Question 1

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

Accepted Answer

A) 7 
B) 9 
C) 11 
D) 13 
E) 15 
A) 7 
B) 9 
C) 11 
D) 13 
E) 15

Question 2

A line of credit is the maximum dollar amount of credit the lender has made available to you.

Accepted Answer

A) True 
 B)False

Question 3

If you cosign a loan, all of the following are true except,

Accepted Answer

A) you are being asked to guarantee the debt. 
B) it is your legal responsibility to pay the debt. 
C) you'll have to pay only a portion of the debt if the borrower does not pay. 
D) the creditor must first try to collect from the borrower. 
E) the creditor can garnish your wages. 
A) you are being asked to guarantee the debt. 
B) it is your legal responsibility to pay the debt. 
C) you'll have to pay only a portion of the debt if the borrower does not pay. 
D) the creditor must first try to collect from the borrower. 
E) the creditor can garnish your wages.

Question 4

A credit card cash withdrawal always incurs interest from the moment of withdrawal.

Accepted Answer

A) True 
 B)False

Question 5

A lender requires a cosigner even when a borrower meets the lender's criteria for making a loan.

Accepted Answer

A) True 
 B)False

Question 6

Some studies show that as many as three out of four cosigners are asked to repay the loan.

Accepted Answer

A) True 
 B)False

Question 7

The maximum amount of credit you are allowed by a creditor is called a(n)

Accepted Answer

A) revolving credit. 
B) installment cash credit. 
C) convenience credit. 
D) line of credit. 
E) single lump-sum credit. 
A) revolving credit. 
B) installment cash credit. 
C) convenience credit. 
D) line of credit. 
E) single lump-sum credit.

Question 8

An installment loan is a

Accepted Answer

A) direct loan of money for personal purposes. 
B) direct loan of money for home improvement. 
C) loan that allows you to receive merchandise such as a refrigerator or furniture. 
D) direct loan for vacation purposes. 
E) synonym for a single lump-sum credit. 
A) direct loan of money for personal purposes. 
B) direct loan of money for home improvement. 
C) loan that allows you to receive merchandise such as a refrigerator or furniture. 
D) direct loan for vacation purposes. 
E) synonym for a single lump-sum credit.

Question 9

When did installment credit explode on the North American scene?

Accepted Answer

A) Just after World War II 
B) with the advent of television in the late 1940s 
C) with the advent of the automobile in the early 1900s 
D) during the recession of the 1950s 
E) during the inflation of the 1970s 
A) Just after World War II 
B) with the advent of television in the late 1940s 
C) with the advent of the automobile in the early 1900s 
D) during the recession of the 1950s 
E) during the inflation of the 1970s

Question 10

What percentage of your VantageScore is based on available credit?

Accepted Answer

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

Question 11

What percentage of consumers are rated prime plus based on the VantageScore?

Accepted Answer

A) 16% 
B) 20% 
C) 25% 
D) 9% 
E) 19% 
A) 16% 
B) 20% 
C) 25% 
D) 9% 
E) 19%

Question 12

Valid reasons for using credit include all of the following except

Accepted Answer

A) medical emergency 
B) acquiring a car to return to the workforce 
C) borrowing for a higher education 
D) borrow for everyday living expenses 
E) buying an item now will cost less than in the future 
A) medical emergency 
B) acquiring a car to return to the workforce 
C) borrowing for a higher education 
D) borrow for everyday living expenses 
E) buying an item now will cost less than in the future

Question 13

The borrower's attitude toward his or her credit obligations is called

Accepted Answer

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

Question 14

Which of the following is the best rating to have on your credit report?

Accepted Answer

A) L0 
B) L10 
C) R0 
D) R1 
E) R9 
A) L0 
B) L10 
C) R0 
D) R1 
E) R9

Question 15

It is safer to use credit, since charge accounts and credit cards let you shop and travel without carrying large amounts of cash.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is the worst possible rating to have on your credit report?

Accepted Answer

A) L0 
B) L10 
C) R0 
D) R1 
E) R9 
A) L0 
B) L10 
C) R0 
D) R1 
E) R9

Question 17

Credit should not be considered a substitute for cash.

Accepted Answer

A) True 
 B)False

Question 18

Which of these is 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) All are characteristics of Paypal 
A) Facilitates online auction payments. 
B) Offers password protected accounts. 
C) Allows use of credit cards. 
D) Transfers funds in U.S.dollars. 
E) All are characteristics of Paypal

Question 19

What percentage of your VantageScore is based on credit balances?

Accepted Answer

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

Question 20

The borrower's financial ability to meet credit obligations is called

Accepted Answer

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

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

A line of credit is the maximum dollar amount of credit the lender has made available to you.

If you cosign a loan, all of the following are true except,

A credit card cash withdrawal always incurs interest from the moment of withdrawal.

A lender requires a cosigner even when a borrower meets the lender's criteria for making a loan.

Some studies show that as many as three out of four cosigners are asked to repay the loan.

The maximum amount of credit you are allowed by a creditor is called a(n)

An installment loan is a

When did installment credit explode on the North American scene?

What percentage of your VantageScore is based on available credit?

What percentage of consumers are rated prime plus based on the VantageScore?

Valid reasons for using credit include all of the following except

The borrower's attitude toward his or her credit obligations is called

Which of the following is the best rating to have on your credit report?

It is safer to use credit, since charge accounts and credit cards let you shop and travel without carrying large amounts of cash.

Which of the following is the worst possible rating to have on your credit report?

Credit should not be considered a substitute for cash.

Which of these is a characteristic of Paypal?

What percentage of your VantageScore is based on credit balances?

The borrower's financial ability to meet credit obligations is called

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

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

A line of credit is the maximum dollar amount of credit the lender has made available to you.

If you cosign a loan, all of the following are true except,

A credit card cash withdrawal always incurs interest from the moment of withdrawal.

A lender requires a cosigner even when a borrower meets the lender's criteria for making a loan.

Some studies show that as many as three out of four cosigners are asked to repay the loan.

The maximum amount of credit you are allowed by a creditor is called a(n)

An installment loan is a

When did installment credit explode on the North American scene?

What percentage of your VantageScore is based on available credit?

What percentage of consumers are rated prime plus based on the VantageScore?

Valid reasons for using credit include all of the following except

The borrower's attitude toward his or her credit obligations is called

Which of the following is the best rating to have on your credit report?

It is safer to use credit, since charge accounts and credit cards let you shop and travel without carrying large amounts of cash.

Which of the following is the worst possible rating to have on your credit report?

Credit should not be considered a substitute for cash.

Which of these is a characteristic of Paypal?

What percentage of your VantageScore is based on credit balances?

The borrower's financial ability to meet credit obligations is called

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