Question 1

It is safer to use credit,since charge accounts and credit cards let you shop and travel without carrying a large amount of cash.

Accepted Answer

A) True 
 B)False

Question 2

Karen Price has determined that her net worth is $30,000,excluding her home.She owes $80,000 on her mortgage and $15,000 on a car loan.What is Karen's debt-to-equity ratio?

Accepted Answer

A) 3.2 
B) 2.0 
C) 0.5 
D) 2.7 
E) 0.3 
A) 3.2 
B) 2.0 
C) 0.5 
D) 2.7 
E) 0.3

Question 3

Robert Smith has monthly net income of $1,050.He has a house payment of $450 per month,a car loan with payments of $250 per month,a Visa card with payments of $50 per month,and a credit card with a local department store with payments of $100 per month.What is Robert's debt payments-to-income ratio?

Accepted Answer

A) 2.63 
B) 1.24 
C) 0.81 
D) 0.38 
E) 0.50 
A) 2.63 
B) 1.24 
C) 0.81 
D) 0.38 
E) 0.50

Question 4

What should you do if your identity is stolen?

Accepted Answer

A) File a police report. 
B) Ignore the problem and hope that it will go away. 
C) Close all of your accounts and do not say anything to anyone. 
D) Pay all the charges for which you are billed, even if they are not yours, so you can keep your credit accounts. 
E) All of these 
A) File a police report. 
B) Ignore the problem and hope that it will go away. 
C) Close all of your accounts and do not say anything to anyone. 
D) Pay all the charges for which you are billed, even if they are not yours, so you can keep your credit accounts. 
E) All of these

Question 5

What are a few things to consider before you cosign a loan?

Accepted Answer

Here are a few things to consider before

Question 6

Jane Calvert is applying for a loan from a bank.The bank knows she owns a house worth $150,000 and a car with a trade-in value of $15,000 as well as other personal assets worth approximately $50,000.Which one of the 5 Cs of credit is the bank 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 7

In evaluating your credit application,a lender may:

Accepted Answer

A)  ask your age. 
B) deny you credit if you are on public assistance. 
C) require your parent's address. 
D) not ask your social security number. 
E) discriminate against your race and nationality. 
A)  ask your age. 
B) deny you credit if you are on public assistance. 
C) require your parent's address. 
D) not ask your social security number. 
E) discriminate against your race and nationality.

Question 8

Brian Porter's net worth is $110,000,excluding his home.His liabilities of $50,000 include all of his credit card balances and the balance due on his auto loan and home improvement loan.His townhouse has a market value of $220,000 and he owes $190,000 to his mortgage company.What is Brian's debt-to-equity ratio?

Accepted Answer

A) 0.65 
B) 0.74 
C) 0.45 
D) 0.35 
E) 0.28 
A) 0.65 
B) 0.74 
C) 0.45 
D) 0.35 
E) 0.28

Question 9

What are the two basic types of credit? Give examples of both.

Accepted Answer

Two basic types of consumer credit are c

Question 10

If you cosign a loan and the debt is not paid off,then this fact does not become a part of your credit record.

Accepted Answer

A) True 
 B)False

Question 11

Single lump-sum credit is a loan that must be repaid in total on a specified day,usually within 30 to 90 days.

Accepted Answer

A) True 
 B)False

Question 12

Jim Roy visits the doctor for his annual check-up which costs $85.He is billed for this at the end of the month.What type of credit did Jim use?

Accepted Answer

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

Question 13

Describe the federal law that protects you from billing mistakes.

Accepted Answer

The Fair Credit Billing Act (FCBA),passe

Question 14

Consumer credit dates back to colonial times.

Accepted Answer

A) True 
 B)False

Question 15

Consumer credit is based on trust in people's ability and willingness to pay bills when due.

Accepted Answer

A) True 
 B)False

Question 16

A home equity loan is based on the difference between the current market value of your home and the amount you still owe on your mortgage.

Accepted Answer

A) True 
 B)False

Question 17

Which FICO credit score would represent the least risky borrower?

Accepted Answer

A) 415 
B) 562 
C) 685 
D) 702 
E) 825 
A) 415 
B) 562 
C) 685 
D) 702 
E) 825

Question 18

If you think you have been discriminated against by consumer reporting agencies or creditors,you should file a complaint with which government agency?

Accepted Answer

A) Federal Reserve Board 
B) Federal Deposit Insurance Corporation 
C) Consumer Financial Protection Bureau 
D) Office of the Comptroller of the Currency 
E) National Credit Union Administration 
A) Federal Reserve Board 
B) Federal Deposit Insurance Corporation 
C) Consumer Financial Protection Bureau 
D) Office of the Comptroller of the Currency 
E) National Credit Union Administration

Question 19

To protect yourself against credit card fraud,you should sign your new credit cards as soon as they arrive.

Accepted Answer

A) True 
 B)False

Question 20

The Consumer Financial Protection Bureau receives more consumer complaints about credit bureaus than about any other industry.

Accepted Answer

A) True 
 B)False

It is safer to use credit,since charge accounts and credit cards let you shop and travel without carrying a large amount of cash.

Karen Price has determined that her net worth is $30,000,excluding her home.She owes $80,000 on her mortgage and $15,000 on a car loan.What is Karen's debt-to-equity ratio?

Robert Smith has monthly net income of $1,050.He has a house payment of $450 per month,a car loan with payments of $250 per month,a Visa card with payments of $50 per month,and a credit card with a local department store with payments of $100 per month.What is Robert's debt payments-to-income ratio?

What should you do if your identity is stolen?

What are a few things to consider before you cosign a loan?

Jane Calvert is applying for a loan from a bank.The bank knows she owns a house worth $150,000 and a car with a trade-in value of $15,000 as well as other personal assets worth approximately $50,000.Which one of the 5 Cs of credit is the bank looking at?

In evaluating your credit application,a lender may:

What are the two basic types of credit? Give examples of both.

If you cosign a loan and the debt is not paid off,then this fact does not become a part of your credit record.

Single lump-sum credit is a loan that must be repaid in total on a specified day,usually within 30 to 90 days.

Jim Roy visits the doctor for his annual check-up which costs $85.He is billed for this at the end of the month.What type of credit did Jim use?

Describe the federal law that protects you from billing mistakes.

Consumer credit dates back to colonial times.

Consumer credit is based on trust in people's ability and willingness to pay bills when due.

A home equity loan is based on the difference between the current market value of your home and the amount you still owe on your mortgage.

Which FICO credit score would represent the least risky borrower?

If you think you have been discriminated against by consumer reporting agencies or creditors,you should file a complaint with which government agency?

To protect yourself against credit card fraud,you should sign your new credit cards as soon as they arrive.

The Consumer Financial Protection Bureau receives more consumer complaints about credit bureaus than about any other industry.

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

It is safer to use credit,since charge accounts and credit cards let you shop and travel without carrying a large amount of cash.

Karen Price has determined that her net worth is $30,000,excluding her home.She owes $80,000 on her mortgage and $15,000 on a car loan.What is Karen's debt-to-equity ratio?

What should you do if your identity is stolen?

What are a few things to consider before you cosign a loan?

Jane Calvert is applying for a loan from a bank.The bank knows she owns a house worth $150,000 and a car with a trade-in value of $15,000 as well as other personal assets worth approximately $50,000.Which one of the 5 Cs of credit is the bank looking at?

In evaluating your credit application,a lender may:

What are the two basic types of credit? Give examples of both.

If you cosign a loan and the debt is not paid off,then this fact does not become a part of your credit record.

Single lump-sum credit is a loan that must be repaid in total on a specified day,usually within 30 to 90 days.

Jim Roy visits the doctor for his annual check-up which costs $85.He is billed for this at the end of the month.What type of credit did Jim use?

Describe the federal law that protects you from billing mistakes.

Consumer credit dates back to colonial times.

Consumer credit is based on trust in people's ability and willingness to pay bills when due.

A home equity loan is based on the difference between the current market value of your home and the amount you still owe on your mortgage.

Which FICO credit score would represent the least risky borrower?

If you think you have been discriminated against by consumer reporting agencies or creditors,you should file a complaint with which government agency?

To protect yourself against credit card fraud,you should sign your new credit cards as soon as they arrive.

The Consumer Financial Protection Bureau receives more consumer complaints about credit bureaus than about any other industry.

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