Question 1

Debit cards look like credit cards,but they work like checks.

Accepted Answer

A) True 
 B)False

Question 2

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-A person who pays her credit balance off every month should look for a credit card with [a low interest rate | no annual fee].

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 3

A debt safety ratio of 25% might be a signal of financial trouble ahead.

Accepted Answer

A) True 
 B)False

Question 4

Student credit cards typically require that one be enrolled in a 2- or 4-year college/university and

Accepted Answer

A)  a parent's signature. 
B)  own a vehicle. 
C)  hold a job. 
D)  have some form of income. 
E)  take at least nine hours. 
A)  a parent's signature. 
B)  own a vehicle. 
C)  hold a job. 
D)  have some form of income. 
E)  take at least nine hours.

Question 5

Personal insolvency can be legally satisfied by

Accepted Answer

A)  Chapter 13 bankruptcy. 
B)  relinquishing all credit cards. 
C)  Chapter 7 bankruptcy. 
D)  b and c above. 
E)  a and c above. 
A)  Chapter 13 bankruptcy. 
B)  relinquishing all credit cards. 
C)  Chapter 7 bankruptcy. 
D)  b and c above. 
E)  a and c above.

Question 6

Finance charges on two credit cards with the same stated APR

Accepted Answer

A)  will always be the same. 
B)  by federal law must be calculated the same way. 
C)  will be determined by the type of credit card used. 
D)  will be determined by the method used to calculate balances. 
E)  none of these. 
A)  will always be the same. 
B)  by federal law must be calculated the same way. 
C)  will be determined by the type of credit card used. 
D)  will be determined by the method used to calculate balances. 
E)  none of these.

Question 7

A Chapter 13 bankruptcy filing would result in the discharge of most of your debts.

Accepted Answer

A) True 
 B)False

Question 8

Most of the reduction in household indebtedness is due to

Accepted Answer

A)  fewer new loans 
B)  loan defaults 
C)  accelerated payment schedules 
D)  loan workout agreements 
E)  c and d 
A)  fewer new loans 
B)  loan defaults 
C)  accelerated payment schedules 
D)  loan workout agreements 
E)  c and d

Question 9

Advantages of balance transfers can include lower interest rates and the convenience of consolidation.

Accepted Answer

A) True 
 B)False

Question 10

If the information on your credit report is in dispute,you are entitled to

Accepted Answer

A)  correct it. 
B)  sue. 
C)  erase it. 
D)  supply your own explanation about the dispute. 
E)  withdraw from the credit bureau. 
A)  correct it. 
B)  sue. 
C)  erase it. 
D)  supply your own explanation about the dispute. 
E)  withdraw from the credit bureau.

Question 11

A monthly credit card statement need not include information about the

Accepted Answer

A)  size of the payment. 
B)  payment due date. 
C)  type of the goods purchased. 
D)  annual percentage rate. 
E)  finance charge if any. 
A)  size of the payment. 
B)  payment due date. 
C)  type of the goods purchased. 
D)  annual percentage rate. 
E)  finance charge if any.

Question 12

Credit reports on individual borrowers are issued by credit unions reporting agencies.

Accepted Answer

A) True 
 B)False

Question 13

Unsecured lines of credit are easy to use and often use some form of collateral as default protection.

Accepted Answer

A) True 
 B)False

Question 14

____ does not represent a line of credit.

Accepted Answer

A)  Retail credit card 
B)  Debit card 
C)  Overdraft protection 
D)  Home equity LOC 
E)  Unsecured personal credit 
A)  Retail credit card 
B)  Debit card 
C)  Overdraft protection 
D)  Home equity LOC 
E)  Unsecured personal credit

Question 15

Which of the following household appliances could help you protect yourself against identity theft?

Accepted Answer

A)  VCR 
B)  cell phone 
C)  shredder 
D)  home computer 
E)  telephone answering machine 
A)  VCR 
B)  cell phone 
C)  shredder 
D)  home computer 
E)  telephone answering machine

Question 16

The Wage Earner Planner requires debtors to give up most of their assets.

Accepted Answer

A) True 
 B)False

Question 17

Credit cards often have penalties for late payment and for exceeding credit limits.

Accepted Answer

A) True 
 B)False

Question 18

The most common method of computing finance charges on a credit card is the average daily balance method including new purchases.

Accepted Answer

A) True 
 B)False

Question 19

The market value of your house is $175,000 and you have a first mortgage balance of $100,000.If a lender requires a 80% loan-to-market value ratio,how large could your home equity loan be?

Accepted Answer

($175,000

Question 20

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select
-A proper use of open account credit would be to buy a [food | washing machine].

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.

Debit cards look like credit cards,but they work like checks.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -A person who pays her credit balance off every month should look for a credit card with [a low interest rate | no annual fee].

A debt safety ratio of 25% might be a signal of financial trouble ahead.

Student credit cards typically require that one be enrolled in a 2- or 4-year college/university and

Personal insolvency can be legally satisfied by

Finance charges on two credit cards with the same stated APR

A Chapter 13 bankruptcy filing would result in the discharge of most of your debts.

Most of the reduction in household indebtedness is due to

Advantages of balance transfers can include lower interest rates and the convenience of consolidation.

If the information on your credit report is in dispute,you are entitled to

A monthly credit card statement need not include information about the

Credit reports on individual borrowers are issued by credit unions reporting agencies.

Unsecured lines of credit are easy to use and often use some form of collateral as default protection.

____ does not represent a line of credit.

Which of the following household appliances could help you protect yourself against identity theft?

The Wage Earner Planner requires debtors to give up most of their assets.

Credit cards often have penalties for late payment and for exceeding credit limits.

The most common method of computing finance charges on a credit card is the average daily balance method including new purchases.

The market value of your house is $175,000 and you have a first mortgage balance of $100,000.If a lender requires a 80% loan-to-market value ratio,how large could your home equity loan be?

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -A proper use of open account credit would be to buy a [food | washing machine].

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

Debit cards look like credit cards,but they work like checks.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -A person who pays her credit balance off every month should look for a credit card with [a low interest rate | no annual fee].

A debt safety ratio of 25% might be a signal of financial trouble ahead.

Student credit cards typically require that one be enrolled in a 2- or 4-year college/university and

Personal insolvency can be legally satisfied by

Finance charges on two credit cards with the same stated APR

A Chapter 13 bankruptcy filing would result in the discharge of most of your debts.

Most of the reduction in household indebtedness is due to

Advantages of balance transfers can include lower interest rates and the convenience of consolidation.

If the information on your credit report is in dispute,you are entitled to

A monthly credit card statement need not include information about the

Credit reports on individual borrowers are issued by credit unions reporting agencies.

Unsecured lines of credit are easy to use and often use some form of collateral as default protection.

____ does not represent a line of credit.

Which of the following household appliances could help you protect yourself against identity theft?

The Wage Earner Planner requires debtors to give up most of their assets.

Credit cards often have penalties for late payment and for exceeding credit limits.

The most common method of computing finance charges on a credit card is the average daily balance method including new purchases.

The market value of your house is $175,000 and you have a first mortgage balance of $100,000.If a lender requires a 80% loan-to-market value ratio,how large could your home equity loan be?

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -A proper use of open account credit would be to buy a [food | washing machine].

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