Question 1

The debt payments-to-income ratio is:

Accepted Answer

A) calculated by dividing total liabilities by net worth. 
B) calculated by dividing monthly debt payments (excluding mortgage 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 (excluding mortgage 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 2

If you believe you have been refused credit due to discrimination,what are three steps you can take?

Accepted Answer

1.Complain to the creditor.Let the credi

Question 3

Installment sales credit is a loan that allows you to receive high-priced items,such as large appliances or furniture.

Accepted Answer

A) True 
 B)False

Question 4

The baby boom generation currently represents about 30 percent of the population but holds nearly ____________ percent of the outstanding debt.

Accepted Answer

A)  80 
B) 70 
C) 60 
D) 50 
E) 40 
A)  80 
B) 70 
C) 60 
D) 50 
E) 40

Question 5

Which federal consumer credit law prohibits credit discrimination based on sex and marital status?

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 6

Which federal consumer credit law places the burden of proof for accurate credit information on the credit reporting agency rather than on the consumer?

Accepted Answer

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

Question 7

In the 5 Cs of credit,capital refers to your financial ability to meet credit obligations.

Accepted Answer

A) True 
 B)False

Question 8

What does it mean when a credit card is co-branded?

Accepted Answer

Co-branding is the linking of

Question 9

Which of the following places new restrictions on credit card lending and eliminates certain fees?

Accepted Answer

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

Question 10

What would be the maximum limit for an individual's debt-to-equity ratio,excluding the home mortgage?

Accepted Answer

A) 0.50 
B) 0.33 
C) 1.00 
D) 2.00 
E) 2.25 
A) 0.50 
B) 0.33 
C) 1.00 
D) 2.00 
E) 2.25

Question 11

If you cosign a loan:

Accepted Answer

A) you are only responsible for half of the debt obligation. 
B) you will be asked, but not required, to pay the loan in full if the borrower fails to pay. 
C) you will be required to pay the loan in full if the borrower defaults on the payments. 
D) the creditor must first try to collect from the borrower. 
E) the creditor is prohibited from garnishing your wages if you refuse to pay the loan in full. 
A) you are only responsible for half of the debt obligation. 
B) you will be asked, but not required, to pay the loan in full if the borrower fails to pay. 
C) you will be required to pay the loan in full if the borrower defaults on the payments. 
D) the creditor must first try to collect from the borrower. 
E) the creditor is prohibited from garnishing your wages if you refuse to pay the loan in full.

Question 12

A home equity loan is usually set up as a revolving line of credit,typically with a fixed interest rate.

Accepted Answer

A) True 
 B)False

Question 13

If you have a complaint about a bank in connection with any of the federal credit laws,who should you contact?

Accepted Answer

A) National Credit Union Association 
B) Federal Trade Commission 
C) Federal Reserve System 
D) Comptroller of the Currency 
E) Bank Vice-President 
A) National Credit Union Association 
B) Federal Trade Commission 
C) Federal Reserve System 
D) Comptroller of the Currency 
E) Bank Vice-President

Question 14

An unauthorized person who obtains a credit report under false pretenses may be:

Accepted Answer

A) sued by the lender. 
B) sued by the borrower. 
C) jailed for 5 years. 
D) subject to a fine and imprisonment. 
E) placed on a probation. 
A) sued by the lender. 
B) sued by the borrower. 
C) jailed for 5 years. 
D) subject to a fine and imprisonment. 
E) placed on a probation.

Question 15

What do creditors look for when you apply for credit?

Accepted Answer

Creditors determine credit wor

Question 16

Installment cash credit is a direct loan of money for personal purposes,home improvements,or vacation expenses.

Accepted Answer

A) True 
 B)False

Question 17

The credit bureau cannot charge you a fee for a copy of your credit report if you request it within ______ days of being notified of a denial based on a credit report.

Accepted Answer

A) 10 
B) 20 
C) 30 
D) 40 
E) 60 
A) 10 
B) 20 
C) 30 
D) 40 
E) 60

Question 18

Which of the following are most vulnerable to misusing credit?

Accepted Answer

A) Married couples 
B) Shopaholics and young adults 
C) Retired adults 
D) Savers 
E) None of the above 
A) Married couples 
B) Shopaholics and young adults 
C) Retired adults 
D) Savers 
E) None of the above

Question 19

Consumer credit refers to the use of credit for personal needs by individuals and families.

Accepted Answer

A) True 
 B)False

Question 20

In addition to department stores,where else is a good place to obtain your first credit card?

Accepted Answer

A) Banks 
B) Credit unions 
C) Savings and loans associations 
D) Gasoline companies 
E) Investment companies 
A) Banks 
B) Credit unions 
C) Savings and loans associations 
D) Gasoline companies 
E) Investment companies

The debt payments-to-income ratio is:

If you believe you have been refused credit due to discrimination,what are three steps you can take?

Installment sales credit is a loan that allows you to receive high-priced items,such as large appliances or furniture.

The baby boom generation currently represents about 30 percent of the population but holds nearly ____________ percent of the outstanding debt.

Which federal consumer credit law prohibits credit discrimination based on sex and marital status?

Which federal consumer credit law places the burden of proof for accurate credit information on the credit reporting agency rather than on the consumer?

In the 5 Cs of credit,capital refers to your financial ability to meet credit obligations.

What does it mean when a credit card is co-branded?

Which of the following places new restrictions on credit card lending and eliminates certain fees?

What would be the maximum limit for an individual's debt-to-equity ratio,excluding the home mortgage?

If you cosign a loan:

A home equity loan is usually set up as a revolving line of credit,typically with a fixed interest rate.

If you have a complaint about a bank in connection with any of the federal credit laws,who should you contact?

An unauthorized person who obtains a credit report under false pretenses may be:

What do creditors look for when you apply for credit?

Installment cash credit is a direct loan of money for personal purposes,home improvements,or vacation expenses.

The credit bureau cannot charge you a fee for a copy of your credit report if you request it within ______ days of being notified of a denial based on a credit report.

Which of the following are most vulnerable to misusing credit?

Consumer credit refers to the use of credit for personal needs by individuals and families.

In addition to department stores,where else is a good place to obtain your first 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

The debt payments-to-income ratio is:

If you believe you have been refused credit due to discrimination,what are three steps you can take?

Installment sales credit is a loan that allows you to receive high-priced items,such as large appliances or furniture.

The baby boom generation currently represents about 30 percent of the population but holds nearly ____________ percent of the outstanding debt.

Which federal consumer credit law prohibits credit discrimination based on sex and marital status?

Which federal consumer credit law places the burden of proof for accurate credit information on the credit reporting agency rather than on the consumer?

In the 5 Cs of credit,capital refers to your financial ability to meet credit obligations.

What does it mean when a credit card is co-branded?

Which of the following places new restrictions on credit card lending and eliminates certain fees?

What would be the maximum limit for an individual's debt-to-equity ratio,excluding the home mortgage?

If you cosign a loan:

A home equity loan is usually set up as a revolving line of credit,typically with a fixed interest rate.

If you have a complaint about a bank in connection with any of the federal credit laws,who should you contact?

An unauthorized person who obtains a credit report under false pretenses may be:

What do creditors look for when you apply for credit?

Installment cash credit is a direct loan of money for personal purposes,home improvements,or vacation expenses.

The credit bureau cannot charge you a fee for a copy of your credit report if you request it within ______ days of being notified of a denial based on a credit report.

Which of the following are most vulnerable to misusing credit?

Consumer credit refers to the use of credit for personal needs by individuals and families.

In addition to department stores,where else is a good place to obtain your first 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