Question 1

A ____ is an agency that provides credit information about individual borrowers to lenders.

Accepted Answer

A)  credit bureau 
B)  consumer bureau 
C)  credit statement 
D)  bank 
E)  credit scoring house 
A)  credit bureau 
B)  consumer bureau 
C)  credit statement 
D)  bank 
E)  credit scoring house

Question 2

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 defaults.

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

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-A credit scoring system might assign points according to your annual income and [gender | age].

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 4

A credit applicant will be granted credit only after establishing a complete file at the local credit bureau.

Accepted Answer

A) True 
 B)False

Question 5

Paying only the minimum payment each time on a credit card usually enables one to pay off the balance fairly quickly.

Accepted Answer

A) True 
 B)False

Question 6

____ would be an indication of overspending.

Accepted Answer

A)  Your checks are bouncing. 
B)  Collection agencies are calling you frequently . 
C)  All your credit cards are charged up to their limits. 
D)  You have no cash reserves and must borrow for incidentals. 
E)  All of the above. 
A)  Your checks are bouncing. 
B)  Collection agencies are calling you frequently . 
C)  All your credit cards are charged up to their limits. 
D)  You have no cash reserves and must borrow for incidentals. 
E)  All of the above.

Question 7

The most common forms of open account credit are travel and entertainment cards.

Accepted Answer

A) True 
 B)False

Question 8

Credit bureau files often include information such as political and religious affiliations in addition to financial information.

Accepted Answer

A) True 
 B)False

Question 9

Bank credit card purchases always begin accruing interest charges immediately.

Accepted Answer

A) True 
 B)False

Question 10

If your monthly before-tax income is $2,000 and your monthly take-home pay is $1,500,your maximum monthly consumer credit payments should not exceed

Accepted Answer

A)  $600. 
B)  $450. 
C)  $400. 
D)  $300. 
E)  $200. 
A)  $600. 
B)  $450. 
C)  $400. 
D)  $300. 
E)  $200.

Question 11

The grace period on a credit card starts on the billing date and ends on the date the lender should receive the payment.

Accepted Answer

A) True 
 B)False

Question 12

It is not a good idea to use credit for

Accepted Answer

A)  convenience. 
B)  durable expenses. 
C)  consumable items. 
D)  investments. 
E)  improving one's credit rating. 
A)  convenience. 
B)  durable expenses. 
C)  consumable items. 
D)  investments. 
E)  improving one's credit rating.

Question 13

The most common forms of open account credit are bank credit cards and retail charge cards.

Accepted Answer

A) True 
 B)False

Question 14

All of the following are key items lenders look at in granting credit except

Accepted Answer

A)  income. 
B)  outstanding debt. 
C)  stability in employment and housing. 
D)  religious affiliations. 
E)  credit history. 
A)  income. 
B)  outstanding debt. 
C)  stability in employment and housing. 
D)  religious affiliations. 
E)  credit history.

Question 15

Before filing for bankruptcy,debtors should consider seeking the help of a credit counselor.

Accepted Answer

A) True 
 B)False

Question 16

Generally,finance charges are computed only on the unpaid balance from previous months' purchases.

Accepted Answer

A) True 
 B)False

Question 17

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select
-Nancy's take-home income is $3,000 per month,and she currently has $700 monthly consumer debt.According to the general rules of thumb,Nancy [is | is not] in a position to take on additional consumer debt.

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

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-A home equity lines of credit is one of the [most | least] expensive forms of consumer credit.

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 19

All of the following are useful ways to build a strong credit rating except

Accepted Answer

A)  Open checking and savings accounts. 
B)  Open and use a charge account. 
C)  Apply for a long-term loan and occasionally be late with a payment. 
D)  Make payments on time. 
E)  Talk with the lender if you foresee difficulty in making a payment. 
A)  Open checking and savings accounts. 
B)  Open and use a charge account. 
C)  Apply for a long-term loan and occasionally be late with a payment. 
D)  Make payments on time. 
E)  Talk with the lender if you foresee difficulty in making a payment.

Question 20

Interest rates on ____ are typically lower than on any other form of consumer credit.

Accepted Answer

A)  travel and entertainment cards 
B)  debit cards 
C)  credit cards 
D)  home equity loans 
E)  unsecured personal credit 
A)  travel and entertainment cards 
B)  debit cards 
C)  credit cards 
D)  home equity loans 
E)  unsecured personal credit

A ____ is an agency that provides credit information about individual borrowers to lenders.

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 defaults.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -A credit scoring system might assign points according to your annual income and [gender | age].

A credit applicant will be granted credit only after establishing a complete file at the local credit bureau.

Paying only the minimum payment each time on a credit card usually enables one to pay off the balance fairly quickly.

____ would be an indication of overspending.

The most common forms of open account credit are travel and entertainment cards.

Credit bureau files often include information such as political and religious affiliations in addition to financial information.

Bank credit card purchases always begin accruing interest charges immediately.

If your monthly before-tax income is $2,000 and your monthly take-home pay is $1,500,your maximum monthly consumer credit payments should not exceed

The grace period on a credit card starts on the billing date and ends on the date the lender should receive the payment.

It is not a good idea to use credit for

The most common forms of open account credit are bank credit cards and retail charge cards.

All of the following are key items lenders look at in granting credit except

Before filing for bankruptcy,debtors should consider seeking the help of a credit counselor.

Generally,finance charges are computed only on the unpaid balance from previous months' purchases.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -A home equity lines of credit is one of the [most | least] expensive forms of consumer credit.

All of the following are useful ways to build a strong credit rating except

Interest rates on ____ are typically lower than on any other form of consumer credit.

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

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Exam 6: Using Credit

A ____ is an agency that provides credit information about individual borrowers to lenders.

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 defaults.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -A credit scoring system might assign points according to your annual income and [gender | age].

A credit applicant will be granted credit only after establishing a complete file at the local credit bureau.

Paying only the minimum payment each time on a credit card usually enables one to pay off the balance fairly quickly.

____ would be an indication of overspending.

The most common forms of open account credit are travel and entertainment cards.

Credit bureau files often include information such as political and religious affiliations in addition to financial information.

Bank credit card purchases always begin accruing interest charges immediately.

If your monthly before-tax income is $2,000 and your monthly take-home pay is $1,500,your maximum monthly consumer credit payments should not exceed

The grace period on a credit card starts on the billing date and ends on the date the lender should receive the payment.

It is not a good idea to use credit for

The most common forms of open account credit are bank credit cards and retail charge cards.

All of the following are key items lenders look at in granting credit except

Before filing for bankruptcy,debtors should consider seeking the help of a credit counselor.

Generally,finance charges are computed only on the unpaid balance from previous months' purchases.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -A home equity lines of credit is one of the [most | least] expensive forms of consumer credit.

All of the following are useful ways to build a strong credit rating except

Interest rates on ____ are typically lower than on any other form of consumer credit.

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