Question 1

Collateral refers to the borrower's assets or net worth.

Accepted Answer

A) True 
 B)False

Question 2

A home equity loan is usually set up as a revolving line of credit,typically with a variable interest rate.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is considered to be a consumer loan?

Accepted Answer

A)  Debit card 
B)  Credit loan 
C)  Personal line of credit 
D)  Overdraft protection 
E)  Mortgage loan 
A)  Debit card 
B)  Credit loan 
C)  Personal line of credit 
D)  Overdraft protection 
E)  Mortgage loan

Question 4

If you think your bill is wrong,you must notify your creditor in writing within 15 days after the bill was mailed.

Accepted Answer

A) True 
 B)False

Question 5

The borrower's financial ability to meet credit obligations is called

Accepted Answer

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

Question 6

A personal line of credit is a

Accepted Answer

A)  credit arrangement that has no extra costs. 
B)  prearranged loan for a specified amount that you can use by writing a special check. 
C)  credit arrangement that has no specific repayment plan. 
D)  synonym for installment cash credit. 
E)  synonym for single lump-sum credit. 
A)  credit arrangement that has no extra costs. 
B)  prearranged loan for a specified amount that you can use by writing a special check. 
C)  credit arrangement that has no specific repayment plan. 
D)  synonym for installment cash credit. 
E)  synonym for single lump-sum credit.

Question 7

If you have incorrect information in your credit file,

Accepted Answer

A)  you can't really do much about it. 
B)  you have no legal remedies. 
C)  credit bureaus are not required to change it. 
D)  there are legal remedies available to you. 
E)  don't worry much because you will still get the credit. 
A)  you can't really do much about it. 
B)  you have no legal remedies. 
C)  credit bureaus are not required to change it. 
D)  there are legal remedies available to you. 
E)  don't worry much because you will still get the credit.

Question 8

Your friends and neighbors can get credit information about you.

Accepted Answer

A) True 
 B)False

Question 9

In a closed-end credit,loans are made on a continuous basis and you make at least partial payment.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is not an example of revolving credit?

Accepted Answer

A)  a line of credit. 
B)  a credit card loan. 
C)  overdraft protection. 
D)  charge cards. 
E)  automobile loans. 
A)  a line of credit. 
B)  a credit card loan. 
C)  overdraft protection. 
D)  charge cards. 
E)  automobile loans.

Question 11

The maximum amount of credit you are allowed by a creditor is called a(n)

Accepted Answer

A)  revolving credit. 
B)  installment cash credit. 
C)  convenience credit. 
D)  line of credit. 
E)  single lump-sum credit. 
A)  revolving credit. 
B)  installment cash credit. 
C)  convenience credit. 
D)  line of credit. 
E)  single lump-sum credit.

Question 12

When did installment credit explode on the North American scene?

Accepted Answer

A)  Just after World War II 
B)  with the advent of television in the late 1940s 
C)  with the advent of the automobile in the early 1900s 
D)  during the recession of the 1950s 
E)  during the inflation of the 1970s 
A)  Just after World War II 
B)  with the advent of television in the late 1940s 
C)  with the advent of the automobile in the early 1900s 
D)  during the recession of the 1950s 
E)  during the inflation of the 1970s

Question 13

A car loan is an example of a consumer loan.

Accepted Answer

A) True 
 B)False

Question 14

A personal line of credit is a pre-arranged loan for a specified amount that you can use by writing a special check.

Accepted Answer

A) True 
 B)False

Question 15

Kathy purchased a $2,000 digital TV from Young's Appliances.She will make 12 equal payments over the next year to pay for it.She is using:

Accepted Answer

A)  an installment loan 
B)  open-end credit 
C)  revolving check credit 
D)  a line of credit 
E)  none of the above 
A)  an installment loan 
B)  open-end credit 
C)  revolving check credit 
D)  a line of credit 
E)  none of the above

Question 16

What are the two basic types of credit? Give examples of both.

Accepted Answer

Consumer loans and revolving credit.Cons

Question 17

It is safer to use credit,since charge accounts and credit cards let you shop and travel without carrying large amounts of cash.

Accepted Answer

A) True 
 B)False

Question 18

A credit file is a report which includes the individual's present employer and position,former employer(s),public records and a list of cheques returned for insufficient funds.

Accepted Answer

A) True 
 B)False

Question 19

Consumer credit refers to the use of credit for personal needs (except a home mortgage)by individuals.

Accepted Answer

A) True 
 B)False

Question 20

You should sign your new credit cards as soon as they arrive.

Accepted Answer

A) True 
 B)False

Collateral refers to the borrower's assets or net worth.

A home equity loan is usually set up as a revolving line of credit,typically with a variable interest rate.

Which of the following is considered to be a consumer loan?

If you think your bill is wrong,you must notify your creditor in writing within 15 days after the bill was mailed.

The borrower's financial ability to meet credit obligations is called

A personal line of credit is a

If you have incorrect information in your credit file,

Your friends and neighbors can get credit information about you.

In a closed-end credit,loans are made on a continuous basis and you make at least partial payment.

Which of the following is not an example of revolving credit?

The maximum amount of credit you are allowed by a creditor is called a(n)

When did installment credit explode on the North American scene?

A car loan is an example of a consumer loan.

A personal line of credit is a pre-arranged loan for a specified amount that you can use by writing a special check.

Kathy purchased a $2,000 digital TV from Young's Appliances.She will make 12 equal payments over the next year to pay for it.She is using:

What are the two basic types of credit? Give examples of both.

It is safer to use credit,since charge accounts and credit cards let you shop and travel without carrying large amounts of cash.

A credit file is a report which includes the individual's present employer and position,former employer(s),public records and a list of cheques returned for insufficient funds.

Consumer credit refers to the use of credit for personal needs (except a home mortgage)by individuals.

You should sign your new credit cards as soon as they arrive.

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

Collateral refers to the borrower's assets or net worth.

A home equity loan is usually set up as a revolving line of credit,typically with a variable interest rate.

Which of the following is considered to be a consumer loan?

If you think your bill is wrong,you must notify your creditor in writing within 15 days after the bill was mailed.

The borrower's financial ability to meet credit obligations is called

A personal line of credit is a

If you have incorrect information in your credit file,

Your friends and neighbors can get credit information about you.

In a closed-end credit,loans are made on a continuous basis and you make at least partial payment.

Which of the following is not an example of revolving credit?

The maximum amount of credit you are allowed by a creditor is called a(n)

When did installment credit explode on the North American scene?

A car loan is an example of a consumer loan.

A personal line of credit is a pre-arranged loan for a specified amount that you can use by writing a special check.

Kathy purchased a $2,000 digital TV from Young's Appliances.She will make 12 equal payments over the next year to pay for it.She is using:

What are the two basic types of credit? Give examples of both.

It is safer to use credit,since charge accounts and credit cards let you shop and travel without carrying large amounts of cash.

A credit file is a report which includes the individual's present employer and position,former employer(s),public records and a list of cheques returned for insufficient funds.

Consumer credit refers to the use of credit for personal needs (except a home mortgage)by individuals.

You should sign your new credit cards as soon as they arrive.

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