Question 1

Which federal consumer credit law allows consumers to withhold payment for faulty or defective goods or services when purchased with a credit card?

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 federal consumer credit law requires issuers to display on monthly statements how long it would take to pay off the existing balance and the total interest cost if the consumer paid only the minimum due?

Accepted Answer

A) Fair Credit Reporting Act 
B) Equal Credit Opportunity Act 
C) Truth in Lending Act 
D) Credit Card Accountability, Responsibility, and Disclosure Act 
E) Fair Credit Billing Act 
A) Fair Credit Reporting Act 
B) Equal Credit Opportunity Act 
C) Truth in Lending Act 
D) Credit Card Accountability, Responsibility, and Disclosure Act 
E) Fair Credit Billing Act

Question 3

Most of the information in your credit file may be reported for only ______ years.

Accepted Answer

A) 7 
B) 9 
C) 11 
D) 13 
E) 15 
A) 7 
B) 9 
C) 11 
D) 13 
E) 15

Question 4

Department stores and gasoline companies are good places to obtain your first credit card.

Accepted Answer

A) True 
 B)False

Question 5

If you have declared personal bankruptcy,then this fact may be reported by credit bureaus for ____________ years.

Accepted Answer

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

Question 6

College students are not a prime target for credit card issuers.

Accepted Answer

A) True 
 B)False

Question 7

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 8

Which federal 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 9

When resolving a billing dispute,a creditor must either tell you why the bill is correct or:

Accepted Answer

A) correct your account within two billing periods. 
B) send this information to a credit bureau. 
C) require you to pay the bill in full and then credit your account if the error is found. 
D) start the collection process. 
E) demand that you surrender your credit card. 
A) correct your account within two billing periods. 
B) send this information to a credit bureau. 
C) require you to pay the bill in full and then credit your account if the error is found. 
D) start the collection process. 
E) demand that you surrender your credit card.

Question 10

If someone has stolen your identity,the Federal Trade Commission recommends that you contact the fraud departments of each of the three major credit bureaus.

Accepted Answer

A) True 
 B)False

Question 11

Co-branded credit cards:

Accepted Answer

A) are often linked with a certain business trade name offering "points." 
B) help build customer loyalty. 
C) allow the cardholder to earn rebates on products and services. 
D) have increased in popularity since 1992. 
E) All of these are correct. 
A) are often linked with a certain business trade name offering "points." 
B) help build customer loyalty. 
C) allow the cardholder to earn rebates on products and services. 
D) have increased in popularity since 1992. 
E) All of these are correct.

Question 12

If your monthly net income is $1,500,what should be your maximum amount spent on credit payments?

Accepted Answer

A) $200 
B) $300 
C) $400 
D) $500 
E) $600 
A) $200 
B) $300 
C) $400 
D) $500 
E) $600

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

The borrower's attitude toward his or her credit obligations is called:

Accepted Answer

A) capacity. 
B) capital. 
C) character. 
D) collateral. 
E) conditions. 
A) capacity. 
B) capital. 
C) character. 
D) collateral. 
E) conditions.

Question 15

Which one of the following is not a source that provides data to credit bureaus?

Accepted Answer

A) Banks 
B) Finance companies 
C) Merchants 
D) Court records 
E) Internal Revenue Service 
A) Banks 
B) Finance companies 
C) Merchants 
D) Court records 
E) Internal Revenue Service

Question 16

When you complain about your billing error,the creditor must acknowledge your letter within ____________ days.

Accepted Answer

A) 10 
B) 20 
C) 30 
D) 60 
E) 90 
A) 10 
B) 20 
C) 30 
D) 60 
E) 90

Question 17

Which of the following is not a valid reason for using credit?

Accepted Answer

A) to pay for a medical emergency 
B) to purchase a car for a homemaker returning to the workforce 
C) to purchase an item now for less money than it will cost later 
D) to pay for everyday living expenses 
E) to pay for a college education 
A) to pay for a medical emergency 
B) to purchase a car for a homemaker returning to the workforce 
C) to purchase an item now for less money than it will cost later 
D) to pay for everyday living expenses 
E) to pay for a college education

Question 18

Paul Carter is applying for a loan from a bank.The bank is concerned because Paul is an airline pilot for United Airlines.The bank thinks that Paul may be laid off in the near future.Which one of the 5 Cs of credit is the bank concerned with?

Accepted Answer

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

Question 19

With closed-end credit,generally the seller holds the title to the merchandise until the payments have been completed.

Accepted Answer

A) True 
 B)False

Question 20

Approximately how many credit card users would be classified as "convenience users" who generally pay off their balances in full each month?

Accepted Answer

A) 20% 
B) 33% 
C) 45% 
D) 50% 
E) 70% 
A) 20% 
B) 33% 
C) 45% 
D) 50% 
E) 70%

Which federal consumer credit law allows consumers to withhold payment for faulty or defective goods or services when purchased with a credit card?

Which federal consumer credit law requires issuers to display on monthly statements how long it would take to pay off the existing balance and the total interest cost if the consumer paid only the minimum due?

Most of the information in your credit file may be reported for only ______ years.

Department stores and gasoline companies are good places to obtain your first credit card.

If you have declared personal bankruptcy,then this fact may be reported by credit bureaus for ____________ years.

College students are not a prime target for credit card issuers.

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

When resolving a billing dispute,a creditor must either tell you why the bill is correct or:

If someone has stolen your identity,the Federal Trade Commission recommends that you contact the fraud departments of each of the three major credit bureaus.

Co-branded credit cards:

If your monthly net income is $1,500,what should be your maximum amount spent on credit payments?

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

The borrower's attitude toward his or her credit obligations is called:

Which one of the following is not a source that provides data to credit bureaus?

When you complain about your billing error,the creditor must acknowledge your letter within ____________ days.

Which of the following is not a valid reason for using credit?

Paul Carter is applying for a loan from a bank.The bank is concerned because Paul is an airline pilot for United Airlines.The bank thinks that Paul may be laid off in the near future.Which one of the 5 Cs of credit is the bank concerned with?

With closed-end credit,generally the seller holds the title to the merchandise until the payments have been completed.

Approximately how many credit card users would be classified as "convenience users" who generally pay off their balances in full each month?

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

Which federal consumer credit law allows consumers to withhold payment for faulty or defective goods or services when purchased with a credit card?

Which federal consumer credit law requires issuers to display on monthly statements how long it would take to pay off the existing balance and the total interest cost if the consumer paid only the minimum due?

Most of the information in your credit file may be reported for only ______ years.

Department stores and gasoline companies are good places to obtain your first credit card.

If you have declared personal bankruptcy,then this fact may be reported by credit bureaus for ____________ years.

College students are not a prime target for credit card issuers.

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

When resolving a billing dispute,a creditor must either tell you why the bill is correct or:

If someone has stolen your identity,the Federal Trade Commission recommends that you contact the fraud departments of each of the three major credit bureaus.

Co-branded credit cards:

If your monthly net income is $1,500,what should be your maximum amount spent on credit payments?

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

The borrower's attitude toward his or her credit obligations is called:

Which one of the following is not a source that provides data to credit bureaus?

When you complain about your billing error,the creditor must acknowledge your letter within ____________ days.

Which of the following is not a valid reason for using credit?

Paul Carter is applying for a loan from a bank.The bank is concerned because Paul is an airline pilot for United Airlines.The bank thinks that Paul may be laid off in the near future.Which one of the 5 Cs of credit is the bank concerned with?

With closed-end credit,generally the seller holds the title to the merchandise until the payments have been completed.

Approximately how many credit card users would be classified as "convenience users" who generally pay off their balances in full each month?

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