Question 1

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 2

Charles Rickman is applying for a loan from the bank.The bank has determined that he has never been late making payments on past loans.Which 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 3

If you cosign,the creditor can collect this debt from you without first trying to collect from the borrower.

Accepted Answer

A) True 
 B)False

Question 4

Larry Arnold gets a direct loan of money to go on vacation with his family.He will repay the loan over the next twelve months.What type of credit did Larry use?

Accepted Answer

A) installment sales credit 
B) installment cash credit 
C) single lump sum credit 
D) revolving credit 
E) incidental credit 
A) installment sales credit 
B) installment cash credit 
C) single lump sum credit 
D) revolving credit 
E) incidental credit

Question 5

When imposters take your name,they are committing a crime.

Accepted Answer

A) True 
 B)False

Question 6

Mohammad Ishaque has checked his credit report and believes there is an error in it.Which consumer protection law specifies that he has the right to have errors in his credit report investigated?

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

If you have a problem with your creditor,the best solution is to:

Accepted Answer

A) file a lawsuit against the creditor. 
B) solve your problem directly with the creditor. 
C) complain to the Federal Reserve System. 
D) complain to the Board of Governors. 
E) wait for creditor action. 
A) file a lawsuit against the creditor. 
B) solve your problem directly with the creditor. 
C) complain to the Federal Reserve System. 
D) complain to the Board of Governors. 
E) wait for creditor action.

Question 8

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 9

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

Accepted Answer

A) True 
 B)False

Question 10

If you have declared personal bankruptcy,that 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 11

Karen is notified by her credit card company that the credit limit on her credit card has just been increased to $10,000.This is one example of a change related to

Accepted Answer

A) incidental credit. 
B) closed-end credit. 
C) a line of credit. 
D) installment sales credit. 
E) overdraft protection. 
A) incidental credit. 
B) closed-end credit. 
C) a line of credit. 
D) installment sales credit. 
E) overdraft protection.

Question 12

Which federal law protects you by requiring credit bureaus to furnish correct and complete information to creditors?

Accepted Answer

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

Question 13

The Fair Credit Reporting Act regulates the use of credit reports,requires the deletion of obsolete information,and gives consumers access to their files.

Accepted Answer

A) True 
 B)False

Question 14

The debt-to-equity ratio is calculated by dividing your monthly debt payments (not including house payments)by your net worth.

Accepted Answer

A) True 
 B)False

Question 15

Experts suggest that you spend no more than ____________ percent of your net income on credit purchases.

Accepted Answer

A) 10 
B) 20 
C) 30 
D) 40 
E) 50 
A) 10 
B) 20 
C) 30 
D) 40 
E) 50

Question 16

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 17

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 18

A term that refers to the borrower's assets or net worth is called:

Accepted Answer

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

Question 19

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 20

Consumer credit:

Accepted Answer

A) is a privilege of the affluent. 
B) dates back to colonial times. 
C) carries no finance charge. 
D) is not a major force in our economy. 
E) use has been declining in recent years. 
A) is a privilege of the affluent. 
B) dates back to colonial times. 
C) carries no finance charge. 
D) is not a major force in our economy. 
E) use has been declining in recent years.

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

Charles Rickman is applying for a loan from the bank.The bank has determined that he has never been late making payments on past loans.Which of the 5 Cs of credit is the bank looking at?

If you cosign,the creditor can collect this debt from you without first trying to collect from the borrower.

Larry Arnold gets a direct loan of money to go on vacation with his family.He will repay the loan over the next twelve months.What type of credit did Larry use?

When imposters take your name,they are committing a crime.

Mohammad Ishaque has checked his credit report and believes there is an error in it.Which consumer protection law specifies that he has the right to have errors in his credit report investigated?

If you have a problem with your creditor,the best solution is to:

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.

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

Karen is notified by her credit card company that the credit limit on her credit card has just been increased to $10,000.This is one example of a change related to

Which federal law protects you by requiring credit bureaus to furnish correct and complete information to creditors?

The Fair Credit Reporting Act regulates the use of credit reports,requires the deletion of obsolete information,and gives consumers access to their files.

The debt-to-equity ratio is calculated by dividing your monthly debt payments (not including house payments)by your net worth.

Experts suggest that you spend no more than ____________ percent of your net income on credit purchases.

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

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

A term that refers to the borrower's assets or net worth is called:

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?

Consumer credit:

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 Stocks

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

Charles Rickman is applying for a loan from the bank.The bank has determined that he has never been late making payments on past loans.Which of the 5 Cs of credit is the bank looking at?

If you cosign,the creditor can collect this debt from you without first trying to collect from the borrower.

Larry Arnold gets a direct loan of money to go on vacation with his family.He will repay the loan over the next twelve months.What type of credit did Larry use?

When imposters take your name,they are committing a crime.

Mohammad Ishaque has checked his credit report and believes there is an error in it.Which consumer protection law specifies that he has the right to have errors in his credit report investigated?

If you have a problem with your creditor,the best solution is to:

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.

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

Karen is notified by her credit card company that the credit limit on her credit card has just been increased to $10,000.This is one example of a change related to

Which federal law protects you by requiring credit bureaus to furnish correct and complete information to creditors?

The Fair Credit Reporting Act regulates the use of credit reports,requires the deletion of obsolete information,and gives consumers access to their files.

The debt-to-equity ratio is calculated by dividing your monthly debt payments (not including house payments)by your net worth.

Experts suggest that you spend no more than ____________ percent of your net income on credit purchases.

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

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

A term that refers to the borrower's assets or net worth is called:

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?

Consumer credit:

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 Stocks

Investing in Bonds

Investing in Mutual Funds

Investing in Real Estate and Other Investment Alternatives

Starting Early: Retirement Planning

Estate Planning

Filters