Question 1

Although credit permits more immediate satisfaction of needs and desires, it

Accepted Answer

A)  does increase total purchasing power. 
B)  is always best to avoid credit purchases. 
C)  does not diminish your ability to buy more goods and services on credit. 
D)  has no opportunity costs attached to it. 
E)  does not increase total purchasing power 
A)  does increase total purchasing power. 
B)  is always best to avoid credit purchases. 
C)  does not diminish your ability to buy more goods and services on credit. 
D)  has no opportunity costs attached to it. 
E)  does not increase total purchasing power

Question 2

Financing from car dealers in affiliation with car manufacturers is called a conditional sales contract.

Accepted Answer

A) True 
 B)False

Question 3

Collateral refers to the borrower's assets or net worth.

Accepted Answer

A) True 
 B)False

Question 4

Which of these is a characteristic of Paypal?

Accepted Answer

A)  Facilitates online auction payments. 
B)  Offers password protected accounts. 
C)  Allows use of credit cards. 
D)  Transfers funds in U.S. dollars. 
E)  All are characteristics of Paypal 
A)  Facilitates online auction payments. 
B)  Offers password protected accounts. 
C)  Allows use of credit cards. 
D)  Transfers funds in U.S. dollars. 
E)  All are characteristics of Paypal

Question 5

Briefly list and describe the costs associated with credit cards

Accepted Answer

The major fees charged to customers are

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

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 8

Which of the following is not an example of a consumer loan?

Accepted Answer

A)  home mortgage 
B)  automobile loan 
C)  revolving credit 
D)  debt consolidation loan 
E)  demand loan 
A)  home mortgage 
B)  automobile loan 
C)  revolving credit 
D)  debt consolidation loan 
E)  demand loan

Question 9

"Shopaholics" and young adults are most vulnerable to misusing credit.

Accepted Answer

A) True 
 B)False

Question 10

Perhaps the greatest disadvantage of using credit is the temptation to overspend.

Accepted Answer

A) True 
 B)False

Question 11

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 12

Which of the following is considered to be a consumer loan?

Accepted Answer

A)  Debit card 
B)  Credit loan 
C)  Personal line of credit 
D)  Overdraft protection 
E)  Mortgage loan 
A)  Debit card 
B)  Credit loan 
C)  Personal line of credit 
D)  Overdraft protection 
E)  Mortgage loan

Question 13

Most creditors rely heavily on borrowers' bank reports when considering loan applications.

Accepted Answer

A) True 
 B)False

Question 14

The debt-to-equity ratio is calculated by dividing your total liabilities by your net worth.

Accepted Answer

A) True 
 B)False

Question 15

What can you do if your identity is stolen?

Accepted Answer

If your identity is stolen, take three a

Question 16

A good example of an open-end credit is

Accepted Answer

A)  the use of a bank credit card to make a purchase. 
B)  the mortgage loan from a savings and loan institution. 
C)  automobile loan from a credit union. 
D)  installment loan from a furniture store. 
E)  installment loan for purchasing a major appliance. 
A)  the use of a bank credit card to make a purchase. 
B)  the mortgage loan from a savings and loan institution. 
C)  automobile loan from a credit union. 
D)  installment loan from a furniture store. 
E)  installment loan for purchasing a major appliance.

Question 17

What are the two general rules of measuring credit capacity?

Accepted Answer

The two general rules of measuring credi

Question 18

The borrower's attitude toward his or her credit obligations is called

Accepted Answer

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

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

The advantages of credit include

Accepted Answer

A)  can purchase goods even when funds are low 
B)  carrying credit cards is safer than carrying cash 
C)  a credit card can allow you to carry up to a 30 day "float 
D)  credit cards may be used for identification when cashing a cheque 
E)  all of these are advantages of credit 
A)  can purchase goods even when funds are low 
B)  carrying credit cards is safer than carrying cash 
C)  a credit card can allow you to carry up to a 30 day "float 
D)  credit cards may be used for identification when cashing a cheque 
E)  all of these are advantages of credit

Although credit permits more immediate satisfaction of needs and desires, it

Financing from car dealers in affiliation with car manufacturers is called a conditional sales contract.

Collateral refers to the borrower's assets or net worth.

Which of these is a characteristic of Paypal?

Briefly list and describe the costs associated with credit cards

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

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

Which of the following is not an example of a consumer loan?

"Shopaholics" and young adults are most vulnerable to misusing credit.

Perhaps the greatest disadvantage of using credit is the temptation to overspend.

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

Which of the following is considered to be a consumer loan?

Most creditors rely heavily on borrowers' bank reports when considering loan applications.

The debt-to-equity ratio is calculated by dividing your total liabilities by your net worth.

What can you do if your identity is stolen?

A good example of an open-end credit is

What are the two general rules of measuring credit capacity?

The borrower's attitude toward his or her credit obligations is called

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

The advantages of credit include

Personal Financial Planning: An Introduction

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

The Banking Services of Financial Institutions

Choosing a Source Credit: the Costs of Credit Alternatives

The Finances of Housing

Home and Automobile Insurance

Life, Health, and Disability Insurance

Fundamentals of Investing

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Retirement Planning

Estate Planning

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Exam 5: Introduction to Consumer Credit

Although credit permits more immediate satisfaction of needs and desires, it

Financing from car dealers in affiliation with car manufacturers is called a conditional sales contract.

Collateral refers to the borrower's assets or net worth.

Which of these is a characteristic of Paypal?

Briefly list and describe the costs associated with credit cards

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

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

Which of the following is not an example of a consumer loan?

"Shopaholics" and young adults are most vulnerable to misusing credit.

Perhaps the greatest disadvantage of using credit is the temptation to overspend.

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

Which of the following is considered to be a consumer loan?

Most creditors rely heavily on borrowers' bank reports when considering loan applications.

The debt-to-equity ratio is calculated by dividing your total liabilities by your net worth.

What can you do if your identity is stolen?

A good example of an open-end credit is

What are the two general rules of measuring credit capacity?

The borrower's attitude toward his or her credit obligations is called

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

The advantages of credit include

Personal Financial Planning: An Introduction

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

The Banking Services of Financial Institutions

Choosing a Source Credit: the Costs of Credit Alternatives

The Finances of Housing

Home and Automobile Insurance

Life, Health, and Disability Insurance

Fundamentals of Investing

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Retirement Planning

Estate Planning

Filters