Question 1

____________ are the credit cards issued in conjunction with a sponsoring group-most commonly some type of charitable,political,or professional organization. ​

Accepted Answer

A) Affinity cards 
B) Retail charge cards 
C) Collateralized credit cards 
D) Reward credit cards 
A) Affinity cards 
B) Retail charge cards 
C) Collateralized credit cards 
D) Reward credit cards

Question 2

Most families have only one source for consumer credit.

Accepted Answer

A) True 
 B)False

Question 3

Ann Marie accumulated a large balance on her credit card while in college.She is trying to pay it off as quickly as possible and wants to roll the balance onto a new credit card.She now uses a credit card only for emergencies.What should Ann Marie look for in a credit card given the large balance and the way she plans to use the card?

Accepted Answer

A) A low annual fee 
B) A low annual percentage rate 
C) A long grace period 
D) The average daily balance method excluding purchases 
E) The two-cycle average daily balance method 
A) A low annual fee 
B) A low annual percentage rate 
C) A long grace period 
D) The average daily balance method excluding purchases 
E) The two-cycle average daily balance method

Question 4

Paying a loan ahead of schedule is one way to build a good credit history.

Accepted Answer

A) True 
 B)False

Question 5

Russ and Lois have a home valued at $96,000 with an outstanding mortgage of $60,000.If their lender is willing to provide a home equity loan of up to 75% of the market value of the home,how much can they borrow using a home equity loan?

Accepted Answer

A) $0 
B) $12,000 
C) $27,000 
D) $28,000 
E) $36,000 
A) $0 
B) $12,000 
C) $27,000 
D) $28,000 
E) $36,000

Question 6

The most common forms of open account credit are bank credit cards and retail charge cards.

Accepted Answer

A) True 
 B)False

Question 7

Credit cards with very low minimum payment requirements are in the consumers' best interest.

Accepted Answer

A) True 
 B)False

Question 8

Credit scoring systems are often used by lenders to determine applicants' creditworthiness.

Accepted Answer

A) True 
 B)False

Question 9

William uses his bank credit card frequently; however,he always pays off the total outstanding balance on the card each month.What should William look for in a credit card given the way he uses one?

Accepted Answer

A) A low annual fee and a short grace period 
B) A low annual fee and a low interest rate 
C) No annual fee and a short grace period 
D) No annual fee and a long grace period 
E) A high annual fee and a low interest rate 
A) A low annual fee and a short grace period 
B) A low annual fee and a low interest rate 
C) No annual fee and a short grace period 
D) No annual fee and a long grace period 
E) A high annual fee and a low interest rate

Question 10

Any credit card purchase will effectively be an interest-free loan if you:

Accepted Answer

A) pay for the purchase within six months. 
B) make the minimum payment. 
C) pay off the entire balance on or before the due date. 
D) pay off the previous balance by the due date. 
E) receive a cash advance. 
A) pay for the purchase within six months. 
B) make the minimum payment. 
C) pay off the entire balance on or before the due date. 
D) pay off the previous balance by the due date. 
E) receive a cash advance.

Question 11

Which of the following would be an indication of a wise use of credit?

Accepted Answer

A) Your checks are bouncing. 
B) Collection agencies are calling you frequently. 
C) There are no pending charges on your credit cards. 
D) You have no cash reserves and must borrow for incidentals. 
E) You have missed a few loan payments. 
A) Your checks are bouncing. 
B) Collection agencies are calling you frequently. 
C) There are no pending charges on your credit cards. 
D) You have no cash reserves and must borrow for incidentals. 
E) You have missed a few loan payments.

Question 12

As a percent of take-home pay,monthly consumer credit payments should not exceed _____.

Accepted Answer

A) 25% 
B) 20% 
C) 15% 
D) 10% 
E) 5% 
A) 25% 
B) 20% 
C) 15% 
D) 10% 
E) 5%

Question 13

Saving is preferred to borrowing when providing for financial emergencies.

Accepted Answer

A) True 
 B)False

Question 14

A credit scoring system might assign points according to your age and ____________. ​

Accepted Answer

A) gender 
B) annual income 
C) religious affiliations 
D) habits 
A) gender 
B) annual income 
C) religious affiliations 
D) habits

Question 15

Which of the following will lead to a poor credit rating?

Accepted Answer

A) Opening checking and savings accounts 
B) Opening and using a charge account 
C) Applying for a long-term loan and occasionally being late with a payment 
D) Making payments ahead of schedule 
E) Discussing with the lender if you foresee difficulty in making a payment 
A) Opening checking and savings accounts 
B) Opening and using a charge account 
C) Applying for a long-term loan and occasionally being late with a payment 
D) Making payments ahead of schedule 
E) Discussing with the lender if you foresee difficulty in making a payment

Question 16

A debit card looks and works like a credit card.

Accepted Answer

A) True 
 B)False

Question 17

An individual can be overusing credit even if he or she can afford to make the minimum monthly payments on time.

Accepted Answer

A) True 
 B)False

Question 18

Interest will usually begin to accrue immediately when you use a bank credit card to:

Accepted Answer

A) make purchases. 
B) send payments. 
C) compute finance charges. 
D) get cash advances. 
E) meet a financial emergency. 
A) make purchases. 
B) send payments. 
C) compute finance charges. 
D) get cash advances. 
E) meet a financial emergency.

Question 19

The majority of persons filing for bankruptcy chooseChapter 7 of the U.S.Bankruptcy Code.

Accepted Answer

A) True 
 B)False

Question 20

A frequent flyer card can be aptly classified as a(n)____________. ​

Accepted Answer

A) reward card 
B) affinity card 
C) retail charge card 
D) collateralized card 
A) reward card 
B) affinity card 
C) retail charge card 
D) collateralized card

____________ are the credit cards issued in conjunction with a sponsoring group-most commonly some type of charitable,political,or professional organization.

Most families have only one source for consumer credit.

Paying a loan ahead of schedule is one way to build a good credit history.

Russ and Lois have a home valued at $96,000 with an outstanding mortgage of $60,000.If their lender is willing to provide a home equity loan of up to 75% of the market value of the home,how much can they borrow using a home equity loan?

The most common forms of open account credit are bank credit cards and retail charge cards.

Credit cards with very low minimum payment requirements are in the consumers' best interest.

Credit scoring systems are often used by lenders to determine applicants' creditworthiness.

William uses his bank credit card frequently; however,he always pays off the total outstanding balance on the card each month.What should William look for in a credit card given the way he uses one?

Any credit card purchase will effectively be an interest-free loan if you:

Which of the following would be an indication of a wise use of credit?

As a percent of take-home pay,monthly consumer credit payments should not exceed _____.

Saving is preferred to borrowing when providing for financial emergencies.

A credit scoring system might assign points according to your age and ____________.

Which of the following will lead to a poor credit rating?

A debit card looks and works like a credit card.

An individual can be overusing credit even if he or she can afford to make the minimum monthly payments on time.

Interest will usually begin to accrue immediately when you use a bank credit card to:

The majority of persons filing for bankruptcy chooseChapter 7 of the U.S.Bankruptcy Code.

A frequent flyer card can be aptly classified as a(n)____________.

Understanding the Financial Planning Process

Using Financial Statements and Budgets

Preparing Your Taxes

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds, ETFS and Real Estate

Planning for Retirement

Preserving Your Estate

Filters

Exam 6: Using Credit

____________ are the credit cards issued in conjunction with a sponsoring group-most commonly some type of charitable,political,or professional organization. ​

Most families have only one source for consumer credit.

Paying a loan ahead of schedule is one way to build a good credit history.

Russ and Lois have a home valued at $96,000 with an outstanding mortgage of $60,000.If their lender is willing to provide a home equity loan of up to 75% of the market value of the home,how much can they borrow using a home equity loan?

The most common forms of open account credit are bank credit cards and retail charge cards.

Credit cards with very low minimum payment requirements are in the consumers' best interest.

Credit scoring systems are often used by lenders to determine applicants' creditworthiness.

William uses his bank credit card frequently; however,he always pays off the total outstanding balance on the card each month.What should William look for in a credit card given the way he uses one?

Any credit card purchase will effectively be an interest-free loan if you:

Which of the following would be an indication of a wise use of credit?

As a percent of take-home pay,monthly consumer credit payments should not exceed _____.

Saving is preferred to borrowing when providing for financial emergencies.

A credit scoring system might assign points according to your age and ____________. ​

Which of the following will lead to a poor credit rating?

A debit card looks and works like a credit card.

An individual can be overusing credit even if he or she can afford to make the minimum monthly payments on time.

Interest will usually begin to accrue immediately when you use a bank credit card to:

The majority of persons filing for bankruptcy chooseChapter 7 of the U.S.Bankruptcy Code.

A frequent flyer card can be aptly classified as a(n)____________. ​

Understanding the Financial Planning Process

Using Financial Statements and Budgets

Preparing Your Taxes

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds, ETFS and Real Estate

Planning for Retirement

Preserving Your Estate

Filters

____________ are the credit cards issued in conjunction with a sponsoring group-most commonly some type of charitable,political,or professional organization.

A credit scoring system might assign points according to your age and ____________.

A frequent flyer card can be aptly classified as a(n)____________.