Question 1

Your credit limit is determined by a number of factors,such as financial position,earning power,etc.

Accepted Answer

A) True 
 B)False

Question 2

Most organizations that issue credit cards have basically the same qualifications for card applicants.

Accepted Answer

A) True 
 B)False

Question 3

Prepaid cards are a form of credit that is very convenient to use and do not charge a service fee.

Accepted Answer

A) True 
 B)False

Question 4

The key to credit worthiness is to keep your debt safety ratio as high as possible.

Accepted Answer

A) True 
 B)False

Question 5

When comparing credit cards,a person who pays his total outstanding balance off monthly would want a card with

Accepted Answer

A)  a low required minimum payment percentage. 
B)  a low interest rate. 
C)  an adequate grace period. 
D)  no annual fee 
E)  c and d 
A)  a low required minimum payment percentage. 
B)  a low interest rate. 
C)  an adequate grace period. 
D)  no annual fee 
E)  c and d

Question 6

With open account credit,one can often avoid interest charges if

Accepted Answer

A)  the account balance is paid in full every month. 
B)  at least half the account balance is paid every month. 
C)  the minimum payment is made every month. 
D)  the account is a revolving credit account. 
E)  the balance is below the credit limit. 
A)  the account balance is paid in full every month. 
B)  at least half the account balance is paid every month. 
C)  the minimum payment is made every month. 
D)  the account is a revolving credit account. 
E)  the balance is below the credit limit.

Question 7

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 late payments.

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 8

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select
-A major difference between bank credit cards and travel and entertainment credit cards is [the travel and entertainment | the bank] cards expect balances to be paid in full each month.

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

Generally speaking,the interest rates on credit cards are lower than any other form of credit.

Accepted Answer

A) True 
 B)False

Question 10

Student credit cards are structured much differently than regular credit cards.

Accepted Answer

A) True 
 B)False

Question 11

One can be overusing credit even though he can afford to make minimum monthly payments on time.

Accepted Answer

A) True 
 B)False

Question 12

It is not a good idea to use credit to

Accepted Answer

A)  buy a home. 
B)  live beyond one's means. 
C)  spread payments within a budget. 
D)  purchase expensive items. 
E)  replace a check for small items. 
A)  buy a home. 
B)  live beyond one's means. 
C)  spread payments within a budget. 
D)  purchase expensive items. 
E)  replace a check for small items.

Question 13

Credit should not consistently be used for non-durable goods.

Accepted Answer

A) True 
 B)False

Question 14

Having arranged and fully repaid a small loan should help improve creditworthiness.

Accepted Answer

A) True 
 B)False

Question 15

Bank credit cards represent the most common kind of open account credit.

Accepted Answer

A) True 
 B)False

Question 16

Ted and Karen have a combined take-home income of $4,500.Their total monthly payments on consumer debt are $875.What is their debt safety ratio? Are they exhibiting any sign of approaching credit problems?

Accepted Answer

$875/$4,500 = 19.4% They are approaching

Question 17

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-The decision whether or not to grant you credit will be made by [individual creditors | the credit bureau].

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

Home equity loans are one of the least expensive forms of consumer credit.

Accepted Answer

A) True 
 B)False

Question 19

Unsecured lines of credit provide tax advantages if you itemize deductions.

Accepted Answer

A) True 
 B)False

Question 20

Prepaid cards are used to pay for things,with the purchase amount electronically deducted from the card.

Accepted Answer

A) True 
 B)False

Your credit limit is determined by a number of factors,such as financial position,earning power,etc.

Most organizations that issue credit cards have basically the same qualifications for card applicants.

Prepaid cards are a form of credit that is very convenient to use and do not charge a service fee.

The key to credit worthiness is to keep your debt safety ratio as high as possible.

When comparing credit cards,a person who pays his total outstanding balance off monthly would want a card with

With open account credit,one can often avoid interest charges if

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 late payments.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -A major difference between bank credit cards and travel and entertainment credit cards is [the travel and entertainment | the bank] cards expect balances to be paid in full each month.

Generally speaking,the interest rates on credit cards are lower than any other form of credit.

Student credit cards are structured much differently than regular credit cards.

One can be overusing credit even though he can afford to make minimum monthly payments on time.

It is not a good idea to use credit to

Credit should not consistently be used for non-durable goods.

Having arranged and fully repaid a small loan should help improve creditworthiness.

Bank credit cards represent the most common kind of open account credit.

Ted and Karen have a combined take-home income of $4,500.Their total monthly payments on consumer debt are $875.What is their debt safety ratio? Are they exhibiting any sign of approaching credit problems?

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -The decision whether or not to grant you credit will be made by [individual creditors | the credit bureau].

Home equity loans are one of the least expensive forms of consumer credit.

Unsecured lines of credit provide tax advantages if you itemize deductions.

Prepaid cards are used to pay for things,with the purchase amount electronically deducted from the card.

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

Your credit limit is determined by a number of factors,such as financial position,earning power,etc.

Most organizations that issue credit cards have basically the same qualifications for card applicants.

Prepaid cards are a form of credit that is very convenient to use and do not charge a service fee.

The key to credit worthiness is to keep your debt safety ratio as high as possible.

When comparing credit cards,a person who pays his total outstanding balance off monthly would want a card with

With open account credit,one can often avoid interest charges if

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 late payments.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -A major difference between bank credit cards and travel and entertainment credit cards is [the travel and entertainment | the bank] cards expect balances to be paid in full each month.

Generally speaking,the interest rates on credit cards are lower than any other form of credit.

Student credit cards are structured much differently than regular credit cards.

One can be overusing credit even though he can afford to make minimum monthly payments on time.

It is not a good idea to use credit to

Credit should not consistently be used for non-durable goods.

Having arranged and fully repaid a small loan should help improve creditworthiness.

Bank credit cards represent the most common kind of open account credit.

Ted and Karen have a combined take-home income of $4,500.Their total monthly payments on consumer debt are $875.What is their debt safety ratio? Are they exhibiting any sign of approaching credit problems?

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -The decision whether or not to grant you credit will be made by [individual creditors | the credit bureau].

Home equity loans are one of the least expensive forms of consumer credit.

Unsecured lines of credit provide tax advantages if you itemize deductions.

Prepaid cards are used to pay for things,with the purchase amount electronically deducted from the card.

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