Question 1

Obtaining information in order to steal your identity from documents discarded by your bank is an example of

Accepted Answer

A) shoulder surfing. 
B) dumpster diving. 
C) pretexting. 
D) skimming. 
A) shoulder surfing. 
B) dumpster diving. 
C) pretexting. 
D) skimming.

Question 2

Revolving open-end credit typically does not specify a maximum amount that can be borrowed.

Accepted Answer

A) True 
 B)False

Question 3

The impact of credit ________ saving and ________ spending.

Accepted Answer

A) increases; decreases 
B) decreases; increases 
C) decreases; decreases 
D) Credit has no relationship on saving and spending. 
A) increases; decreases 
B) decreases; increases 
C) decreases; decreases 
D) Credit has no relationship on saving and spending.

Question 4

If you find that you will not be able to make credit payments on time,the best course of action is to immediately notify the creditor.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following will not be included on your credit report?

Accepted Answer

A) Social Security number 
B) FICO score 
C) Unpaid accounts 
D) Companies that have recently accessed your report 
A) Social Security number 
B) FICO score 
C) Unpaid accounts 
D) Companies that have recently accessed your report

Question 6

With a credit rating of over 500,you should have no problem getting approval for credit purchases.

Accepted Answer

A) True 
 B)False

Question 7

Historical credit problems remain on a credit bureau's report for ________ years while a bankruptcy remains for ________ years.

Accepted Answer

A) ten; twenty 
B) seven; ten 
C) eight; fifteen 
D) five; ten 
A) ten; twenty 
B) seven; ten 
C) eight; fifteen 
D) five; ten

Question 8

Your credit report can be requested online and should be checked periodically for errors.

Accepted Answer

A) True 
 B)False

Question 9

If a person obtains your credit card number by standing close enough to you to either see your credit card or hear you speak the number during a telephone call,they are

Accepted Answer

A) shoulder surfing. 
B) dumpster diving. 
C) pretexting. 
D) skimming. 
A) shoulder surfing. 
B) dumpster diving. 
C) pretexting. 
D) skimming.

Question 10

In order to have credit in the future,you must have used it wisely in the past.

Accepted Answer

A) True 
 B)False

Question 11

The minimum credit score required by financial institutions

Accepted Answer

A) varies by institution. 
B) is 500. 
C) is 550. 
D) is 600. 
A) varies by institution. 
B) is 500. 
C) is 550. 
D) is 600.

Question 12

The average individual loss as a result of identity theft has in recent years been

Accepted Answer

A) decreasing. 
B) staying the same. 
C) increasing. 
D) No pattern is discernable. 
A) decreasing. 
B) staying the same. 
C) increasing. 
D) No pattern is discernable.

Question 13

Federal law requires creditors to explain the reasons for the denial of credit.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is not one of the three primary credit bureaus?

Accepted Answer

A) Equifax 
B) Experian 
C) TransUnion 
D) Fair Isaac Corporation 
A) Equifax 
B) Experian 
C) TransUnion 
D) Fair Isaac Corporation

Question 15

Excessive use of credit can impair your ability to save money.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following would not help improve your credit score?

Accepted Answer

A) Reducing unnecessary expenditures 
B) Destroying some credit cards 
C) Applying for more credit cards 
D) Notifying creditors of late payments 
A) Reducing unnecessary expenditures 
B) Destroying some credit cards 
C) Applying for more credit cards 
D) Notifying creditors of late payments

Question 17

All of the following are correct statements about credit except

Accepted Answer

A) creditor provides funds. 
B) credit needs to be paid back in the future. 
C) repayment will include interest. 
D) the interest is the total amount to be repaid. 
A) creditor provides funds. 
B) credit needs to be paid back in the future. 
C) repayment will include interest. 
D) the interest is the total amount to be repaid.

Question 18

Of the following statements,which is not a disadvantage of using credit?

Accepted Answer

A) It can be costly to use 
B) It can be difficult to repay if overused 
C) It is more difficult to obtain than repay 
D) It may tempt you to make impulse purchases 
A) It can be costly to use 
B) It can be difficult to repay if overused 
C) It is more difficult to obtain than repay 
D) It may tempt you to make impulse purchases

Question 19

Creditors prefer a ________ level of cash inflows and ________ level of cash outflows.

Accepted Answer

A) low; low 
B) high; low 
C) high; high 
D) medium; low 
A) low; low 
B) high; low 
C) high; high 
D) medium; low

Question 20

Unless your identity is stolen by someone out of state,you should only report the crime to local law enforcement.

Accepted Answer

A) True 
 B)False

Exam 7: Assessing and Securing Your Credit

Obtaining information in order to steal your identity from documents discarded by your bank is an example of

Revolving open-end credit typically does not specify a maximum amount that can be borrowed.

The impact of credit ________ saving and ________ spending.

If you find that you will not be able to make credit payments on time,the best course of action is to immediately notify the creditor.

Which of the following will not be included on your credit report?

With a credit rating of over 500,you should have no problem getting approval for credit purchases.

Historical credit problems remain on a credit bureau's report for ________ years while a bankruptcy remains for ________ years.

Your credit report can be requested online and should be checked periodically for errors.

If a person obtains your credit card number by standing close enough to you to either see your credit card or hear you speak the number during a telephone call,they are

In order to have credit in the future,you must have used it wisely in the past.

The minimum credit score required by financial institutions

The average individual loss as a result of identity theft has in recent years been

Federal law requires creditors to explain the reasons for the denial of credit.

Which of the following is not one of the three primary credit bureaus?

Excessive use of credit can impair your ability to save money.

Which of the following would not help improve your credit score?

All of the following are correct statements about credit except

Of the following statements,which is not a disadvantage of using credit?

Creditors prefer a ________ level of cash inflows and ________ level of cash outflows.

Unless your identity is stolen by someone out of state,you should only report the crime to local law enforcement.

Overview of a Financial Plan

Planning With Personal Financial Statements

Applying Time Value Concepts

Using Tax Concepts for Planning

Banking and Interest Rates

Managing Your Money

Managing Your Credit

Personal Loans

Purchasing and Financing a Home

Auto and Homeowners Insurance

Health and Disability Insurance

Life Insurance

Investing Fundamentals

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Asset Allocation

Retirement Planning

Estate Planning

Integrating the Components of a Financial Plan

Filters

The impact of credit saving and spending.

Historical credit problems remain on a credit bureau's report for years while a bankruptcy remains for years.

Creditors prefer a level of cash inflows and level of cash outflows.