Question 1

The debt-to-equity ratio is calculated by dividing your monthly debt payments by your net worth.

Accepted Answer

A) True 
 B)False

Question 2

Elizabeth has a monthly net income of $1,600.She has a house payment of $600 per month,a car loan with payments of $400 per month,a Visa card with payments of $75 per month,and a credit card with a local department store with payments of $125 per month.What is Elizabeth's debt payment-to-income ratio? Is she within range of what experts suggest you spend on consumer credit payments?

Accepted Answer

Elizabeth's net monthly income = $1,600

Question 3

If your debit card is lost or stolen,you must work directly with the issuer.

Accepted Answer

A) True 
 B)False

Question 4

What is revolving check credit?

Accepted Answer

Revolving check credit is a prearranged

Question 5

The information in your credit report is primarily used by the credit bureau to calculate your:

Accepted Answer

A) debt to equity ratio. 
B) FICO credit score. 
C) debt payment to income ratio. 
D) liquidity ratio. 
E) long term capitalization ratio. 
A) debt to equity ratio. 
B) FICO credit score. 
C) debt payment to income ratio. 
D) liquidity ratio. 
E) long term capitalization ratio.

Question 6

Which one of the following would not be considered closed-end credit?

Accepted Answer

A) Home mortgage 
B) Installment loan to purchase new furniture 
C) Line of credit from your bank 
D) Automobile loan 
E) Single lump-sum credit loan due in 90 days 
A) Home mortgage 
B) Installment loan to purchase new furniture 
C) Line of credit from your bank 
D) Automobile loan 
E) Single lump-sum credit loan due in 90 days

Question 7

Credit bureaus obtain their data from banks,finance companies,merchants,credit card companies,other creditors,and court records.

Accepted Answer

A) True 
 B)False

Question 8

With a revolving line of credit,borrowings are permitted up to a specified limit and for a stated period,usually 5 to 10 years.

Accepted Answer

A) True 
 B)False

Question 9

One common type of closed-end credit is:

Accepted Answer

A) a line of credit. 
B) convenience credit. 
C) revolving credit. 
D) installment cash credit. 
E) bank card credit. 
A) a line of credit. 
B) convenience credit. 
C) revolving credit. 
D) installment cash credit. 
E) bank card credit.

Question 10

Stored-value cards:

Accepted Answer

A) look nothing like typical debit cards. 
B) have decreased in popularity since the mid 
C) work the same as a credit card. 
D) can lose their value if a retailer goes bankrupt. 
E) are currently being used for very limited purposes. 
A) look nothing like typical debit cards. 
B) have decreased in popularity since the mid 
C) work the same as a credit card. 
D) can lose their value if a retailer goes bankrupt. 
E) are currently being used for very limited purposes.

Question 11

Which federal consumer credit law prohibits creditors from requiring women to reapply for credit upon a change in marital status?

Accepted Answer

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

Question 12

How many alternatives do most consumers have in financing current purchases?

Accepted Answer

A) 1 
B) 2 
C) 3 
D) 4 
E) unlimited 
A) 1 
B) 2 
C) 3 
D) 4 
E) unlimited

Question 13

The debt-to-equity ratio is:

Accepted Answer

A) calculated by dividing total liabilities by net worth. 
B) calculated by dividing monthly debt payments by net monthly income. 
C) determined by dividing your assets by your liabilities. 
D) a useless ratio for determining your credit capacity. 
E) rarely used by creditors in determining credit worthiness. 
A) calculated by dividing total liabilities by net worth. 
B) calculated by dividing monthly debt payments by net monthly income. 
C) determined by dividing your assets by your liabilities. 
D) a useless ratio for determining your credit capacity. 
E) rarely used by creditors in determining credit worthiness.

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

Which one of the following would not be a good use of a home equity loan?

Accepted Answer

A) Paying for a college education 
B) Buying a new boat 
C) Putting a new roof on your house 
D) Paying medical bills 
E) Adding a deck on the back of your house 
A) Paying for a college education 
B) Buying a new boat 
C) Putting a new roof on your house 
D) Paying medical bills 
E) Adding a deck on the back of your house

Question 16

Debit cards are often called:

Accepted Answer

A) bank cards. 
B) ATM cards. 
C) cash cards. 
D) check cards. 
E) All of these 
A) bank cards. 
B) ATM cards. 
C) cash cards. 
D) check cards. 
E) All of these

Question 17

The Consumer Financial Protection Bureau receives an average of how many complaints about the credit bureaus every year?

Accepted Answer

A) 5,000 
B) 25,000 
C) 36,000 
D) 42,000 
E) 50,000 
A) 5,000 
B) 25,000 
C) 36,000 
D) 42,000 
E) 50,000

Question 18

How can you protect yourself against credit card fraud?

Accepted Answer

Here are the ways to

Question 19

In the 5 Cs of credit,collateral is an asset that you pledge to a financial institution to obtain a loan.

Accepted Answer

A) True 
 B)False

Question 20

In the 5 Cs of credit,capital refers to your assets or net worth.

Accepted Answer

A) True 
 B)False

The debt-to-equity ratio is calculated by dividing your monthly debt payments by your net worth.

If your debit card is lost or stolen,you must work directly with the issuer.

What is revolving check credit?

The information in your credit report is primarily used by the credit bureau to calculate your:

Which one of the following would not be considered closed-end credit?

Credit bureaus obtain their data from banks,finance companies,merchants,credit card companies,other creditors,and court records.

With a revolving line of credit,borrowings are permitted up to a specified limit and for a stated period,usually 5 to 10 years.

One common type of closed-end credit is:

Stored-value cards:

Which federal consumer credit law prohibits creditors from requiring women to reapply for credit upon a change in marital status?

How many alternatives do most consumers have in financing current purchases?

The debt-to-equity ratio is:

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

Which one of the following would not be a good use of a home equity loan?

Debit cards are often called:

The Consumer Financial Protection Bureau receives an average of how many complaints about the credit bureaus every year?

How can you protect yourself against credit card fraud?

In the 5 Cs of credit,collateral is an asset that you pledge to a financial institution to obtain a loan.

In the 5 Cs of credit,capital refers to your assets or net worth.

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

The debt-to-equity ratio is calculated by dividing your monthly debt payments by your net worth.

If your debit card is lost or stolen,you must work directly with the issuer.

What is revolving check credit?

The information in your credit report is primarily used by the credit bureau to calculate your:

Which one of the following would not be considered closed-end credit?

Credit bureaus obtain their data from banks,finance companies,merchants,credit card companies,other creditors,and court records.

With a revolving line of credit,borrowings are permitted up to a specified limit and for a stated period,usually 5 to 10 years.

One common type of closed-end credit is:

Stored-value cards:

Which federal consumer credit law prohibits creditors from requiring women to reapply for credit upon a change in marital status?

How many alternatives do most consumers have in financing current purchases?

The debt-to-equity ratio is:

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

Which one of the following would not be a good use of a home equity loan?

Debit cards are often called:

The Consumer Financial Protection Bureau receives an average of how many complaints about the credit bureaus every year?

How can you protect yourself against credit card fraud?

In the 5 Cs of credit,collateral is an asset that you pledge to a financial institution to obtain a loan.

In the 5 Cs of credit,capital refers to your assets or net worth.

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