Question 1

The Federal Trade Commission receives an average of how many complaints about the credit bureaus every year?

Accepted Answer

A)  5,000 
B)  8,000 
C)  12,000 
D)  18,000 
E)  22,000 
A)  5,000 
B)  8,000 
C)  12,000 
D)  18,000 
E)  22,000

Question 2

Which of the following is a credit bureau?

Accepted Answer

A)  Federal Reserve 
B)  Federal Trade Commission 
C)  Better Business Bureau 
D)  Experian 
E)  FICO 
A)  Federal Reserve 
B)  Federal Trade Commission 
C)  Better Business Bureau 
D)  Experian 
E)  FICO

Question 3

Larry Arnold gets a direct loan of money to go on vacation with his family. He will repay the loan over the next twelve months. What type of credit did Larry use?

Accepted Answer

A)  Installment sales credit 
B)  Installment cash credit 
C)  Single lump sum credit 
D)  Revolving credit 
E)  Incidental credit 
A)  Installment sales credit 
B)  Installment cash credit 
C)  Single lump sum credit 
D)  Revolving credit 
E)  Incidental credit

Question 4

Jake Skinner purchases a big screen TV on credit and will repay the loan with one payment at the end of 90 days. What type of credit did Jake use?

Accepted Answer

A)  Installment sales credit 
B)  Installment cash credit 
C)  Single lump sum credit 
D)  Revolving credit 
E)  Incidental credit 
A)  Installment sales credit 
B)  Installment cash credit 
C)  Single lump sum credit 
D)  Revolving credit 
E)  Incidental credit

Question 5

If you are a woman, a creditor must:

Accepted Answer

A)  require a spouse to cosign a loan. 
B)  ask about your birth control practices or family plans. 
C)  consider whether you have a telephone listing in your own home. 
D)  refuse individual credit in your own name. 
E)  consider income from your employment. 
A)  require a spouse to cosign a loan. 
B)  ask about your birth control practices or family plans. 
C)  consider whether you have a telephone listing in your own home. 
D)  refuse individual credit in your own name. 
E)  consider income from your employment.

Question 6

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 7

If you think you have been discriminated against by consumer reporting agencies or creditors, you should file a complaint with which government agency?

Accepted Answer

A)  Federal Reserve Board 
B)  Federal Deposit Insurance Corporation 
C)  Federal Trade Commission 
D)  Office of the Comptroller of the Currency 
E)  National Credit Union Administration 
A)  Federal Reserve Board 
B)  Federal Deposit Insurance Corporation 
C)  Federal Trade Commission 
D)  Office of the Comptroller of the Currency 
E)  National Credit Union Administration

Question 8

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.

Question 9

Debit cards are also often called:

Accepted Answer

A)  bank cards. 
B)  ATM cards. 
C)  cash cards. 
D)  check cards. 
E)  All of these 
A)  bank cards. 
B)  ATM cards. 
C)  cash cards. 
D)  check cards. 
E)  All of these

Question 10

Mohammad Ishaque has checked his credit report and believes there is an error in it. Which consumer protection law specifies that he has the right to have errors in his credit report investigated?

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 11

The best way to maintain your credit rating is to:

Accepted Answer

A)  use credit sparingly. 
B)  pay cash for your purchases. 
C)  repay your debts on time. 
D)  declare a Chapter 7 bankruptcy. 
E)  use as many credit cards as you can. 
A)  use credit sparingly. 
B)  pay cash for your purchases. 
C)  repay your debts on time. 
D)  declare a Chapter 7 bankruptcy. 
E)  use as many credit cards as you can.

Question 12

The smaller the debt-to-equity ratio, the riskier the situation is for lenders and borrowers.

Accepted Answer

A) True 
 B)False

Question 13

The credit bureau cannot charge you a disclosure fee if you ask to see your file within ______ days of being notified of a denial based on a credit report.

Accepted Answer

A)  10 
B)  20 
C)  30 
D)  40 
E)  60 
A)  10 
B)  20 
C)  30 
D)  40 
E)  60

Question 14

What are a few things to consider before you cosign a loan?

Accepted Answer

The answer of What are a few things to consider...

Question 15

What are the two general rules of measuring credit capacity?

Accepted Answer

The answer of What are the two general rules of...

Question 16

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 17

Credit when effectively used, can help you have more and enjoy more.

Accepted Answer

A) True 
 B)False

Question 18

Many retailers use open-end credit.

Accepted Answer

A) True 
 B)False

Question 19

Most economists do not recognize consumer credit as a major force in the American economy.

Accepted Answer

A) True 
 B)False

Question 20

A good example of closed-end credit is:

Accepted Answer

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

The Federal Trade Commission receives an average of how many complaints about the credit bureaus every year?

Which of the following is a credit bureau?

Larry Arnold gets a direct loan of money to go on vacation with his family. He will repay the loan over the next twelve months. What type of credit did Larry use?

Jake Skinner purchases a big screen TV on credit and will repay the loan with one payment at the end of 90 days. What type of credit did Jake use?

If you are a woman, a creditor must:

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

If you think you have been discriminated against by consumer reporting agencies or creditors, you should file a complaint with which government agency?

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

Debit cards are also often called:

Mohammad Ishaque has checked his credit report and believes there is an error in it. Which consumer protection law specifies that he has the right to have errors in his credit report investigated?

The best way to maintain your credit rating is to:

The smaller the debt-to-equity ratio, the riskier the situation is for lenders and borrowers.

The credit bureau cannot charge you a disclosure fee if you ask to see your file within ______ days of being notified of a denial based on a credit report.

What are a few things to consider before you cosign a loan?

What are the two general rules of measuring credit capacity?

In evaluating your credit application, a lender may:

Credit when effectively used, can help you have more and enjoy more.

Many retailers use open-end credit.

Most economists do not recognize consumer credit as a major force in the American economy.

A good example of closed-end credit is:

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

The Federal Trade Commission receives an average of how many complaints about the credit bureaus every year?

Which of the following is a credit bureau?

Larry Arnold gets a direct loan of money to go on vacation with his family. He will repay the loan over the next twelve months. What type of credit did Larry use?

Jake Skinner purchases a big screen TV on credit and will repay the loan with one payment at the end of 90 days. What type of credit did Jake use?

If you are a woman, a creditor must:

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

If you think you have been discriminated against by consumer reporting agencies or creditors, you should file a complaint with which government agency?

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

Debit cards are also often called:

Mohammad Ishaque has checked his credit report and believes there is an error in it. Which consumer protection law specifies that he has the right to have errors in his credit report investigated?

The best way to maintain your credit rating is to:

The smaller the debt-to-equity ratio, the riskier the situation is for lenders and borrowers.

The credit bureau cannot charge you a disclosure fee if you ask to see your file within ______ days of being notified of a denial based on a credit report.

What are a few things to consider before you cosign a loan?

What are the two general rules of measuring credit capacity?

In evaluating your credit application, a lender may:

Credit when effectively used, can help you have more and enjoy more.

Many retailers use open-end credit.

Most economists do not recognize consumer credit as a major force in the American economy.

A good example of closed-end credit is:

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