Question 1

If your debt-to-equity ratio is about ½, you have reached the upper limit of debt obligations.

Accepted Answer

A) True 
 B)False

Question 2

Experts suggest that you spend no more than ____________ percent of your net income on credit purchases.

Accepted Answer

A) 10 
B) 20 
C) 30 
D) 40 
E) 50 
A) 10 
B) 20 
C) 30 
D) 40 
E) 50

Question 3

In the near future, smart cards will provide a crucial link between the World Wide Web and the physical world.

Accepted Answer

A) True 
 B)False

Question 4

A credit file is a report which includes the individual's present employer and position, former employer(s), public records and a list of cheques returned for insufficient funds.

Accepted Answer

A) True 
 B)False

Question 5

Your friends and neighbors can get credit information about you.

Accepted Answer

A) True 
 B)False

Question 6

You should sign your new credit cards as soon as they arrive.

Accepted Answer

A) True 
 B)False

Question 7

It is legal for creditors to ask or assume anything about a woman's childbearing plans.

Accepted Answer

A) True 
 B)False

Question 8

What would your credit rating be if you are making regular payments through a special arrangement to settle your debts?

Accepted Answer

A) R5 
B) R2 
C) R6 
D) R7 
E) R9 
A) R5 
B) R2 
C) R6 
D) R7 
E) R9

Question 9

Incidental credit is a credit arrangement that has no extra costs and no specific repayment plan.

Accepted Answer

A) True 
 B)False

Question 10

In a closed-end credit, loans are made on a continuous basis and you make at least partial payment.

Accepted Answer

A) True 
 B)False

Question 11

If your debt-to-equity ratio is about 1, you have probably reached the upper limit of debt obligations.

Accepted Answer

A) True 
 B)False

Question 12

Debt-to-equity ratio is

Accepted Answer

A) a useless ratio for determining your credit capacity. 
B) calculated by dividing monthly debt payments by net monthly income. 
C) determined by dividing your assets by liabilities. 
D) calculated by dividing total liabilities by net worth. 
E) rarely used by creditors in determining credit worthiness. 
A) a useless ratio for determining your credit capacity. 
B) calculated by dividing monthly debt payments by net monthly income. 
C) determined by dividing your assets by liabilities. 
D) calculated by dividing total liabilities by net worth. 
E) rarely used by creditors in determining credit worthiness.

Question 13

The advantages of credit include

Accepted Answer

A) can purchase goods even when funds are low 
B) carrying credit cards is safer than carrying cash 
C) a credit card can allow you to carry up to a 30 day "float 
D) credit cards may be used for identification when cashing a cheque 
E) all of these are advantages of credit 
A) can purchase goods even when funds are low 
B) carrying credit cards is safer than carrying cash 
C) a credit card can allow you to carry up to a 30 day "float 
D) credit cards may be used for identification when cashing a cheque 
E) all of these are advantages of credit

Question 14

The best way to maintain your credit standing is to:

Accepted Answer

A) carry no credit cards 
B) pay all credit card invoices within 120 days 
C) repay your debts on time 
D) cancel any cars with outstanding balances 
E) if the balance is high and you cannot pay, claim your card was lost and misused by a 3rdparty 
A) carry no credit cards 
B) pay all credit card invoices within 120 days 
C) repay your debts on time 
D) cancel any cars with outstanding balances 
E) if the balance is high and you cannot pay, claim your card was lost and misused by a 3rdparty

Question 15

A home equity loan is usually set up as a revolving line of credit, typically with a variable interest rate.

Accepted Answer

A) True 
 B)False

Question 16

Most consumers have only one choice in financing current purchases.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is considered to be a consumer loan?

Accepted Answer

A) Debit card 
B) Credit loan 
C) Personal line of credit 
D) Overdraft protection 
E) Mortgage loan 
A) Debit card 
B) Credit loan 
C) Personal line of credit 
D) Overdraft protection 
E) Mortgage loan

Question 18

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

Accepted Answer

A) a line of credit. 
B) a credit card loan. 
C) overdraft protection. 
D) charge cards. 
E) automobile loans. 
A) a line of credit. 
B) a credit card loan. 
C) overdraft protection. 
D) charge cards. 
E) automobile loans.

Question 19

Debt payments-to-income ratio is

Accepted Answer

A) calculated by dividing total liabilities by net worth. 
B) calculated by dividing monthly debt payments (not including house payments) by net monthly income. 
C) determined by dividing your assets into liabilities. 
D) a useless ratio for determining your credit capacity. 
E) rarely used by creditors in determining credit worthiness. 
A) calculated by dividing total liabilities by net worth. 
B) calculated by dividing monthly debt payments (not including house payments) by net monthly income. 
C) determined by dividing your assets into liabilities. 
D) a useless ratio for determining your credit capacity. 
E) rarely used by creditors in determining credit worthiness.

Question 20

What is not a type of consumer loan?

Accepted Answer

A) Demand loans 
B) Auto loans 
C) Installment loans 
D) Mortgages 
E) Charge cards 
A) Demand loans 
B) Auto loans 
C) Installment loans 
D) Mortgages 
E) Charge cards

If your debt-to-equity ratio is about ½, you have reached the upper limit of debt obligations.

Experts suggest that you spend no more than ____________ percent of your net income on credit purchases.

In the near future, smart cards will provide a crucial link between the World Wide Web and the physical world.

A credit file is a report which includes the individual's present employer and position, former employer(s), public records and a list of cheques returned for insufficient funds.

Your friends and neighbors can get credit information about you.

You should sign your new credit cards as soon as they arrive.

It is legal for creditors to ask or assume anything about a woman's childbearing plans.

What would your credit rating be if you are making regular payments through a special arrangement to settle your debts?

Incidental credit is a credit arrangement that has no extra costs and no specific repayment plan.

In a closed-end credit, loans are made on a continuous basis and you make at least partial payment.

If your debt-to-equity ratio is about 1, you have probably reached the upper limit of debt obligations.

Debt-to-equity ratio is

The advantages of credit include

The best way to maintain your credit standing is to:

A home equity loan is usually set up as a revolving line of credit, typically with a variable interest rate.

Most consumers have only one choice in financing current purchases.

Which of the following is considered to be a consumer loan?

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

Debt payments-to-income ratio is

What is not a type of consumer loan?

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

If your debt-to-equity ratio is about ½, you have reached the upper limit of debt obligations.

Experts suggest that you spend no more than ____________ percent of your net income on credit purchases.

In the near future, smart cards will provide a crucial link between the World Wide Web and the physical world.

A credit file is a report which includes the individual's present employer and position, former employer(s), public records and a list of cheques returned for insufficient funds.

Your friends and neighbors can get credit information about you.

You should sign your new credit cards as soon as they arrive.

It is legal for creditors to ask or assume anything about a woman's childbearing plans.

What would your credit rating be if you are making regular payments through a special arrangement to settle your debts?

Incidental credit is a credit arrangement that has no extra costs and no specific repayment plan.

In a closed-end credit, loans are made on a continuous basis and you make at least partial payment.

If your debt-to-equity ratio is about 1, you have probably reached the upper limit of debt obligations.

Debt-to-equity ratio is

The advantages of credit include

The best way to maintain your credit standing is to:

A home equity loan is usually set up as a revolving line of credit, typically with a variable interest rate.

Most consumers have only one choice in financing current purchases.

Which of the following is considered to be a consumer loan?

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

Debt payments-to-income ratio is

What is not a type of consumer loan?

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