Question 1

There is always a transaction fee attached to make a cash advance.

Accepted Answer

A) True 
 B)False  True

Question 2

If you are a woman,a creditor must

Accepted Answer

A)  require a spouse to cosign a loan. 
B)  ask about your birth control practices or family plans. 
C)  consider whether you have a telephone listing in your own home. 
D)  refuse individual credit in your own name. 
E)  consider income from your part-time employment. 
A)  require a spouse to cosign a loan. 
B)  ask about your birth control practices or family plans. 
C)  consider whether you have a telephone listing in your own home. 
D)  refuse individual credit in your own name. 
E)  consider income from your part-time employment. E

Question 3

It is legal for creditors to ask or assume anything about a woman's childbearing plans.

Accepted Answer

A) True 
 B)False  False

Question 4

There are very few valid reasons for using credit.

Accepted Answer

A) True 
 B)False

Question 5

Consumers have three alternatives in financing current purchases,including drawing up on savings,use their present earnings,or borrow against their expected future income

Accepted Answer

A) True 
 B)False

Question 6

If there is incorrect information in your credit file,

Accepted Answer

A)  you should sue the credit bureau. 
B)  you must sue the merchant who denied the credit. 
C)  the credit bureau must reinvestigate and modify or remove inaccurate data. 
D)  pray that the credit bureau goes bankrupt. 
E)  you cannot dispute the derogatory information. 
A)  you should sue the credit bureau. 
B)  you must sue the merchant who denied the credit. 
C)  the credit bureau must reinvestigate and modify or remove inaccurate data. 
D)  pray that the credit bureau goes bankrupt. 
E)  you cannot dispute the derogatory information.

Question 7

The 25-to 44-age group currently represents about 30 percent of the population but holds nearly ____________ percent of the debt outstanding.

Accepted Answer

A)  80 
B)  70 
C)  60 
D)  50 
E)  40 
A)  80 
B)  70 
C)  60 
D)  50 
E)  40

Question 8

Some studies show that as many as three out of four cosigners are asked to repay the loan.

Accepted Answer

A) True 
 B)False

Question 9

Most creditors rely heavily on borrowers' bank reports when considering loan applications.

Accepted Answer

A) True 
 B)False

Question 10

The larger the debt-to-equity ratio,the riskier the situation is for lenders and borrowers.

Accepted Answer

A) True 
 B)False

Question 11

An installment loan is a

Accepted Answer

A)  direct loan of money for personal purposes. 
B)  direct loan of money for home improvement. 
C)  loan that allows you to receive merchandise such as a refrigerator or furniture. 
D)  direct loan for vacation purposes. 
E)  synonym for a single lump-sum credit. 
A)  direct loan of money for personal purposes. 
B)  direct loan of money for home improvement. 
C)  loan that allows you to receive merchandise such as a refrigerator or furniture. 
D)  direct loan for vacation purposes. 
E)  synonym for a single lump-sum credit.

Question 12

Which of these is not a characteristic of Paypal?

Accepted Answer

A)  Facilitates online auction payments. 
B)  Offers password protected accounts. 
C)  Allows use of credit cards. 
D)  Transfers funds in U.S.dollars. 
E)  No annual fees. 
A)  Facilitates online auction payments. 
B)  Offers password protected accounts. 
C)  Allows use of credit cards. 
D)  Transfers funds in U.S.dollars. 
E)  No annual fees.

Question 13

The use of credit indicates personal and financial instability.

Accepted Answer

A) True 
 B)False

Question 14

College students are not a prime target for credit card issuers.

Accepted Answer

A) True 
 B)False

Question 15

Another name for credit when loans are made on a continuous basis and borrower is billed periodically for at least partial payment is known as:

Accepted Answer

A)  a line of credit. 
B)  convenience credit. 
C)  revolving credit. 
D)  installment credit. 
E)  bank card credit. 
A)  a line of credit. 
B)  convenience credit. 
C)  revolving credit. 
D)  installment credit. 
E)  bank card credit.

Question 16

Generally,most of the information in your credit file may be reported for only 3 years.

Accepted Answer

A) True 
 B)False

Question 17

In determining your credit capacity,you first provide for basic necessities,such as

Accepted Answer

A)  furniture. 
B)  home furnishings. 
C)  mortgage or rent. 
D)  automobile. 
E)  durable goods. 
A)  furniture. 
B)  home furnishings. 
C)  mortgage or rent. 
D)  automobile. 
E)  durable goods.

Question 18

A loan officer is examining your income and the amount of your existing debt payments to help in the decision to make a loan to you today.Which aspect of the Five Cs of lending is the loan officer most likely looking at?

Accepted Answer

A)  Character 
B)  Capacity 
C)  Capital 
D)  Collateral 
E)  Conditions 
A)  Character 
B)  Capacity 
C)  Capital 
D)  Collateral 
E)  Conditions

Question 19

Perhaps the greatest disadvantage of using credit is the temptation to overspend.

Accepted Answer

A) True 
 B)False

Question 20

The borrower's attitude toward his or her credit obligations is called

Accepted Answer

A)  capacity. 
B)  capital. 
C)  character. 
D)  collateral. 
E)  conditions. 
A)  capacity. 
B)  capital. 
C)  character. 
D)  collateral. 
E)  conditions.

There is always a transaction fee attached to make a cash advance.

If you are a woman,a creditor must

It is legal for creditors to ask or assume anything about a woman's childbearing plans.

There are very few valid reasons for using credit.

Consumers have three alternatives in financing current purchases,including drawing up on savings,use their present earnings,or borrow against their expected future income

If there is incorrect information in your credit file,

The 25-to 44-age group currently represents about 30 percent of the population but holds nearly ____________ percent of the debt outstanding.

Some studies show that as many as three out of four cosigners are asked to repay the loan.

Most creditors rely heavily on borrowers' bank reports when considering loan applications.

The larger the debt-to-equity ratio,the riskier the situation is for lenders and borrowers.

An installment loan is a

Which of these is not a characteristic of Paypal?

The use of credit indicates personal and financial instability.

College students are not a prime target for credit card issuers.

Another name for credit when loans are made on a continuous basis and borrower is billed periodically for at least partial payment is known as:

Generally,most of the information in your credit file may be reported for only 3 years.

In determining your credit capacity,you first provide for basic necessities,such as

A loan officer is examining your income and the amount of your existing debt payments to help in the decision to make a loan to you today.Which aspect of the Five Cs of lending is the loan officer most likely looking at?

Perhaps the greatest disadvantage of using credit is the temptation to overspend.

The borrower's attitude toward his or her credit obligations is called

Personal Financial Planning in Action

Money Management Skills

Taxes in Your Financial Plan

Financial Services: Savings Plans and Payment Accounts

Consumer Purchasing Strategies and Wise Buying of Motor Vehicles

Selecting and Financing Housing

Home and Automobile Insurance

Health and Disability Income Insurance

Financial Planning With Life Insurance

Investing Basics and Evaluating Bonds

Investing in Stocks

Investing in Mutual Funds

Starting Early: Retirement and Estate Planning

Daily Spending Diary

Filters

Exam 5: Consumer Credit: Advantages, Disadvantages, Sources, and Costs

There is always a transaction fee attached to make a cash advance.

If you are a woman,a creditor must

It is legal for creditors to ask or assume anything about a woman's childbearing plans.

There are very few valid reasons for using credit.

Consumers have three alternatives in financing current purchases,including drawing up on savings,use their present earnings,or borrow against their expected future income

If there is incorrect information in your credit file,

The 25-to 44-age group currently represents about 30 percent of the population but holds nearly ____________ percent of the debt outstanding.

Some studies show that as many as three out of four cosigners are asked to repay the loan.

Most creditors rely heavily on borrowers' bank reports when considering loan applications.

The larger the debt-to-equity ratio,the riskier the situation is for lenders and borrowers.

An installment loan is a

Which of these is not a characteristic of Paypal?

The use of credit indicates personal and financial instability.

College students are not a prime target for credit card issuers.

Another name for credit when loans are made on a continuous basis and borrower is billed periodically for at least partial payment is known as:

Generally,most of the information in your credit file may be reported for only 3 years.

In determining your credit capacity,you first provide for basic necessities,such as

A loan officer is examining your income and the amount of your existing debt payments to help in the decision to make a loan to you today.Which aspect of the Five Cs of lending is the loan officer most likely looking at?

Perhaps the greatest disadvantage of using credit is the temptation to overspend.

The borrower's attitude toward his or her credit obligations is called

Personal Financial Planning in Action

Money Management Skills

Taxes in Your Financial Plan

Financial Services: Savings Plans and Payment Accounts

Consumer Purchasing Strategies and Wise Buying of Motor Vehicles

Selecting and Financing Housing

Home and Automobile Insurance

Health and Disability Income Insurance

Financial Planning With Life Insurance

Investing Basics and Evaluating Bonds

Investing in Stocks

Investing in Mutual Funds

Starting Early: Retirement and Estate Planning

Daily Spending Diary

Filters