Question 1

Many banks extend a bank line of credit,which is also called:

Accepted Answer

A) revolving check credit. 
B) a box of credit. 
C) convenience credit. 
D) installment credit. 
E) single lump-sum credit. 
A) revolving check credit. 
B) a box of credit. 
C) convenience credit. 
D) installment credit. 
E) single lump-sum credit.

Question 2

If you have a problem with your credit account,the best solution is to:

Accepted Answer

A) file a lawsuit against the creditor. 
B) solve your problem directly with the creditor. 
C) complain to the Federal Reserve System. 
D) complain to the Board of Governors. 
E) wait for creditor action. 
A) file a lawsuit against the creditor. 
B) solve your problem directly with the creditor. 
C) complain to the Federal Reserve System. 
D) complain to the Board of Governors. 
E) wait for creditor action.

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

Experts suggest that you spend no more than ____________ percent of your net income (after-tax)on consumer credit payments.

Accepted Answer

A) 10 
B) 20 
C) 30 
D) 40 
E) 50 
A) 10 
B) 20 
C) 30 
D) 40 
E) 50

Question 5

A term that refers to the borrower's assets or net worth 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 6

According to the Credit CARD Act,your credit card company must send you a notice ___days before they can increase your interest rate.

Accepted Answer

A) 30 
B) 45 
C) 50 
D) 60 
E) 90 
A) 30 
B) 45 
C) 50 
D) 60 
E) 90

Question 7

What can you do if your identity is stolen?

Accepted Answer

If your identity is stolen,take three ac

Question 8

Installment sales credit 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 large appliances 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 large appliances or furniture. 
D) direct loan for vacation purposes. 
E) synonym for a single lump-sum credit.

Question 9

Which one of the following agencies maintains data about the amount and terms of your credit and your paying habits?

Accepted Answer

A) Federal Reserve Bank in your district 
B) Consumer sentinel network 
C) Federal Trade Commission 
D) Public assistance office 
E) Credit bureau 
A) Federal Reserve Bank in your district 
B) Consumer sentinel network 
C) Federal Trade Commission 
D) Public assistance office 
E) Credit bureau

Question 10

Which one of the following is an advantage of using credit?

Accepted Answer

A) Potential bankruptcy 
B) Spending beyond your budget 
C) Funding an emergency expense 
D) Committing future income to pay for current purchases 
E) Incurring interest charges 
A) Potential bankruptcy 
B) Spending beyond your budget 
C) Funding an emergency expense 
D) Committing future income to pay for current purchases 
E) Incurring interest charges

Question 11

Debit cards are often called bank cards,ATM cards,cash cards,and check cards.

Accepted Answer

A) True 
 B)False

Question 12

The Equal Credit Opportunity Act is very specific about how a person's age may be used in credit decisions.

Accepted Answer

A) True 
 B)False

Question 13

What are the three most common types of closed-end credit?

Accepted Answer

The three most common types of

Question 14

Mike Cook has been receiving calls at work every two hours from a collection company that is trying to collect a past due loan from him.He believes this is harassment and that the collections company is not allowed to do this.Which consumer protection law provides protection from this type of harassment?

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 15

A valuable asset pledged to obtain a loan and subject to seizure upon default to satisfy the debt 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 16

Perhaps the greatest disadvantage of using credit is the temptation to overspend.

Accepted Answer

A) True 
 B)False

Question 17

In determining your credit capacity,you first provide for basic necessities within your budget,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 18

Which federal consumer credit law regulates the advertising of credit terms?

Accepted Answer

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

Question 19

Gordon Carey uses his Visa card to purchase a new digital camera and lens.What type of credit did Gordon use?

Accepted Answer

A) Installment sales credit 
B) Installment cash credit 
C) Single lump-sum credit 
D) Open-end credit 
E) Incidental credit 
A) Installment sales credit 
B) Installment cash credit 
C) Single lump-sum credit 
D) Open-end credit 
E) Incidental credit

Question 20

Using a credit card,such as Visa or MasterCard,is an example of closed-end credit.

Accepted Answer

A) True 
 B)False

Many banks extend a bank line of credit,which is also called:

If you have a problem with your credit account,the best solution is to:

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?

Experts suggest that you spend no more than ____________ percent of your net income (after-tax)on consumer credit payments.

A term that refers to the borrower's assets or net worth is called:

According to the Credit CARD Act,your credit card company must send you a notice ___days before they can increase your interest rate.

What can you do if your identity is stolen?

Installment sales credit is a:

Which one of the following agencies maintains data about the amount and terms of your credit and your paying habits?

Which one of the following is an advantage of using credit?

Debit cards are often called bank cards,ATM cards,cash cards,and check cards.

The Equal Credit Opportunity Act is very specific about how a person's age may be used in credit decisions.

What are the three most common types of closed-end credit?

A valuable asset pledged to obtain a loan and subject to seizure upon default to satisfy the debt is called:

Perhaps the greatest disadvantage of using credit is the temptation to overspend.

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

Which federal consumer credit law regulates the advertising of credit terms?

Gordon Carey uses his Visa card to purchase a new digital camera and lens.What type of credit did Gordon use?

Using a credit card,such as Visa or MasterCard,is an example of closed-end credit.

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

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Exam 6: Introduction to Consumer Credit

Many banks extend a bank line of credit,which is also called:

If you have a problem with your credit account,the best solution is to:

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?

Experts suggest that you spend no more than ____________ percent of your net income (after-tax)on consumer credit payments.

A term that refers to the borrower's assets or net worth is called:

According to the Credit CARD Act,your credit card company must send you a notice ___days before they can increase your interest rate.

What can you do if your identity is stolen?

Installment sales credit is a:

Which one of the following agencies maintains data about the amount and terms of your credit and your paying habits?

Which one of the following is an advantage of using credit?

Debit cards are often called bank cards,ATM cards,cash cards,and check cards.

The Equal Credit Opportunity Act is very specific about how a person's age may be used in credit decisions.

What are the three most common types of closed-end credit?

A valuable asset pledged to obtain a loan and subject to seizure upon default to satisfy the debt is called:

Perhaps the greatest disadvantage of using credit is the temptation to overspend.

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

Which federal consumer credit law regulates the advertising of credit terms?

Gordon Carey uses his Visa card to purchase a new digital camera and lens.What type of credit did Gordon use?

Using a credit card,such as Visa or MasterCard,is an example of closed-end credit.

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