15

Your continuing record of credit usage is called your credit

Accepted Answer

A) history. 
B) score. 
C) rating. 
D) pattern. 
A) history. 
B) score. 
C) rating. 
D) pattern.

Question 16

Bankruptcy remains on one's credit record for seven years.

Accepted Answer

A) True 
 B)False

Question 17

Under the concept of ____,lenders may offer lower interest rates to applicants with the highest credit scores while charging steeper rates to more-risky applicants.

Accepted Answer

A) credit 
B) tiered pricing 
C) introductory period 
D) default 
A) credit 
B) tiered pricing 
C) introductory period 
D) default

Question 18

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

Accepted Answer

A) To enjoy the grace period of 21 days on new credit card purchases 
B) To spend more money than what is possible 
C) To take care of the future 
D) To achieve financial goals 
A) To enjoy the grace period of 21 days on new credit card purchases 
B) To spend more money than what is possible 
C) To take care of the future 
D) To achieve financial goals

Question 19

The actual decision to grant credit is made by a credit bureau.

Accepted Answer

A) True 
 B)False

Question 20

If the credit bureau refuses to make a correction to an error in your file,you may wish to provide your version of the disputed information by adding a consumer statement to your credit bureau file.

Accepted Answer

A) True 
 B)False

Credit is a term used to describe any situation in which goods,services,or money is received in exchange for a promise to repay at a future date.

If information in your credit report is proved to be erroneous,it must be corrected by the credit bureau.

Credit card blocking is the process whereby the merchant may notify the credit card issuer to put a hold on your account for the anticipated total amount of the charge.

A debt-to-equity method provides a quick idea of one's financial solvency.The larger the ratio,the riskier the likelihood of repayment.

Lending designed specifically for borrowers with low credit scores is called

The three digit code on the back of a credit card that helps protect against unauthorized use of the card is called its card verification value

It is a smart move to consolidate all your student loans into one loan once you graduate from college.

The higher your credit score the more you will pay for credit.

The most commonly used forms of credit by consumers are loans and credit cards.

A borrower with an excellent credit history would be most likely to receive credit with

Under the continuous-debt method of determining whether you are carrying too much debt you should be able to get out of all debt except mortgage debt completely within four years.

Standardization of credit figures (total finance charge in dollars and the annual percentage rate of interest) is required by the

People can use credit to take advantage of "free" credit.

The additional dollar cost for using credit is referred to as the APR.

Your continuing record of credit usage is called your credit

Bankruptcy remains on one's credit record for seven years.

Under the concept of ____,lenders may offer lower interest rates to applicants with the highest credit scores while charging steeper rates to more-risky applicants.

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

The actual decision to grant credit is made by a credit bureau.

If the credit bureau refuses to make a correction to an error in your file,you may wish to provide your version of the disputed information by adding a consumer statement to your credit bureau file.

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

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Exam 6: Building and Maintaining Good Credit

Credit is a term used to describe any situation in which goods,services,or money is received in exchange for a promise to repay at a future date.

If information in your credit report is proved to be erroneous,it must be corrected by the credit bureau.

Credit card blocking is the process whereby the merchant may notify the credit card issuer to put a hold on your account for the anticipated total amount of the charge.

A debt-to-equity method provides a quick idea of one's financial solvency.The larger the ratio,the riskier the likelihood of repayment.

Lending designed specifically for borrowers with low credit scores is called

The three digit code on the back of a credit card that helps protect against unauthorized use of the card is called its card verification value

It is a smart move to consolidate all your student loans into one loan once you graduate from college.

The higher your credit score the more you will pay for credit.

The most commonly used forms of credit by consumers are loans and credit cards.

A borrower with an excellent credit history would be most likely to receive credit with

Under the continuous-debt method of determining whether you are carrying too much debt you should be able to get out of all debt except mortgage debt completely within four years.

Standardization of credit figures (total finance charge in dollars and the annual percentage rate of interest) is required by the

People can use credit to take advantage of "free" credit.

The additional dollar cost for using credit is referred to as the APR.

Your continuing record of credit usage is called your credit

Bankruptcy remains on one's credit record for seven years.

Under the concept of ____,lenders may offer lower interest rates to applicants with the highest credit scores while charging steeper rates to more-risky applicants.

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

The actual decision to grant credit is made by a credit bureau.

If the credit bureau refuses to make a correction to an error in your file,you may wish to provide your version of the disputed information by adding a consumer statement to your credit bureau file.

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