Question 1

Identity theft is a growing problem that could damage your credit rating.

Accepted Answer

A) True 
 B)False  True

Question 2

Using more than 20 percent of one's take-home income to pay off consumer debt is one of the signs that one may be headed for serious credit problems.

Accepted Answer

A) True 
 B)False  True

Question 3

The following information provides insight to a lender about the applicant's credit worthiness except:

Accepted Answer

A)  personal/family matters 
B)  housing 
C)  employment 
D)  income 
E)  all of the above provide insight 
A)  personal/family matters 
B)  housing 
C)  employment 
D)  income 
E)  all of the above provide insight E

Question 4

Revolving credit lines are often accessed by writing checks.

Accepted Answer

A) True 
 B)False

Question 5

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-In the year after the Credit Card Act of 2009 was passed,there was a(n)[increase | decrease] in the use of debit cards relative to credit cards.

Accepted Answer

A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement. 
A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement.

Question 6

The required monthly payment on an open account will be the smaller of a minimum dollar amount or a specified percentage of the balance.

Accepted Answer

A) True 
 B)False

Question 7

Never adding up all one's bills is one of the signs that one may be headed for serious credit problems.

Accepted Answer

A) True 
 B)False

Question 8

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-The majority of reduction in consumer indebtedness is due to [loan defaults | loan repayments]

Accepted Answer

A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement. 
A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement.

Question 9

A debt safety ratio of 5% would generally be a signal of financial trouble ahead.

Accepted Answer

A) True 
 B)False

Question 10

Indebtedness relative to household income decreased due to all but

Accepted Answer

A)  home sales 
B)  home foreclosures 
C)  fewer consumer loans 
D)  consumer loan defaults 
E)  surge in home mortgage refinancing 
A)  home sales 
B)  home foreclosures 
C)  fewer consumer loans 
D)  consumer loan defaults 
E)  surge in home mortgage refinancing

Question 11

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-Most of your debts would be totally discharged under Chapter [7 | 13] of the federal bankruptcy law.

Accepted Answer

A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement. 
A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement.

Question 12

Families who have a source of income and who want to retain their assets above the protected amount would select Chapter 13 rather than Chapter 7 bankruptcy.

Accepted Answer

A) True 
 B)False

Question 13

One can and should check his credit bureau file regularly.

Accepted Answer

A) True 
 B)False

Question 14

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-Using [credit | savings] to handle financial emergencies is the recommended choice.

Accepted Answer

A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement. 
A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement.

Question 15

The majority of reduction in consumer indebtedness is due to home and consumer loan defaults.

Accepted Answer

A) True 
 B)False

Question 16

For a person who sometimes pays his entire credit balance and sometimes pays the minimum payment,which calculation method would be the least expensive?

Accepted Answer

A)  average daily balance including new purchases 
B)  average daily balance excluding new purchases 
C)  two-cycle average daily balance including new purchases 
D)  two-cycle average daily balance excluding new purchases 
E)  both b and d would produce the same,low finance charge 
A)  average daily balance including new purchases 
B)  average daily balance excluding new purchases 
C)  two-cycle average daily balance including new purchases 
D)  two-cycle average daily balance excluding new purchases 
E)  both b and d would produce the same,low finance charge

Question 17

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select
-One condition of a secured credit card is that the holder must [pay a higher rate of interest | deposit an amount equal to the credit line in a savings account].

Accepted Answer

A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement. 
A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement.

Question 18

Always paying cash is helpful in establishing a high level of creditworthiness.

Accepted Answer

A) True 
 B)False

Question 19

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-The first step to take if you are having credit difficulties would be to [talk to creditors | consult a credit counselor].

Accepted Answer

A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement. 
A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement.

Question 20

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select
-Most bank credit cards have interest rates that will [remain the same as long as you hold the card | be adjusted as interest rates in general rise and fall].

Accepted Answer

A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement. 
A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement.

Identity theft is a growing problem that could damage your credit rating.

Using more than 20 percent of one's take-home income to pay off consumer debt is one of the signs that one may be headed for serious credit problems.

The following information provides insight to a lender about the applicant's credit worthiness except:

Revolving credit lines are often accessed by writing checks.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -In the year after the Credit Card Act of 2009 was passed,there was a(n)[increase | decrease] in the use of debit cards relative to credit cards.

The required monthly payment on an open account will be the smaller of a minimum dollar amount or a specified percentage of the balance.

Never adding up all one's bills is one of the signs that one may be headed for serious credit problems.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -The majority of reduction in consumer indebtedness is due to [loan defaults | loan repayments]

A debt safety ratio of 5% would generally be a signal of financial trouble ahead.

Indebtedness relative to household income decreased due to all but

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -Most of your debts would be totally discharged under Chapter [7 | 13] of the federal bankruptcy law.

Families who have a source of income and who want to retain their assets above the protected amount would select Chapter 13 rather than Chapter 7 bankruptcy.

One can and should check his credit bureau file regularly.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -Using [credit | savings] to handle financial emergencies is the recommended choice.

The majority of reduction in consumer indebtedness is due to home and consumer loan defaults.

For a person who sometimes pays his entire credit balance and sometimes pays the minimum payment,which calculation method would be the least expensive?

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -One condition of a secured credit card is that the holder must [pay a higher rate of interest | deposit an amount equal to the credit line in a savings account].

Always paying cash is helpful in establishing a high level of creditworthiness.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -The first step to take if you are having credit difficulties would be to [talk to creditors | consult a credit counselor].

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -Most bank credit cards have interest rates that will [remain the same as long as you hold the card | be adjusted as interest rates in general rise and fall].

Understanding the Financial Planning Process

Using Financial Statements and Budgets

Preparing Your Taxes

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds

Planning for Retirement

Preserving Your Estate

Filters

Exam 6: Using Credit

Identity theft is a growing problem that could damage your credit rating.

Using more than 20 percent of one's take-home income to pay off consumer debt is one of the signs that one may be headed for serious credit problems.

The following information provides insight to a lender about the applicant's credit worthiness except:

Revolving credit lines are often accessed by writing checks.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -In the year after the Credit Card Act of 2009 was passed,there was a(n)[increase | decrease] in the use of debit cards relative to credit cards.

The required monthly payment on an open account will be the smaller of a minimum dollar amount or a specified percentage of the balance.

Never adding up all one's bills is one of the signs that one may be headed for serious credit problems.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -The majority of reduction in consumer indebtedness is due to [loan defaults | loan repayments]

A debt safety ratio of 5% would generally be a signal of financial trouble ahead.

Indebtedness relative to household income decreased due to all but

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -Most of your debts would be totally discharged under Chapter [7 | 13] of the federal bankruptcy law.

Families who have a source of income and who want to retain their assets above the protected amount would select Chapter 13 rather than Chapter 7 bankruptcy.

One can and should check his credit bureau file regularly.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -Using [credit | savings] to handle financial emergencies is the recommended choice.

The majority of reduction in consumer indebtedness is due to home and consumer loan defaults.

For a person who sometimes pays his entire credit balance and sometimes pays the minimum payment,which calculation method would be the least expensive?

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -One condition of a secured credit card is that the holder must [pay a higher rate of interest | deposit an amount equal to the credit line in a savings account].

Always paying cash is helpful in establishing a high level of creditworthiness.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -The first step to take if you are having credit difficulties would be to [talk to creditors | consult a credit counselor].

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -Most bank credit cards have interest rates that will [remain the same as long as you hold the card | be adjusted as interest rates in general rise and fall].

Understanding the Financial Planning Process

Using Financial Statements and Budgets

Preparing Your Taxes

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds

Planning for Retirement

Preserving Your Estate

Filters