Question 1

Which of the following is a prearranged loan for a specified amount that you can use by writing a special check?

Accepted Answer

A) incidental credit. 
B) closed-end credit. 
C) a bank line of credit. 
D) installment sales credit. 
E) overdraft protection. 
A) incidental credit. 
B) closed-end credit. 
C) a bank line of credit. 
D) installment sales credit. 
E) overdraft protection. C

Question 2

A debit card:

Accepted Answer

A) immediately deducts the cost of your purchase from your bank account. 
B) credits your account at the moment you buy goods or services. 
C) is a new type of a credit card issued by VISA International. 
D) is another name for a travel and entertainment card. 
E) typically has a credit limit of $1,000. 
A) immediately deducts the cost of your purchase from your bank account. 
B) credits your account at the moment you buy goods or services. 
C) is a new type of a credit card issued by VISA International. 
D) is another name for a travel and entertainment card. 
E) typically has a credit limit of $1,000. A

Question 3

An example of open-end credit is:

Accepted Answer

A) the use of a bank credit card to make a purchase. 
B) a mortgage loan from a savings and loan institution. 
C) an automobile loan from a credit union. 
D) an installment loan from a furniture store. 
E) an installment loan for purchasing a major appliance. 
A) the use of a bank credit card to make a purchase. 
B) a mortgage loan from a savings and loan institution. 
C) an automobile loan from a credit union. 
D) an installment loan from a furniture store. 
E) an installment loan for purchasing a major appliance. A

Question 4

Which of the following is true of the baby boom generation?

Accepted Answer

A) represents about 30% of the population 
B) holds nearly 60% of the outstanding debt 
C) extensively uses debt 
D) born between 1946 and 1964 
E) all of these 
A) represents about 30% of the population 
B) holds nearly 60% of the outstanding debt 
C) extensively uses debt 
D) born between 1946 and 1964 
E) all of these

Question 5

Which federal consumer credit law starts all credit applicants off on the same footing with factors that may not be used to discriminate against you?

Accepted Answer

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

Question 6

Which one of the following is not included in the 5 C's of credit?

Accepted Answer

A) Conditions 
B) Cash flow 
C) Collateral 
D) Capacity 
E) Character 
A) Conditions 
B) Cash flow 
C) Collateral 
D) Capacity 
E) Character

Question 7

Today,Michael purchased a laptop computer from a retail outlet.He has agreed to pay for this purchase in full 30 days from today.This is an example of:

Accepted Answer

A) open-end credit. 
B) a line of credit. 
C) single lump-sum credit. 
D) installment cash credit. 
E) incidental credit. 
A) open-end credit. 
B) a line of credit. 
C) single lump-sum credit. 
D) installment cash credit. 
E) incidental credit.

Question 8

Credit is an arrangement to receive cash,goods,or services now and pay for them in the future.

Accepted Answer

A) True 
 B)False

Question 9

The credit cardholders who pay off their balances in full each month are known as convenience users.

Accepted Answer

A) True 
 B)False

Question 10

What are the two general rules of measuring credit capacity?

Accepted Answer

The two general rules of measuring credi

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

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 13

A credit arrangement that has no extra costs and no specific repayment plan is called:

Accepted Answer

A) installment sales credit. 
B) single lump-sum credit. 
C) line of credit. 
D) incidental credit. 
E) revolving check credit. 
A) installment sales credit. 
B) single lump-sum credit. 
C) line of credit. 
D) incidental credit. 
E) revolving check credit.

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

In the 5 Cs of credit,capacity refers to the borrower's attitude toward his or her credit obligations.

Accepted Answer

A) True 
 B)False

Question 16

The accuracy of credit reports has worsened recently.

Accepted Answer

A) True 
 B)False

Question 17

Which federal consumer credit law requires credit-reporting agencies to send the consumer's version of a disputed item to certain businesses or 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 18

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 19

Your friends and neighbors can get credit information about you.

Accepted Answer

A) True 
 B)False

Question 20

Which federal consumer credit law requires "credit repair" companies to give consumers a written contract that can be canceled within three business days?

Accepted Answer

A) Fair and Accurate Credit Transactions Act 
B) Fair Debt Collection Practices Act 
C) Fair Credit Billing Act 
D) Truth in Lending Act 
E) Consumer Credit Reporting Reform Act 
A) Fair and Accurate Credit Transactions Act 
B) Fair Debt Collection Practices Act 
C) Fair Credit Billing Act 
D) Truth in Lending Act 
E) Consumer Credit Reporting Reform Act

Which of the following is a prearranged loan for a specified amount that you can use by writing a special check?

A debit card:

An example of open-end credit is:

Which of the following is true of the baby boom generation?

Which federal consumer credit law starts all credit applicants off on the same footing with factors that may not be used to discriminate against you?

Which one of the following is not included in the 5 C's of credit?

Today,Michael purchased a laptop computer from a retail outlet.He has agreed to pay for this purchase in full 30 days from today.This is an example of:

Credit is an arrangement to receive cash,goods,or services now and pay for them in the future.

The credit cardholders who pay off their balances in full each month are known as convenience users.

What are the two general rules of measuring credit capacity?

The best way to maintain your credit rating is to:

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?

A credit arrangement that has no extra costs and no specific repayment plan is called:

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

In the 5 Cs of credit,capacity refers to the borrower's attitude toward his or her credit obligations.

The accuracy of credit reports has worsened recently.

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

Which of the following is a credit bureau?

Your friends and neighbors can get credit information about you.

Which federal consumer credit law requires "credit repair" companies to give consumers a written contract that can be canceled within three business 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 Stock

Investing in Bonds

Investing in Mutual Funds

Investing in Real Estate and Other Investment Alternatives

Starting Early: Retirement Planning

Estate Planning

Filters

Exam 6: Introduction to Consumer Credit

Which of the following is a prearranged loan for a specified amount that you can use by writing a special check?

A debit card:

An example of open-end credit is:

Which of the following is true of the baby boom generation?

Which federal consumer credit law starts all credit applicants off on the same footing with factors that may not be used to discriminate against you?

Which one of the following is not included in the 5 C's of credit?

Today,Michael purchased a laptop computer from a retail outlet.He has agreed to pay for this purchase in full 30 days from today.This is an example of:

Credit is an arrangement to receive cash,goods,or services now and pay for them in the future.

The credit cardholders who pay off their balances in full each month are known as convenience users.

What are the two general rules of measuring credit capacity?

The best way to maintain your credit rating is to:

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?

A credit arrangement that has no extra costs and no specific repayment plan is called:

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

In the 5 Cs of credit,capacity refers to the borrower's attitude toward his or her credit obligations.

The accuracy of credit reports has worsened recently.

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

Which of the following is a credit bureau?

Your friends and neighbors can get credit information about you.

Which federal consumer credit law requires "credit repair" companies to give consumers a written contract that can be canceled within three business 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 Stock

Investing in Bonds

Investing in Mutual Funds

Investing in Real Estate and Other Investment Alternatives

Starting Early: Retirement Planning

Estate Planning

Filters