Question 1

A credit arrangement that has no extra costs and no specific repayment plan is called

Accepted Answer

A) installment sales credit. 
B) incidental credit. 
C) line of credit. 
D) single lump-sum credit. 
E) revolving check credit. 
A) installment sales credit. 
B) incidental credit. 
C) line of credit. 
D) single lump-sum credit. 
E) revolving check credit.

Question 2

A car loan is an example of a consumer loan.

Accepted Answer

A) True 
 B)False

Question 3

If you have incorrect information in your credit file,

Accepted Answer

A) you can't really do much about it. 
B) you have no legal remedies. 
C) credit bureaus are not required to change it. 
D) there are legal remedies available to you. 
E) don't worry much because you will still get the credit. 
A) you can't really do much about it. 
B) you have no legal remedies. 
C) credit bureaus are not required to change it. 
D) there are legal remedies available to you. 
E) don't worry much because you will still get the credit.

Question 4

Cobranding is the linking of a credit card with a business trade name offering "points" or premiums toward the purchase of a product or service.

Accepted Answer

A) True 
 B)False

Question 5

In evaluating your credit application, a lender may

Accepted Answer

A) ask your age. 
B) want to know if you are on public assistance. 
C) require your marriage certificate. 
D) ask if you are married or divorced. 
E) ask your race and nationality. 
A) ask your age. 
B) want to know if you are on public assistance. 
C) require your marriage certificate. 
D) ask if you are married or divorced. 
E) ask your race and nationality.

Question 6

The debt-to-equity ratio is calculated by dividing your monthly debt payments (not including house payments) by your net worth.

Accepted Answer

A) True 
 B)False

Question 7

Which of these is not a true statement? To avoid online fraud, you should __________.

Accepted Answer

A) keep your personal information private. 
B) review your monthly bank and credit card statements. 
C) give your password only to your internet service provider. 
D) use a secure browser. 
E) give payment information only to know known businesses. 
A) keep your personal information private. 
B) review your monthly bank and credit card statements. 
C) give your password only to your internet service provider. 
D) use a secure browser. 
E) give payment information only to know known businesses.

Question 8

What percentage of your VantageScore is based on credit use?

Accepted Answer

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

Question 9

What is step one of the steps to resolve a billing dispute?

Accepted Answer

A) Phone call 
B) Letter 
C) Other alternative 
D) Contact an ombudsman 
E) Contact a lawyer 
A) Phone call 
B) Letter 
C) Other alternative 
D) Contact an ombudsman 
E) Contact a lawyer

Question 10

A valuable asset pledged to assure loan payments and subject to seizure upon default is called

Accepted Answer

A) capacity. 
B) character. 
C) capital. 
D) collateral. 
E) conditions. 
A) capacity. 
B) character. 
C) capital. 
D) collateral. 
E) conditions.

Question 11

Experts suggest that you spend no more than 20 percent of your net income on credit payments.(However, 15 percent is much better.)

Accepted Answer

A) True 
 B)False

Question 12

By paying cash for a purchase, you

Accepted Answer

A) forgo the opportunity to keep the cash in an interest-bearing account. 
B) always get a cash discount. 
C) can build a better credit rating. 
D) get better personal service from store employees. 
E) have a better selection of goods than if you use credit. 
A) forgo the opportunity to keep the cash in an interest-bearing account. 
B) always get a cash discount. 
C) can build a better credit rating. 
D) get better personal service from store employees. 
E) have a better selection of goods than if you use credit.

Question 13

With an open-end credit, you pay back one-time loans in a specified period of time in equal amounts.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is not an example of a consumer loan?

Accepted Answer

A) home mortgage 
B) automobile loan 
C) revolving credit 
D) debt consolidation installment loan 
E) demand loan 
A) home mortgage 
B) automobile loan 
C) revolving credit 
D) debt consolidation installment loan 
E) demand loan

Question 15

There is always a transaction fee attached to make a cash advance.

Accepted Answer

A) True 
 B)False

Question 16

A common example of a consumer loan is:

Accepted Answer

A) a credit card issued by a department store. 
B) a credit card issued by VISA or MasterCard. 
C) using overdraft protection at a bank. 
D) using a cashier's check to pay for a purchase. 
E) a mortgage loan. 
A) a credit card issued by a department store. 
B) a credit card issued by VISA or MasterCard. 
C) using overdraft protection at a bank. 
D) using a cashier's check to pay for a purchase. 
E) a mortgage loan.

Question 17

If there is incorrect information in your credit file,

Accepted Answer

A) you should sue the credit bureau. 
B) you must sue the merchant who denied the credit. 
C) the credit bureau must reinvestigate and modify or remove inaccurate data. 
D) pray that the credit bureau goes bankrupt. 
E) you cannot dispute the derogatory information. 
A) you should sue the credit bureau. 
B) you must sue the merchant who denied the credit. 
C) the credit bureau must reinvestigate and modify or remove inaccurate data. 
D) pray that the credit bureau goes bankrupt. 
E) you cannot dispute the derogatory information.

Question 18

Generally, most of the information in your credit file may be reported for only 3 years.

Accepted Answer

A) True 
 B)False

Question 19

If your identity is stolen you should

Accepted Answer

A) Contact the fraud departments of each of the two credit bureaus. 
B) Contact the creditors for any accounts that have been tampered with or opened fraudulently. 
C) File a police report 
D) Keep a copy of the police report 
E) Take all of the actions indicated 
A) Contact the fraud departments of each of the two credit bureaus. 
B) Contact the creditors for any accounts that have been tampered with or opened fraudulently. 
C) File a police report 
D) Keep a copy of the police report 
E) Take all of the actions indicated

Question 20

What is step three of the steps to resolve a billing dispute?

Accepted Answer

A) Phone call 
B) Letter 
C) Other alternative 
D) Contact an ombudsman 
E) Contact a lawyer 
A) Phone call 
B) Letter 
C) Other alternative 
D) Contact an ombudsman 
E) Contact a lawyer

A credit arrangement that has no extra costs and no specific repayment plan is called

A car loan is an example of a consumer loan.

If you have incorrect information in your credit file,

Cobranding is the linking of a credit card with a business trade name offering "points" or premiums toward the purchase of a product or service.

In evaluating your credit application, a lender may

The debt-to-equity ratio is calculated by dividing your monthly debt payments (not including house payments) by your net worth.

Which of these is not a true statement? To avoid online fraud, you should __________.

What percentage of your VantageScore is based on credit use?

What is step one of the steps to resolve a billing dispute?

A valuable asset pledged to assure loan payments and subject to seizure upon default is called

Experts suggest that you spend no more than 20 percent of your net income on credit payments.(However, 15 percent is much better.)

By paying cash for a purchase, you

With an open-end credit, you pay back one-time loans in a specified period of time in equal amounts.

Which of the following is not an example of a consumer loan?

There is always a transaction fee attached to make a cash advance.

A common example of a consumer loan is:

If there is incorrect information in your credit file,

Generally, most of the information in your credit file may be reported for only 3 years.

If your identity is stolen you should

What is step three of the steps to resolve a billing dispute?

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

A credit arrangement that has no extra costs and no specific repayment plan is called

A car loan is an example of a consumer loan.

If you have incorrect information in your credit file,

Cobranding is the linking of a credit card with a business trade name offering "points" or premiums toward the purchase of a product or service.

In evaluating your credit application, a lender may

The debt-to-equity ratio is calculated by dividing your monthly debt payments (not including house payments) by your net worth.

Which of these is not a true statement? To avoid online fraud, you should __________.

What percentage of your VantageScore is based on credit use?

What is step one of the steps to resolve a billing dispute?

A valuable asset pledged to assure loan payments and subject to seizure upon default is called

Experts suggest that you spend no more than 20 percent of your net income on credit payments.(However, 15 percent is much better.)

By paying cash for a purchase, you

With an open-end credit, you pay back one-time loans in a specified period of time in equal amounts.

Which of the following is not an example of a consumer loan?

There is always a transaction fee attached to make a cash advance.

A common example of a consumer loan is:

If there is incorrect information in your credit file,

Generally, most of the information in your credit file may be reported for only 3 years.

If your identity is stolen you should

What is step three of the steps to resolve a billing dispute?

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