Question 1

With open-end credit,you pay back one-time loans in a specified period of time in payments of equal amounts.

Accepted Answer

A) True 
 B)False

Question 2

A creditor may ignore your retirement income in rating your application.

Accepted Answer

A) True 
 B)False

Question 3

Mortgage loans,automobile loans,and installment loans for purchasing furniture or appliances are examples of:

Accepted Answer

A) a line of credit. 
B) a credit card loan. 
C) open-end credit. 
D) closed-end credit. 
E) convenience credit. 
A) a line of credit. 
B) a credit card loan. 
C) open-end credit. 
D) closed-end credit. 
E) convenience credit.

Question 4

The maximum dollar amount of credit the lender has made available to you is called:

Accepted Answer

A) revolving credit. 
B) line of credit. 
C) convenience credit. 
D) installment cash credit. 
E) single lump-sum credit. 
A) revolving credit. 
B) line of credit. 
C) convenience credit. 
D) installment cash credit. 
E) single lump-sum credit.

Question 5

Interest is a periodic charge for the use of credit.

Accepted Answer

A) True 
 B)False

Question 6

Lester McCann is thinking about getting a loan for a new car.He knows that when he goes shopping for a loan that all of the banks must report the annual percentage rate as well as all other terms and conditions of the loan.This will allow him to easily compare loans from different banks.Which consumer protection law requires full disclosure on all loans?

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 7

A lender requires a cosigner even when a borrower meets the lender's criteria for making a loan.

Accepted Answer

A) True 
 B)False

Question 8

Samantha Prescott knows that credit companies must evaluate her on the same basis as a borrower who is male.Which consumer protection law guarantees her this right?

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 9

Which federal credit law protects you against an unauthorized use of your credit card?

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 10

The Fair Credit Billing Act sets the procedures for promptly correcting billing errors.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A) Borrowing for a stay in a hospital because of appendicitis 
B) Borrowing to purchase a car so that you can go to work full-time 
C) Borrowing to buy a printer for your home office now because you know it will be twice as expensive in two years 
D) Borrowing to pay for your expensive dinner and movie every week 
E) All of these are valid reasons for using credit. 
A) Borrowing for a stay in a hospital because of appendicitis 
B) Borrowing to purchase a car so that you can go to work full-time 
C) Borrowing to buy a printer for your home office now because you know it will be twice as expensive in two years 
D) Borrowing to pay for your expensive dinner and movie every week 
E) All of these are valid reasons for using credit.

Question 12

A bank that is looking at your past payment records on your loans is most likely examining which aspect of the 5 Cs of lending?

Accepted Answer

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

Question 13

"Shopaholics" and young adults are most vulnerable to misusing credit.

Accepted Answer

A) True 
 B)False

Question 14

A friend comes to you for advice about improving their credit score.What advice would you give them? Make sure to include the five steps for improving your credit score.

Accepted Answer

You will want to make sure to tell them

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

With closed-end credit,loans are made on a continuous basis and you make at least a partial payment each billing period.

Accepted Answer

A) True 
 B)False

Question 17

If your credit application is denied,you:

Accepted Answer

A) should sue the credit rating agency. 
B) should file a complaint against the merchant. 
C) have no legal right to know why. 
D) are entitled to know the specific reason you were denied credit. 
E) can reapply for credit after 30 days. 
A) should sue the credit rating agency. 
B) should file a complaint against the merchant. 
C) have no legal right to know why. 
D) are entitled to know the specific reason you were denied credit. 
E) can reapply for credit after 30 days.

Question 18

Which federal consumer credit law requires creditors to inform applicants of acceptance or rejection of their credit application within 30 days of receiving a completed application?

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 19

Which federal law regulates the use of credit reports,requires the deletion of obsolete information,and gives consumers access to their file?

Accepted Answer

A) Truth in Lending Act of 1969 
B) Fair Credit Billing Act of 1975 
C) Equal Credit Opportunity Act of 1975 
D) Fair Credit Reporting Act of 1971 
E) Fair Debit Collection Practices Act of 1978 
A) Truth in Lending Act of 1969 
B) Fair Credit Billing Act of 1975 
C) Equal Credit Opportunity Act of 1975 
D) Fair Credit Reporting Act of 1971 
E) Fair Debit Collection Practices Act of 1978

Question 20

What should you do when you shop online using your credit card?

Accepted Answer

A) Delete immediately all records of your transactions 
B) Use a secure browser 
C) Give out your private information to anyone who requests it online 
D) Make sure to open and download all files sent you by strangers 
E) Give your password to anyone who requests it 
A) Delete immediately all records of your transactions 
B) Use a secure browser 
C) Give out your private information to anyone who requests it online 
D) Make sure to open and download all files sent you by strangers 
E) Give your password to anyone who requests it

With open-end credit,you pay back one-time loans in a specified period of time in payments of equal amounts.

A creditor may ignore your retirement income in rating your application.

Mortgage loans,automobile loans,and installment loans for purchasing furniture or appliances are examples of:

The maximum dollar amount of credit the lender has made available to you is called:

Interest is a periodic charge for the use of credit.

A lender requires a cosigner even when a borrower meets the lender's criteria for making a loan.

Samantha Prescott knows that credit companies must evaluate her on the same basis as a borrower who is male.Which consumer protection law guarantees her this right?

Which federal credit law protects you against an unauthorized use of your credit card?

The Fair Credit Billing Act sets the procedures for promptly correcting billing errors.

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

A bank that is looking at your past payment records on your loans is most likely examining which aspect of the 5 Cs of lending?

"Shopaholics" and young adults are most vulnerable to misusing credit.

A friend comes to you for advice about improving their credit score.What advice would you give them? Make sure to include the five steps for improving your credit score.

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

With closed-end credit,loans are made on a continuous basis and you make at least a partial payment each billing period.

If your credit application is denied,you:

Which federal consumer credit law requires creditors to inform applicants of acceptance or rejection of their credit application within 30 days of receiving a completed application?

Which federal law regulates the use of credit reports,requires the deletion of obsolete information,and gives consumers access to their file?

What should you do when you shop online using your credit card?

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

With open-end credit,you pay back one-time loans in a specified period of time in payments of equal amounts.

A creditor may ignore your retirement income in rating your application.

Mortgage loans,automobile loans,and installment loans for purchasing furniture or appliances are examples of:

The maximum dollar amount of credit the lender has made available to you is called:

Interest is a periodic charge for the use of credit.

A lender requires a cosigner even when a borrower meets the lender's criteria for making a loan.

Samantha Prescott knows that credit companies must evaluate her on the same basis as a borrower who is male.Which consumer protection law guarantees her this right?

Which federal credit law protects you against an unauthorized use of your credit card?

The Fair Credit Billing Act sets the procedures for promptly correcting billing errors.

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

A bank that is looking at your past payment records on your loans is most likely examining which aspect of the 5 Cs of lending?

"Shopaholics" and young adults are most vulnerable to misusing credit.

A friend comes to you for advice about improving their credit score.What advice would you give them? Make sure to include the five steps for improving your credit score.

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

With closed-end credit,loans are made on a continuous basis and you make at least a partial payment each billing period.

If your credit application is denied,you:

Which federal consumer credit law requires creditors to inform applicants of acceptance or rejection of their credit application within 30 days of receiving a completed application?

Which federal law regulates the use of credit reports,requires the deletion of obsolete information,and gives consumers access to their file?

What should you do when you shop online using your credit card?

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