Question 1

If your debt-to-equity ratio is about ½, you have reached the upper limit of debt obligations.

Accepted Answer

A) True 
 B)False

Question 2

Generally, most of the information in your credit file may be reported for only ______ years.

Accepted Answer

A)  1 
B)  3 
C)  7 
D)  9 
E)  12 
A)  1 
B)  3 
C)  7 
D)  9 
E)  12

Question 3

A home equity loan is a good source of credit for daily expenses.

Accepted Answer

A) True 
 B)False

Question 4

A lender requires a cosigner even when a borrower meets the lender's criteria for making a loan.

Accepted Answer

A) True 
 B)False

Question 5

If your monthly net (after-tax) income is $2,000, what should be your maximum amount spent on credit payments?

Accepted Answer

A)  $200 
B)  $300 
C)  $400 
D)  $500 
E)  $600 
A)  $200 
B)  $300 
C)  $400 
D)  $500 
E)  $600

Question 6

If you are an Ontario resident and you have declared personal bankruptcy for the first time, that fact may be reported by credit bureaus for ____________ years.

Accepted Answer

A)  5 
B)  7 
C)  12 
D)  20 
E)  25 
A)  5 
B)  7 
C)  12 
D)  20 
E)  25

Question 7

Which of these is not 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)  No annual fees. 
A)  Facilitates online auction payments. 
B)  Offers password protected accounts. 
C)  Allows use of credit cards. 
D)  Transfers funds in U.S. dollars. 
E)  No annual fees.

Question 8

A common example of a consumer loan is:

Accepted Answer

A)  a credit card issued by a department store. 
B)  a credit card issued by VISA or MasterCard. 
C)  using overdraft protection at a bank. 
D)  using a cashier's check to pay for a purchase. 
E)  a mortgage loan. 
A)  a credit card issued by a department store. 
B)  a credit card issued by VISA or MasterCard. 
C)  using overdraft protection at a bank. 
D)  using a cashier's check to pay for a purchase. 
E)  a mortgage loan.

Question 9

Most consumers have only one choice in financing current purchases.

Accepted Answer

A) True 
 B)False

Question 10

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 11

If your credit application is denied, you

Accepted Answer

A)  can sue the credit rating agency. 
B)  can file a complaint against the merchant. 
C)  don't have any rights provided by law. 
D)  should ask to know specifically why. 
E)  can reapply for credit after 30 days. 
A)  can sue the credit rating agency. 
B)  can file a complaint against the merchant. 
C)  don't have any rights provided by law. 
D)  should ask to know specifically why. 
E)  can reapply for credit after 30 days.

Question 12

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 provincial consumer protection agency. 
D)  notify the creditor of the error. 
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 provincial consumer protection agency. 
D)  notify the creditor of the error. 
E)  contact your attorney to settle the matter.

Question 13

Which of the following is the best rating to have on your credit report?

Accepted Answer

A)  L0 
B)  L10 
C)  R0 
D)  R1 
E)  R9 
A)  L0 
B)  L10 
C)  R0 
D)  R1 
E)  R9

Question 14

The best way to maintain your credit rating is to

Accepted Answer

A)  use credit sparingly. 
B)  pay cash for your purchases. 
C)  repay your debts on time. 
D)  declare a Chapter 7 bankruptcy. 
E)  use as many credit cards as you can. 
A)  use credit sparingly. 
B)  pay cash for your purchases. 
C)  repay your debts on time. 
D)  declare a Chapter 7 bankruptcy. 
E)  use as many credit cards as you can.

Question 15

Debt-to-equity ratio is

Accepted Answer

A)  a useless ratio for determining your credit capacity. 
B)  calculated by dividing monthly debt payments by net monthly income. 
C)  determined by dividing your assets by liabilities. 
D)  calculated by dividing total liabilities by net worth. 
E)  rarely used by creditors in determining credit worthiness. 
A)  a useless ratio for determining your credit capacity. 
B)  calculated by dividing monthly debt payments by net monthly income. 
C)  determined by dividing your assets by liabilities. 
D)  calculated by dividing total liabilities by net worth. 
E)  rarely used by creditors in determining credit worthiness.

Question 16

What percentage of credit card users generally pay off their balance in full every month?

Accepted Answer

A)  20% 
B)  30% 
C)  50% 
D)  70% 
E)  more than 80% 
A)  20% 
B)  30% 
C)  50% 
D)  70% 
E)  more than 80%

Question 17

The best way to maintain your credit standing is to:

Accepted Answer

A)  carry no credit cards 
B)  pay all credit card invoices within 120 days 
C)  repay your debts on time 
D)  cancel any cars with outstanding balances 
E)  if the balance is high and you cannot pay, claim your card was lost and misused by a 3rd party 
A)  carry no credit cards 
B)  pay all credit card invoices within 120 days 
C)  repay your debts on time 
D)  cancel any cars with outstanding balances 
E)  if the balance is high and you cannot pay, claim your card was lost and misused by a 3rd party

Question 18

Your friends and neighbors can get credit information about you.

Accepted Answer

A) True 
 B)False

Question 19

Another name for credit when loans are made on a continuous basis and borrower is billed periodically for at least partial payment is known as:

Accepted Answer

A)  a line of credit. 
B)  convenience credit. 
C)  revolving credit. 
D)  installment credit. 
E)  bank card credit. 
A)  a line of credit. 
B)  convenience credit. 
C)  revolving credit. 
D)  installment credit. 
E)  bank card credit.

Question 20

Cobranding is the linking of a credit card with a business trade name offering "points" or premiums toward the purchase of a product or service.

Accepted Answer

A) True 
 B)False

If your debt-to-equity ratio is about ½, you have reached the upper limit of debt obligations.

Generally, most of the information in your credit file may be reported for only ______ years.

A home equity loan is a good source of credit for daily expenses.

A lender requires a cosigner even when a borrower meets the lender's criteria for making a loan.

If your monthly net (after-tax) income is $2,000, what should be your maximum amount spent on credit payments?

If you are an Ontario resident and you have declared personal bankruptcy for the first time, that fact may be reported by credit bureaus for ____________ years.

Which of these is not a characteristic of Paypal?

A common example of a consumer loan is:

Most consumers have only one choice in financing current purchases.

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

If your credit application is denied, you

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

Which of the following is the best rating to have on your credit report?

The best way to maintain your credit rating is to

Debt-to-equity ratio is

What percentage of credit card users generally pay off their balance in full every month?

The best way to maintain your credit standing is to:

Your friends and neighbors can get credit information about you.

Another name for credit when loans are made on a continuous basis and borrower is billed periodically for at least partial payment is known as:

Cobranding is the linking of a credit card with a business trade name offering "points" or premiums toward the purchase of a product or service.

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

Exam 5: Introduction to Consumer Credit

If your debt-to-equity ratio is about ½, you have reached the upper limit of debt obligations.

Generally, most of the information in your credit file may be reported for only ______ years.

A home equity loan is a good source of credit for daily expenses.

A lender requires a cosigner even when a borrower meets the lender's criteria for making a loan.

If your monthly net (after-tax) income is $2,000, what should be your maximum amount spent on credit payments?

If you are an Ontario resident and you have declared personal bankruptcy for the first time, that fact may be reported by credit bureaus for ____________ years.

Which of these is not a characteristic of Paypal?

A common example of a consumer loan is:

Most consumers have only one choice in financing current purchases.

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

If your credit application is denied, you

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

Which of the following is the best rating to have on your credit report?

The best way to maintain your credit rating is to

Debt-to-equity ratio is

What percentage of credit card users generally pay off their balance in full every month?

The best way to maintain your credit standing is to:

Your friends and neighbors can get credit information about you.

Another name for credit when loans are made on a continuous basis and borrower is billed periodically for at least partial payment is known as:

Cobranding is the linking of a credit card with a business trade name offering "points" or premiums toward the purchase of a product or service.

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