Question 1

Bank credit cards often offer features such as buyer protection plans for a fee to all customers.

Accepted Answer

A) True 
 B)False

Question 2

Ann Marie accumulated a large balance on her credit card while in college.She is trying to get it paid off as quickly as possible and wants to roll the balance onto a new credit card.She now uses a credit card only for emergencies.What should Ann Marie look for in a credit card given the large balance and the way she plans to use the card?

Accepted Answer

A)  low annual fee 
B)  low APR 
C)  long grace period 
D)  average daily balance method excluding purchases 
E)  two-cycle average daily balance method 
A)  low annual fee 
B)  low APR 
C)  long grace period 
D)  average daily balance method excluding purchases 
E)  two-cycle average daily balance method

Question 3

Balance transfers can be expensive,including fees and eventually high interest rates.

Accepted Answer

A) True 
 B)False

Question 4

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-[The Wage Earner Plan | Straight Bankruptcy] involves some type of debt restructuring.

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 5

Credit report is routinely used to predict credit worthiness.

Accepted Answer

A) True 
 B)False

Question 6

One can lose his home if he does not repay his home equity line of credit.

Accepted Answer

A) True 
 B)False

Question 7

For a fee,credit bureaus can provide credit scores for prospective borrowers.

Accepted Answer

A) True 
 B)False

Question 8

Credit bureaus provide information about prospective borrowers.

Accepted Answer

A) True 
 B)False

Question 9

The proceeds of a home equity loan can be used for just about any purpose,and the interest paid is usually tax deductible.

Accepted Answer

A) True 
 B)False

Question 10

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select
-The first step to take in establishing a credit history is to [get a credit card | open checking and savings accounts].

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 11

Which of the following are true regarding credit scoring systems?

Accepted Answer

A)  Lower scores are better than higher scores. 
B)  Scoring systems are based on statistical studies. 
C)  Credit unions calculate and sell credit scores to lenders. 
D)  Females receive higher score than males. 
E)  All of the above. 
A)  Lower scores are better than higher scores. 
B)  Scoring systems are based on statistical studies. 
C)  Credit unions calculate and sell credit scores to lenders. 
D)  Females receive higher score than males. 
E)  All of the above.

Question 12

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select
-Student credit cards usually [do | do not] require parental or guardian guarantees.

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 13

A revolving charge account requires the customers to pay off the debt 10 to 20 days after the billing date with no interest expense.

Accepted Answer

A) True 
 B)False

Question 14

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select
-Rebate cards are most useful for consumers who charge a lot and [maintain | do not maintain] large balances of their 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 15

Individuals with better credit ratings usually can secure higher credit limits.

Accepted Answer

A) True 
 B)False

Question 16

The majority of persons filing bankruptcy file Chapter 7 bankruptcy.

Accepted Answer

A) True 
 B)False

Question 17

If you initiated the telephone call,it is okay to give your credit card account number when ordering/purchasing from major catalog houses,airlines,hotels,and so on.

Accepted Answer

A) True 
 B)False

Question 18

Debit cards are a form of credit that is very convenient to use.

Accepted Answer

A) True 
 B)False

Question 19

A problem with home equity loans is the

Accepted Answer

A)  high rate of interest on these loans. 
B)  difficulty in qualifying for these loans. 
C)  short-term nature of these loans. 
D)  temptation to spread payments over a long term. 
E)  tax disadvantages of these loans. 
A)  high rate of interest on these loans. 
B)  difficulty in qualifying for these loans. 
C)  short-term nature of these loans. 
D)  temptation to spread payments over a long term. 
E)  tax disadvantages of these loans.

Question 20

Nearly all credit cards have annual fees.

Accepted Answer

A) True 
 B)False

Bank credit cards often offer features such as buyer protection plans for a fee to all customers.

Balance transfers can be expensive,including fees and eventually high interest rates.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -[The Wage Earner Plan | Straight Bankruptcy] involves some type of debt restructuring.

Credit report is routinely used to predict credit worthiness.

One can lose his home if he does not repay his home equity line of credit.

For a fee,credit bureaus can provide credit scores for prospective borrowers.

Credit bureaus provide information about prospective borrowers.

The proceeds of a home equity loan can be used for just about any purpose,and the interest paid is usually tax deductible.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -The first step to take in establishing a credit history is to [get a credit card | open checking and savings accounts].

Which of the following are true regarding credit scoring systems?

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -Student credit cards usually [do | do not] require parental or guardian guarantees.

A revolving charge account requires the customers to pay off the debt 10 to 20 days after the billing date with no interest expense.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -Rebate cards are most useful for consumers who charge a lot and [maintain | do not maintain] large balances of their cards.

Individuals with better credit ratings usually can secure higher credit limits.

The majority of persons filing bankruptcy file Chapter 7 bankruptcy.

If you initiated the telephone call,it is okay to give your credit card account number when ordering/purchasing from major catalog houses,airlines,hotels,and so on.

Debit cards are a form of credit that is very convenient to use.

A problem with home equity loans is the

Nearly all credit cards have annual fees.

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

Bank credit cards often offer features such as buyer protection plans for a fee to all customers.

Balance transfers can be expensive,including fees and eventually high interest rates.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -[The Wage Earner Plan | Straight Bankruptcy] involves some type of debt restructuring.

Credit report is routinely used to predict credit worthiness.

One can lose his home if he does not repay his home equity line of credit.

For a fee,credit bureaus can provide credit scores for prospective borrowers.

Credit bureaus provide information about prospective borrowers.

The proceeds of a home equity loan can be used for just about any purpose,and the interest paid is usually tax deductible.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -The first step to take in establishing a credit history is to [get a credit card | open checking and savings accounts].

Which of the following are true regarding credit scoring systems?

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -Student credit cards usually [do | do not] require parental or guardian guarantees.

A revolving charge account requires the customers to pay off the debt 10 to 20 days after the billing date with no interest expense.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -Rebate cards are most useful for consumers who charge a lot and [maintain | do not maintain] large balances of their cards.

Individuals with better credit ratings usually can secure higher credit limits.

The majority of persons filing bankruptcy file Chapter 7 bankruptcy.

If you initiated the telephone call,it is okay to give your credit card account number when ordering/purchasing from major catalog houses,airlines,hotels,and so on.

Debit cards are a form of credit that is very convenient to use.

A problem with home equity loans is the

Nearly all credit cards have annual fees.

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