Question 1

Which of the following is not an example of revolving credit?

Accepted Answer

A) overdraft protection 
B) charge cards 
C) mortgage 
D) line of credit. 
E) bank card credit 
A) overdraft protection 
B) charge cards 
C) mortgage 
D) line of credit. 
E) bank card credit C

Question 2

In determining your credit capacity, you first provide for basic necessities, such as

Accepted Answer

A) furniture. 
B) home furnishings. 
C) mortgage or rent. 
D) automobile. 
E) durable goods. 
A) furniture. 
B) home furnishings. 
C) mortgage or rent. 
D) automobile. 
E) durable goods. C

Question 3

What is not a type of revolving credit?

Accepted Answer

A) Credit cards 
B) Lines of credit 
C) Overdraft protection 
D) Mortgages 
E) Charge cards 
A) Credit cards 
B) Lines of credit 
C) Overdraft protection 
D) Mortgages 
E) Charge cards D

Question 4

There are very few valid reasons for using credit.

Accepted Answer

A) True 
 B)False

Question 5

A good example of an open-end credit is

Accepted Answer

A) the use of a bank credit card to make a purchase. 
B) the mortgage loan from a savings and loan institution. 
C) automobile loan from a credit union. 
D) installment loan from a furniture store. 
E) installment loan for purchasing a major appliance. 
A) the use of a bank credit card to make a purchase. 
B) the mortgage loan from a savings and loan institution. 
C) automobile loan from a credit union. 
D) installment loan from a furniture store. 
E) installment loan for purchasing a major appliance.

Question 6

What would your credit rating be if you pay between 60 and 90 days from the due date, or not more than three payments late?

Accepted Answer

A) R5 
B) R2 
C) R6 
D) R3 
E) R9 
A) R5 
B) R2 
C) R6 
D) R3 
E) R9

Question 7

Department stores and gasoline companies are good places to obtain your first credit card.

Accepted Answer

A) True 
 B)False

Question 8

If your put a trip on your credit card that charges you an APR of 19.99% and make the minimum monthly payment of $45 how much interest will you pay once the credit card debt is totally paid off (round to the nearest dollar)?

Accepted Answer

A) $2,207 
B) $1,948 
C) $1,500 
D) $3,121 
E) $$435 
A) $2,207 
B) $1,948 
C) $1,500 
D) $3,121 
E) $$435

Question 9

Which of these is not a characteristic of Paypal?

Accepted Answer

A) Facilitates online auction payments. 
B) Offers password protected accounts. 
C) Allows use of credit cards. 
D) Transfers funds in U.S.dollars. 
E) No annual fees. 
A) Facilitates online auction payments. 
B) Offers password protected accounts. 
C) Allows use of credit cards. 
D) Transfers funds in U.S.dollars. 
E) No annual fees.

Question 10

Most creditors rely heavily on borrowers' bank reports when considering loan applications.

Accepted Answer

A) True 
 B)False

Question 11

A personal line of credit is a

Accepted Answer

A) credit arrangement that has no extra costs. 
B) prearranged loan for a specified amount that you can use by writing a special check. 
C) credit arrangement that has no specific repayment plan. 
D) synonym for installment cash credit. 
E) synonym for single lump-sum credit. 
A) credit arrangement that has no extra costs. 
B) prearranged loan for a specified amount that you can use by writing a special check. 
C) credit arrangement that has no specific repayment plan. 
D) synonym for installment cash credit. 
E) synonym for single lump-sum credit.

Question 12

What is not consideration of credit history (as part of the 5 Cs of credit)?

Accepted Answer

A) Salary 
B) Previous credit 
C) Do you pay your bills on time 
D) Do you live within yours means 
E) Have you filed for bankruptcy? 
A) Salary 
B) Previous credit 
C) Do you pay your bills on time 
D) Do you live within yours means 
E) Have you filed for bankruptcy?

Question 13

The debt-payment-to-income ratio is calculated by dividing your total liabilities by your net worth.

Accepted Answer

A) True 
 B)False

Question 14

What percentage of your VantageScore is based on recent credit?

Accepted Answer

A) 30% 
B) 28% 
C) 23% 
D) 9% 
E) 1% 
A) 30% 
B) 28% 
C) 23% 
D) 9% 
E) 1%

Question 15

Although credit permits more immediate satisfaction of needs and desires, it

Accepted Answer

A) does increase total purchasing power. 
B) is always best to avoid credit purchases. 
C) does not diminish your ability to buy more goods and services on credit. 
D) has no opportunity costs attached to it. 
E) does not increase total purchasing power 
A) does increase total purchasing power. 
B) is always best to avoid credit purchases. 
C) does not diminish your ability to buy more goods and services on credit. 
D) has no opportunity costs attached to it. 
E) does not increase total purchasing power

Question 16

The use of credit can provide up to a 45 day "float."

Accepted Answer

A) True 
 B)False

Question 17

Which of these is not a financing option for the purchase of a car?

Accepted Answer

A) factory financing 
B) line of credit 
C) conditional sales contract 
D) installment loan 
E) cash 
A) factory financing 
B) line of credit 
C) conditional sales contract 
D) installment loan 
E) cash

Question 18

Which of the following agencies can produce for a subscribing creditor, almost instantaneously, a report about your past and present credit activity?

Accepted Answer

A) The Bank of Canada 
B) The Canada Customs and Revenue Agency 
C) Your financial institution 
D) A debit bureau 
E) A credit bureau 
A) The Bank of Canada 
B) The Canada Customs and Revenue Agency 
C) Your financial institution 
D) A debit bureau 
E) A credit bureau

Question 19

If your credit application is denied, you

Accepted Answer

A) can sue the credit rating agency. 
B) can file a complaint against the merchant. 
C) don't have any rights provided by law. 
D) should ask to know specifically why. 
E) can reapply for credit after 30 days. 
A) can sue the credit rating agency. 
B) can file a complaint against the merchant. 
C) don't have any rights provided by law. 
D) should ask to know specifically why. 
E) can reapply for credit after 30 days.

Question 20

A personal line of credit is a pre-arranged loan for a specified amount that you can use by writing a special check.

Accepted Answer

A) True 
 B)False

Which of the following is not an example of revolving credit?

In determining your credit capacity, you first provide for basic necessities, such as

What is not a type of revolving credit?

There are very few valid reasons for using credit.

A good example of an open-end credit is

What would your credit rating be if you pay between 60 and 90 days from the due date, or not more than three payments late?

Department stores and gasoline companies are good places to obtain your first credit card.

If your put a trip on your credit card that charges you an APR of 19.99% and make the minimum monthly payment of $45 how much interest will you pay once the credit card debt is totally paid off (round to the nearest dollar)?

Which of these is not a characteristic of Paypal?

Most creditors rely heavily on borrowers' bank reports when considering loan applications.

A personal line of credit is a

What is not consideration of credit history (as part of the 5 Cs of credit)?

The debt-payment-to-income ratio is calculated by dividing your total liabilities by your net worth.

What percentage of your VantageScore is based on recent credit?

Although credit permits more immediate satisfaction of needs and desires, it

The use of credit can provide up to a 45 day "float."

Which of these is not a financing option for the purchase of a car?

Which of the following agencies can produce for a subscribing creditor, almost instantaneously, a report about your past and present credit activity?

If your credit application is denied, you

A personal line of credit is a pre-arranged loan for a specified amount that you can use by writing a special check.

Personal Financial Planning: An Introduction

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

Banking Services of Financial Institutions

Choosing a Source of Credit: The Costs of Credit Alternatives

The Finances of Housing

Home and Automobile Insurance

Life, Health, and Disability Insurance

Fundamentals of Investing

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Retirement Planning

Estate Planning

Filters

Exam 5: Introduction to Consumer Credit

Which of the following is not an example of revolving credit?

In determining your credit capacity, you first provide for basic necessities, such as

What is not a type of revolving credit?

There are very few valid reasons for using credit.

A good example of an open-end credit is

What would your credit rating be if you pay between 60 and 90 days from the due date, or not more than three payments late?

Department stores and gasoline companies are good places to obtain your first credit card.

If your put a trip on your credit card that charges you an APR of 19.99% and make the minimum monthly payment of $45 how much interest will you pay once the credit card debt is totally paid off (round to the nearest dollar)?

Which of these is not a characteristic of Paypal?

Most creditors rely heavily on borrowers' bank reports when considering loan applications.

A personal line of credit is a

What is not consideration of credit history (as part of the 5 Cs of credit)?

The debt-payment-to-income ratio is calculated by dividing your total liabilities by your net worth.

What percentage of your VantageScore is based on recent credit?

Although credit permits more immediate satisfaction of needs and desires, it

The use of credit can provide up to a 45 day "float."

Which of these is not a financing option for the purchase of a car?

Which of the following agencies can produce for a subscribing creditor, almost instantaneously, a report about your past and present credit activity?

If your credit application is denied, you

A personal line of credit is a pre-arranged loan for a specified amount that you can use by writing a special check.

Personal Financial Planning: An Introduction

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

Banking Services of Financial Institutions

Choosing a Source of Credit: The Costs of Credit Alternatives

The Finances of Housing

Home and Automobile Insurance

Life, Health, and Disability Insurance

Fundamentals of Investing

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Retirement Planning

Estate Planning

Filters