Question 1

Which federal law requires credit-reporting agencies to send the consumer's version of a disputed item to certain businesses and creditors?

Accepted Answer

A)  Truth in Lending Act 
B)  Fair Credit Reporting Act 
C)  Fair Credit Billing Act 
D)  Equal Credit Opportunity Act 
E)  Fair Debt Collection Practices Act 
A)  Truth in Lending Act 
B)  Fair Credit Reporting Act 
C)  Fair Credit Billing Act 
D)  Equal Credit Opportunity Act 
E)  Fair Debt Collection Practices Act

Question 2

Which consumer credit law prohibits abusive, deceptive, and unfair practices by debt collectors?

Accepted Answer

A)  Fair Credit Billing Act 
B)  Fair Debt Collection Practices Act 
C)  Equal Credit Opportunity Act 
D)  Fair Credit Reporting Act 
E)  Truth in Lending Act 
A)  Fair Credit Billing Act 
B)  Fair Debt Collection Practices Act 
C)  Equal Credit Opportunity Act 
D)  Fair Credit Reporting Act 
E)  Truth in Lending Act

Question 3

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.

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

Amy Farmer is getting a loan to buy a used car. The bank wants to know the trade-in value of the car she is purchasing. Which of the 5 Cs of credit is the bank examining?

Accepted Answer

A)  Character 
B)  Capacity 
C)  Capital 
D)  Collateral 
E)  Conditions 
A)  Character 
B)  Capacity 
C)  Capital 
D)  Collateral 
E)  Conditions

Question 6

If you think that your bill is wrong, you should first:

Accepted Answer

A)  contact the local credit bureau and inform it of the billing error. 
B)  complain to the Better Business Bureau. 
C)  contact your state consumer protection agency. 
D)  notify the creditor in writing within 60 days after the bill was mailed. 
E)  contact your attorney to settle the matter. 
A)  contact the local credit bureau and inform it of the billing error. 
B)  complain to the Better Business Bureau. 
C)  contact your state consumer protection agency. 
D)  notify the creditor in writing within 60 days after the bill was mailed. 
E)  contact your attorney to settle the matter.

Question 7

When you cosign a loan, you are being asked to guarantee this debt.

Accepted Answer

A) True 
 B)False

Question 8

A loan officer is examining your income and the amount of your existing debt payments in deciding whether to make a loan to you today. Which aspect of the 5 Cs of lending is the loan officer most likely looking at?

Accepted Answer

A)  Character 
B)  Capacity 
C)  Capital 
D)  Collateral 
E)  Conditions 
A)  Character 
B)  Capacity 
C)  Capital 
D)  Collateral 
E)  Conditions

Question 9

Which federal credit law protects you against an unauthorized use of your credit card?

Accepted Answer

A)  Fair Credit Reporting Act 
B)  Fair Credit Billing Act 
C)  Equal Credit Opportunity Act 
D)  Fair Debt Collection Practices Act 
E)  Truth in Lending Act 
A)  Fair Credit Reporting Act 
B)  Fair Credit Billing Act 
C)  Equal Credit Opportunity Act 
D)  Fair Debt Collection Practices Act 
E)  Truth in Lending Act

Question 10

Credit bureaus obtain their data from banks, finance companies, merchants, credit card companies, other creditors, and court records.

Accepted Answer

A) True 
 B)False

Question 11

Which federal law regulates the use of credit reports, requires the deletion of obsolete information, and gives you access to your file?

Accepted Answer

A)  Truth in Lending Act of 1969 
B)  Fair Credit Billing Act of 1975 
C)  Equal Credit Opportunity Act of 1975 
D)  Fair Credit Reporting Act of 1971 
E)  Fair Debit Collection Practices Act of 1978 
A)  Truth in Lending Act of 1969 
B)  Fair Credit Billing Act of 1975 
C)  Equal Credit Opportunity Act of 1975 
D)  Fair Credit Reporting Act of 1971 
E)  Fair Debit Collection Practices Act of 1978

Question 12

Describe the federal law that protects you from billing mistakes.

Accepted Answer

The answer of Describe the federal law that protects you...

Question 13

Jennifer Rogers needs a loan to purchase a new car. She knows the creditor must:

Accepted Answer

A)  ask about how many children she plans on having. 
B)  consider whether she has a telephone in her own name. 
C)  evaluate her on the same basis as applicants who are male. 
D)  require her husband to cosign the loan. 
E)  ask about her birth control methods. 
A)  ask about how many children she plans on having. 
B)  consider whether she has a telephone in her own name. 
C)  evaluate her on the same basis as applicants who are male. 
D)  require her husband to cosign the loan. 
E)  ask about her birth control methods.

Question 14

The baby boom generation currently represents about 30 percent of the population but holds nearly ____________ percent of the debt outstanding.

Accepted Answer

A)  80 
B)  70 
C)  60 
D)  50 
E)  40 
A)  80 
B)  70 
C)  60 
D)  50 
E)  40

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

What can be included in your credit report?

Accepted Answer

A)  Race 
B)  Nationality 
C)  Sex 
D)  Marital status 
E)  Religion 
A)  Race 
B)  Nationality 
C)  Sex 
D)  Marital status 
E)  Religion

Question 17

If you have a complaint about consumer credit, you should first:

Accepted Answer

A)  try to solve your problem directly with the creditor. 
B)  contact your attorney. 
C)  file a complaint with the Better Business Bureau. 
D)  report it to the state consumer protection agency. 
E)  complain to the Federal Reserve Bank in your district. 
A)  try to solve your problem directly with the creditor. 
B)  contact your attorney. 
C)  file a complaint with the Better Business Bureau. 
D)  report it to the state consumer protection agency. 
E)  complain to the Federal Reserve Bank in your district.

Question 18

How do creditors determine your credit-worthiness?

Accepted Answer

Creditors determine your credit-worthine

Question 19

If your debit card is lost or stolen, you must work directly with the issuer.

Accepted Answer

A) True 
 B)False

Question 20

Single lump-sum credit is a loan that must be repaid in total on a specified day, usually within 30 to 90 days.

Accepted Answer

A) True 
 B)False

Which federal law requires credit-reporting agencies to send the consumer's version of a disputed item to certain businesses and creditors?

Which consumer credit law prohibits abusive, deceptive, and unfair practices by debt collectors?

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

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

Amy Farmer is getting a loan to buy a used car. The bank wants to know the trade-in value of the car she is purchasing. Which of the 5 Cs of credit is the bank examining?

If you think that your bill is wrong, you should first:

When you cosign a loan, you are being asked to guarantee this debt.

A loan officer is examining your income and the amount of your existing debt payments in deciding whether to make a loan to you today. Which aspect of the 5 Cs of lending is the loan officer most likely looking at?

Which federal credit law protects you against an unauthorized use of your credit card?

Credit bureaus obtain their data from banks, finance companies, merchants, credit card companies, other creditors, and court records.

Which federal law regulates the use of credit reports, requires the deletion of obsolete information, and gives you access to your file?

Describe the federal law that protects you from billing mistakes.

Jennifer Rogers needs a loan to purchase a new car. She knows the creditor must:

The baby boom generation currently represents about 30 percent of the population but holds nearly ____________ percent of the debt outstanding.

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

What can be included in your credit report?

If you have a complaint about consumer credit, you should first:

How do creditors determine your credit-worthiness?

If your debit card is lost or stolen, you must work directly with the issuer.

Single lump-sum credit is a loan that must be repaid in total on a specified day, usually within 30 to 90 days.

Personal Finance Basics and the Time Value of Money

Financial Aspects of Career Planning

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

Financial Services: Savings Plans and Payment Accounts

Choosing a Source of Credit: The Costs of Credit Alternatives

Consumer Purchasing Strategies and Legal Protection

The Housing Decision: Factors and Finances

Property and Motor Vehicle Insurance

Health, Disability, and Long-Term Care Insurance

Life Insurance

Investing Fundamentals

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Investing in Real Estate and Other Investment Alternatives

Starting Early: Retirement Planning

Estate Planning

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Exam 6: Introduction to Consumer Credit

Which federal law requires credit-reporting agencies to send the consumer's version of a disputed item to certain businesses and creditors?

Which consumer credit law prohibits abusive, deceptive, and unfair practices by debt collectors?

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

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

Amy Farmer is getting a loan to buy a used car. The bank wants to know the trade-in value of the car she is purchasing. Which of the 5 Cs of credit is the bank examining?

If you think that your bill is wrong, you should first:

When you cosign a loan, you are being asked to guarantee this debt.

A loan officer is examining your income and the amount of your existing debt payments in deciding whether to make a loan to you today. Which aspect of the 5 Cs of lending is the loan officer most likely looking at?

Which federal credit law protects you against an unauthorized use of your credit card?

Credit bureaus obtain their data from banks, finance companies, merchants, credit card companies, other creditors, and court records.

Which federal law regulates the use of credit reports, requires the deletion of obsolete information, and gives you access to your file?

Describe the federal law that protects you from billing mistakes.

Jennifer Rogers needs a loan to purchase a new car. She knows the creditor must:

The baby boom generation currently represents about 30 percent of the population but holds nearly ____________ percent of the debt outstanding.

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

What can be included in your credit report?

If you have a complaint about consumer credit, you should first:

How do creditors determine your credit-worthiness?

If your debit card is lost or stolen, you must work directly with the issuer.

Single lump-sum credit is a loan that must be repaid in total on a specified day, usually within 30 to 90 days.

Personal Finance Basics and the Time Value of Money

Financial Aspects of Career Planning

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

Financial Services: Savings Plans and Payment Accounts

Choosing a Source of Credit: The Costs of Credit Alternatives

Consumer Purchasing Strategies and Legal Protection

The Housing Decision: Factors and Finances

Property and Motor Vehicle Insurance

Health, Disability, and Long-Term Care Insurance

Life Insurance

Investing Fundamentals

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Investing in Real Estate and Other Investment Alternatives

Starting Early: Retirement Planning

Estate Planning

Filters