Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

Which one of the following is an advantage of using credit?

Accepted Answer

A) potential bankruptcy 
B) spending beyond your budget 
C) funding an emergency expense 
D) committing future income to pay for current purchases 
E) incurring interest charges 
A) potential bankruptcy 
B) spending beyond your budget 
C) funding an emergency expense 
D) committing future income to pay for current purchases 
E) incurring interest charges

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

The aging of the baby boom generation has added to the growth of consumer credit.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is a credit bureau?

Accepted Answer

A) Federal Reserve 
B) Federal Trade Commission 
C) Better Business Bureau 
D) Experian 
E) FICO 
A) Federal Reserve 
B) Federal Trade Commission 
C) Better Business Bureau 
D) Experian 
E) FICO

Question 6

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

Accepted Answer

The answer of What are a few things to consider...

Question 7

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 8

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 9

Cobranded credit cards:

Accepted Answer

A) are often linked with a certain business trade name offering "points" 
B) help build customer loyalty 
C) allow the cardholder to earn rebates on products and services 
D) have increased in popularity since 1992 
E) all other answers are all correct 
A) are often linked with a certain business trade name offering "points" 
B) help build customer loyalty 
C) allow the cardholder to earn rebates on products and services 
D) have increased in popularity since 1992 
E) all other answers are all correct

Question 10

What is consumer credit? What are its advantages and disadvantages?

Accepted Answer

The answer of What is consumer credit? What are its...

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

What should you do when you shop on-line 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 on-line 
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 on-line 
D) make sure to open and download all files sent you by strangers 
E) give your password to anyone who requests it

Question 13

A credit arrangement that has no extra costs and no specific repayment plan is called:

Accepted Answer

A) installment sales credit. 
B) single lump-sum credit. 
C) line of credit. 
D) incidental credit. 
E) revolving check credit. 
A) installment sales credit. 
B) single lump-sum credit. 
C) line of credit. 
D) incidental credit. 
E) revolving check credit.

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

What is revolving check credit?

Accepted Answer

The answer of What is revolving check credit?...

Question 16

Which federal consumer credit law provides specific cost disclosure requirements for the annual percentage rate and the finance charge as a dollar amount?

Accepted Answer

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

Question 17

Dave's take-home-pay per month is $2,200.What is the maximum dollar amount of debt payments,excluding a home mortgage,he should have?

Accepted Answer

A) $880 
B) $440 
C) $330 
D) $220 
E) $0 
A) $880 
B) $440 
C) $330 
D) $220 
E) $0

Question 18

In the 5 Cs of credit,conditions refers to general economic conditions that can affect your ability to repay a loan.

Accepted Answer

A) True 
 B)False

Question 19

Paul Carter is applying for a loan from a bank.The bank is concerned because Paul is an airline pilot for United Airlines.The bank thinks that Paul may be laid off in the near future.Which one of the 5 Cs of credit is the bank concerned with?

Accepted Answer

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

Question 20

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 if 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 if 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.

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

Which one of the following is an advantage of using credit?

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

The aging of the baby boom generation has added to the growth of consumer credit.

Which of the following is a credit bureau?

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

Which FICO credit score would represent the least risky borrower?

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

Cobranded credit cards:

What is consumer credit? What are its advantages and disadvantages?

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

What should you do when you shop on-line using your credit card?

A credit arrangement that has no extra costs and no specific repayment plan is called:

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

What is revolving check credit?

Which federal consumer credit law provides specific cost disclosure requirements for the annual percentage rate and the finance charge as a dollar amount?

Dave's take-home-pay per month is $2,200.What is the maximum dollar amount of debt payments,excluding a home mortgage,he should have?

In the 5 Cs of credit,conditions refers to general economic conditions that can affect your ability to repay a loan.

Paul Carter is applying for a loan from a bank.The bank is concerned because Paul is an airline pilot for United Airlines.The bank thinks that Paul may be laid off in the near future.Which one of the 5 Cs of credit is the bank concerned with?

If you cosign a loan:

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 a revolving line of credit,borrowings are permitted up to a specified limit and for a stated period.

Which one of the following is an advantage of using credit?

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

The aging of the baby boom generation has added to the growth of consumer credit.

Which of the following is a credit bureau?

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

Which FICO credit score would represent the least risky borrower?

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

Cobranded credit cards:

What is consumer credit? What are its advantages and disadvantages?

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

What should you do when you shop on-line using your credit card?

A credit arrangement that has no extra costs and no specific repayment plan is called:

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

What is revolving check credit?

Which federal consumer credit law provides specific cost disclosure requirements for the annual percentage rate and the finance charge as a dollar amount?

Dave's take-home-pay per month is $2,200.What is the maximum dollar amount of debt payments,excluding a home mortgage,he should have?

In the 5 Cs of credit,conditions refers to general economic conditions that can affect your ability to repay a loan.

Paul Carter is applying for a loan from a bank.The bank is concerned because Paul is an airline pilot for United Airlines.The bank thinks that Paul may be laid off in the near future.Which one of the 5 Cs of credit is the bank concerned with?

If you cosign a loan:

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