Question 1

With an open-end credit,you pay back one-time loans in a specified period of time in equal amounts.

Accepted Answer

A) True 
 B)False

Question 2

Which one of the following would not typically be 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 3

Most consumers have only one choice in financing current purchases.

Accepted Answer

A) True 
 B)False

Question 4

When you complain about your billing error,the creditor must acknowledge your letter within ____________ days.

Accepted Answer

A) 10 
B) 20 
C) 30 
D) 60 
E) 90 
A) 10 
B) 20 
C) 30 
D) 60 
E) 90

Question 5

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

Accepted Answer

A) paying for college 
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 college 
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 6

The Equal Credit Opportunity Act is very specific about how a person's age may be used in credit decisions.

Accepted Answer

A) True 
 B)False

Question 7

If you think that your bill is wrong,you should first:

Accepted Answer

A) contact the local credit bureau and inform it of the billing error. 
B) complain to the Better Business Bureau. 
C) contact your state consumer protection agency. 
D) notify the creditor in writing within 60 days after the bill was maileD. 
E) contact your attorney to settle the matter. 
A) contact the local credit bureau and inform it of the billing error. 
B) complain to the Better Business Bureau. 
C) contact your state consumer protection agency. 
D) notify the creditor in writing within 60 days after the bill was maileD. 
E) contact your attorney to settle the matter.

Question 8

Closed-end in credit is used for a specific purpose and involves a specified amount.

Accepted Answer

A) True 
 B)False

Question 9

By paying cash for a purchase,you:

Accepted Answer

A) forgo the opportunity to keep the cash in an interest-bearing account. 
B) always get a cash discount. 
C) can build a better credit rating. 
D) get better personal service from store employees. 
E) have a better selection of goods than if you use credit. 
A) forgo the opportunity to keep the cash in an interest-bearing account. 
B) always get a cash discount. 
C) can build a better credit rating. 
D) get better personal service from store employees. 
E) have a better selection of goods than if you use credit.

Question 10

The credit cardholders who pay off their balances in full each month are known as convenience users.

Accepted Answer

A) True 
 B)False

Question 11

What are the three most common types of closed-end credit?

Accepted Answer

The answer of What are the three most common types...

Question 12

Which one of the following is a disadvantage of using credit?

Accepted Answer

A) receiving advance notice of sales 
B) ease of overspending 
C) avoiding the necessity of carrying cash 
D) ease of returning merchandise 
E) having a record of all purchases 
A) receiving advance notice of sales 
B) ease of overspending 
C) avoiding the necessity of carrying cash 
D) ease of returning merchandise 
E) having a record of all purchases

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

Which federal credit law sets the procedure for promptly correcting billing mistakes?

Accepted Answer

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

Question 15

If someone has stolen your identity,the Federal Trade Commission recommends that you contact the fraud departments of each of the three major credit bureaus.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

Which one of the following is not a source that provides data to credit bureaus?

Accepted Answer

A) banks 
B) finance companies 
C) merchants 
D) court records 
E) Internal Revenue Service 
A) banks 
B) finance companies 
C) merchants 
D) court records 
E) Internal Revenue Service

Question 18

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 19

Jennifer Garner purchases a sofa,love seat and reclining chair for her family room and will make payments of $65 per month for the next twenty-four months.What type of credit did Jennifer 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 20

In evaluating your credit application,a lender may:

Accepted Answer

A) ask your age. 
B) want to know if you are on public assistance. 
C) require your marriage certificate. 
D) ask if you are married or divorceD. 
E) ask your race and nationality. 
A) ask your age. 
B) want to know if you are on public assistance. 
C) require your marriage certificate. 
D) ask if you are married or divorceD. 
E) ask your race and nationality.

With an open-end credit,you pay back one-time loans in a specified period of time in equal amounts.

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

Most consumers have only one choice in financing current purchases.

When you complain about your billing error,the creditor must acknowledge your letter within ____________ days.

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

The Equal Credit Opportunity Act is very specific about how a person's age may be used in credit decisions.

If you think that your bill is wrong,you should first:

Closed-end in credit is used for a specific purpose and involves a specified amount.

By paying cash for a purchase,you:

The credit cardholders who pay off their balances in full each month are known as convenience users.

What are the three most common types of closed-end credit?

Which one of the following is a disadvantage of using credit?

The debt-to-equity ratio is:

Which federal credit law sets the procedure for promptly correcting billing mistakes?

If someone has stolen your identity,the Federal Trade Commission recommends that you contact the fraud departments of each of the three major credit bureaus.

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

Which one of the following is not a source that provides data to credit bureaus?

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

Jennifer Garner purchases a sofa,love seat and reclining chair for her family room and will make payments of $65 per month for the next twenty-four months.What type of credit did Jennifer use?

In evaluating your credit application,a lender may:

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 an open-end credit,you pay back one-time loans in a specified period of time in equal amounts.

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

Most consumers have only one choice in financing current purchases.

When you complain about your billing error,the creditor must acknowledge your letter within ____________ days.

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

The Equal Credit Opportunity Act is very specific about how a person's age may be used in credit decisions.

If you think that your bill is wrong,you should first:

Closed-end in credit is used for a specific purpose and involves a specified amount.

By paying cash for a purchase,you:

The credit cardholders who pay off their balances in full each month are known as convenience users.

What are the three most common types of closed-end credit?

Which one of the following is a disadvantage of using credit?

The debt-to-equity ratio is:

Which federal credit law sets the procedure for promptly correcting billing mistakes?

If someone has stolen your identity,the Federal Trade Commission recommends that you contact the fraud departments of each of the three major credit bureaus.

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

Which one of the following is not a source that provides data to credit bureaus?

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

Jennifer Garner purchases a sofa,love seat and reclining chair for her family room and will make payments of $65 per month for the next twenty-four months.What type of credit did Jennifer use?

In evaluating your credit application,a lender may:

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