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 (not including house 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 (not including house 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

Which federal law regulates the use of credit reports,requires the deletion of obsolete information,and gives you access to your file?

Accepted Answer

A) Truth in Lending Act of 1969 
B) Fair Credit Billing Act of 1975 
C) Equal Credit Opportunity Act of 1975 
D) Fair Credit Reporting Act of 1971 
E) Fair Debit Collection Practices Act of 1978 
A) Truth in Lending Act of 1969 
B) Fair Credit Billing Act of 1975 
C) Equal Credit Opportunity Act of 1975 
D) Fair Credit Reporting Act of 1971 
E) Fair Debit Collection Practices Act of 1978

Question 3

Gordon Carey uses his Visa card to purchase a new digital camera and lens.What type of credit did Gordon 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 4

The credit bureau cannot charge you a disclosure fee if you ask to see your file 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 5

Which federal law limits a cardholder's liability for unauthorized use of a card to $50?

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

If you are a woman,a creditor must:

Accepted Answer

A) require a spouse to cosign a loan. 
B) ask about your birth control practices or family plans. 
C) consider whether you have a telephone listing in your own home. 
D) refuse individual credit in your own name. 
E) consider income from your part-time employment. 
A) require a spouse to cosign a loan. 
B) ask about your birth control practices or family plans. 
C) consider whether you have a telephone listing in your own home. 
D) refuse individual credit in your own name. 
E) consider income from your part-time employment.

Question 7

Michael Flowers believes that his credit card company has made an error in its monthly statement to him.Which consumer protection law specifies procedures he can use to dispute this monthly statement?

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 8

Your friends and neighbors can get credit information about you.

Accepted Answer

A) True 
 B)False

Question 9

You may not be denied credit because you receive Social Security or public assistance.

Accepted Answer

A) True 
 B)False

Question 10

There are very few valid reasons for using credit.

Accepted Answer

A) True 
 B)False

Question 11

When did installment credit explode on the American scene?

Accepted Answer

A) with the advent of the automobile in the early 1900s 
B) with the advent of television in the late 1940s 
C) just after World War II 
D) during the recession of the 1950s 
E) during the inflation of the 1970s 
A) with the advent of the automobile in the early 1900s 
B) with the advent of television in the late 1940s 
C) just after World War II 
D) during the recession of the 1950s 
E) during the inflation of the 1970s

Question 12

A loan officer is examining your income and the amount of your existing debt payments in deciding whether to make a loan to you today.Which aspect of the 5 Cs of lending is the loan officer most likely 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 13

Credit when effectively used,can help you have more and enjoy more.

Accepted Answer

A) True 
 B)False

Question 14

If your debit card is lost or stolen,you must work directly with the issuer.

Accepted Answer

A) True 
 B)False

Question 15

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) 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 16

The borrower's financial ability to meet credit obligations 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 17

Mike Cook has been receiving calls at work every two hours from a collection company that is trying to collect a past due loan from him.He believes this is harassment and that the collections company is not allowed to do this.Which consumer protection law provides protection from this type of harassment?

Accepted Answer

A) (
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) (
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

Most economists do not recognize consumer credit as a major force in the American economy.

Accepted Answer

A) True 
 B)False

Question 19

Maryann Lawrence wants to get a loan in just her name.She knows the creditor cannot:

Accepted Answer

A) refuse her credit if she is creditworthy 
B) consider income from her part-time job 
C) consider the payment history of all her joint accounts 
D) consider alimony payments she receives from her ex-husband 
E) consider child support payments she receives from her ex-husband 
A) refuse her credit if she is creditworthy 
B) consider income from her part-time job 
C) consider the payment history of all her joint accounts 
D) consider alimony payments she receives from her ex-husband 
E) consider child support payments she receives from her ex-husband

Question 20

If you have a complaint about consumer credit,you should first:

Accepted Answer

A) try to solve your problem directly with the creditor. 
B) contact your attorney. 
C) file a complaint with the Better Business Bureau. 
D) report it to the state consumer protection agency. 
E) complain to the Federal Reserve Bank in your district. 
A) try to solve your problem directly with the creditor. 
B) contact your attorney. 
C) file a complaint with the Better Business Bureau. 
D) report it to the state consumer protection agency. 
E) complain to the Federal Reserve Bank in your district.

The debt payments-to-income ratio is:

Which federal law regulates the use of credit reports,requires the deletion of obsolete information,and gives you access to your file?

Gordon Carey uses his Visa card to purchase a new digital camera and lens.What type of credit did Gordon use?

The credit bureau cannot charge you a disclosure fee if you ask to see your file within ______ days of being notified of a denial based on a credit report.

Which federal law limits a cardholder's liability for unauthorized use of a card to $50?

If you are a woman,a creditor must:

Michael Flowers believes that his credit card company has made an error in its monthly statement to him.Which consumer protection law specifies procedures he can use to dispute this monthly statement?

Your friends and neighbors can get credit information about you.

You may not be denied credit because you receive Social Security or public assistance.

There are very few valid reasons for using credit.

When did installment credit explode on the American scene?

A loan officer is examining your income and the amount of your existing debt payments in deciding whether to make a loan to you today.Which aspect of the 5 Cs of lending is the loan officer most likely looking at?

Credit when effectively used,can help you have more and enjoy more.

If your debit card is lost or stolen,you must work directly with the issuer.

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?

The borrower's financial ability to meet credit obligations is called:

Most economists do not recognize consumer credit as a major force in the American economy.

Maryann Lawrence wants to get a loan in just her name.She knows the creditor cannot:

If you have a complaint about consumer credit,you should first:

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

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Exam 6: Introduction to Consumer Credit

The debt payments-to-income ratio is:

Which federal law regulates the use of credit reports,requires the deletion of obsolete information,and gives you access to your file?

Gordon Carey uses his Visa card to purchase a new digital camera and lens.What type of credit did Gordon use?

The credit bureau cannot charge you a disclosure fee if you ask to see your file within ______ days of being notified of a denial based on a credit report.

Which federal law limits a cardholder's liability for unauthorized use of a card to $50?

If you are a woman,a creditor must:

Michael Flowers believes that his credit card company has made an error in its monthly statement to him.Which consumer protection law specifies procedures he can use to dispute this monthly statement?

Your friends and neighbors can get credit information about you.

You may not be denied credit because you receive Social Security or public assistance.

There are very few valid reasons for using credit.

When did installment credit explode on the American scene?

A loan officer is examining your income and the amount of your existing debt payments in deciding whether to make a loan to you today.Which aspect of the 5 Cs of lending is the loan officer most likely looking at?

Credit when effectively used,can help you have more and enjoy more.

If your debit card is lost or stolen,you must work directly with the issuer.

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?

The borrower's financial ability to meet credit obligations is called:

Most economists do not recognize consumer credit as a major force in the American economy.

Maryann Lawrence wants to get a loan in just her name.She knows the creditor cannot:

If you have a complaint about consumer credit,you should first:

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