Question 1

Which of the following is generally not part of the process of opening a credit account?

Accepted Answer

A)  ​Filling out a credit application 
B)  ​Appraisal of assets 
C)  ​Having your credit history investigated 
D)  ​Credit scoring of your application 
A)  ​Filling out a credit application 
B)  ​Appraisal of assets 
C)  ​Having your credit history investigated 
D)  ​Credit scoring of your application B

Question 2

Your debt limit is the overall maximum you believe you should owe based on your ability to meet the repayment obligations.

Accepted Answer

A) True 
 B)False  True

Question 3

You may still owe money after repossession if there is a

Accepted Answer

A)  ​deficiency balance. 
B)  ​contingency clause in your contract. 
C)  ​foreclosure agreement. 
D)  ​Chapter 7 bankruptcy. 
A)  ​deficiency balance. 
B)  ​contingency clause in your contract. 
C)  ​foreclosure agreement. 
D)  ​Chapter 7 bankruptcy. A

Question 4

Chapter 13 of the Bankruptcy Act provides for an immediate liquidation of assets.

Accepted Answer

A) True 
 B)False

Question 5

Creditors can legally require information about ____ on a credit application.

Accepted Answer

A)  ​childbearing plans 
B)  ​marital status 
C)  ​age 
D)  ​all your sources of income 
A)  ​childbearing plans 
B)  ​marital status 
C)  ​age 
D)  ​all your sources of income

Question 6

It is possible to still owe money after an item of collateral is repossessed for nonpayment on the debt.

Accepted Answer

A) True 
 B)False

Question 7

Credit use increases future buying power.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following items is least appropriate to purchase with a credit card unless you will pay the bill in full when the statement is received?

Accepted Answer

A)  ​A new suit 
B)  ​Groceries 
C)  ​Microwave oven 
D)  ​Smart phone 
A)  ​A new suit 
B)  ​Groceries 
C)  ​Microwave oven 
D)  ​Smart phone

Question 9

When comparing loans from two or more sources you want to focus on the lowest monthly payment.

Accepted Answer

A) True 
 B)False

Question 10

It is a smart move to consolidate all your student loans into one loan once you graduate from college.

Accepted Answer

A) True 
 B)False

Question 11

Maxine used her bank credit card to make a three-day reservation at a fancy hotel.When she tried to charge another purchase to the same credit card,Maxine was surprised to learn that her credit limit had been reached.What probably caused this?

Accepted Answer

A)  ​Credit card blocking 
B)  Bad checks charged against the Visa card​ 
C)  Chargeback of transactions​ 
D)  ​Tiered pricing 
A)  ​Credit card blocking 
B)  Bad checks charged against the Visa card​ 
C)  Chargeback of transactions​ 
D)  ​Tiered pricing

Question 12

People slip up in building and maintaining good credit when they

Accepted Answer

A)  ​pay more than 14 percent of disposable income toward non-mortgage debt payments. 
B)  ​save over long periods of time. 
C)  ​make on-time payments on credit cards. 
D)  ​regularly check the accuracy of credit bureau files. 
A)  ​pay more than 14 percent of disposable income toward non-mortgage debt payments. 
B)  ​save over long periods of time. 
C)  ​make on-time payments on credit cards. 
D)  ​regularly check the accuracy of credit bureau files.

Question 13

Chapter 7 of the Bankruptcy Act is permitted when it would be highly unlikely that substantial repayment could ever be made.

Accepted Answer

A) True 
 B)False

Question 14

Closing credit card accounts will increase your credit score.

Accepted Answer

A) True 
 B)False

Question 15

Stockbrokers loan money to clients who have ____ accounts.

Accepted Answer

A)  ​bank 
B)  ​collateral 
C)  ​margin 
D)  ​discretionary 
A)  ​bank 
B)  ​collateral 
C)  ​margin 
D)  ​discretionary

Question 16

Identity theft is the most commonly perpetrated form of consumer fraud in the U.S.

Accepted Answer

A) True 
 B)False

Question 17

Policyholders who have cash-value life insurance policies can obtain loans based on the cash values built up in their policies.

Accepted Answer

A) True 
 B)False

Question 18

Consumer credit can take the form of an installment loan that is repaid in ____ payments over a ____ period of time.

Accepted Answer

A)  ​variable;variable 
B)  ​equal;set 
C)  ​increasing;set 
D)  ​decreasing;variable 
A)  ​variable;variable 
B)  ​equal;set 
C)  ​increasing;set 
D)  ​decreasing;variable

Question 19

The most well-known of the many different types of credit scores used by lenders today is the

Accepted Answer

A)  ​FICO score. 
B)  ​Vantage score. 
C)  ​Experian score. 
D)  ​TransUnion score. 
A)  ​FICO score. 
B)  ​Vantage score. 
C)  ​Experian score. 
D)  ​TransUnion score.

Question 20

Credit counseling agencies can provide individuals with credit counseling as well as assistance with financial problems.

Accepted Answer

A) True 
 B)False

Which of the following is generally not part of the process of opening a credit account?

Your debt limit is the overall maximum you believe you should owe based on your ability to meet the repayment obligations.

You may still owe money after repossession if there is a

Chapter 13 of the Bankruptcy Act provides for an immediate liquidation of assets.

Creditors can legally require information about ____ on a credit application.

It is possible to still owe money after an item of collateral is repossessed for nonpayment on the debt.

Credit use increases future buying power.

Which of the following items is least appropriate to purchase with a credit card unless you will pay the bill in full when the statement is received?

When comparing loans from two or more sources you want to focus on the lowest monthly payment.

It is a smart move to consolidate all your student loans into one loan once you graduate from college.

Maxine used her bank credit card to make a three-day reservation at a fancy hotel.When she tried to charge another purchase to the same credit card,Maxine was surprised to learn that her credit limit had been reached.What probably caused this?

People slip up in building and maintaining good credit when they

Chapter 7 of the Bankruptcy Act is permitted when it would be highly unlikely that substantial repayment could ever be made.

Closing credit card accounts will increase your credit score.

Stockbrokers loan money to clients who have ____ accounts.

Identity theft is the most commonly perpetrated form of consumer fraud in the U.S.

Policyholders who have cash-value life insurance policies can obtain loans based on the cash values built up in their policies.

Consumer credit can take the form of an installment loan that is repaid in payments over a period of time.

The most well-known of the many different types of credit scores used by lenders today is the

Credit counseling agencies can provide individuals with credit counseling as well as assistance with financial problems.

Understanding Personal Finance

Career Planning

Financial Statements,tools,and Budgets

Managing Income Taxes

Managing Checking and Savings Accounts

Credit Cards and Consumer Loans

Vehicles and Other Major Purchases

Obtaining Affordable Housing

Managing Property and Liability Risk

Managing Health Expenses

Life Insurance Planning

Investment Fundamentals

Investing in Stocks and Bonds

Investing Through Mutual Funds

Real Estate and High-Risk Investments

Retirement Planning

Filters

Exam 6: Building and Maintaining Good Credit

Which of the following is generally not part of the process of opening a credit account?

Your debt limit is the overall maximum you believe you should owe based on your ability to meet the repayment obligations.

You may still owe money after repossession if there is a

Chapter 13 of the Bankruptcy Act provides for an immediate liquidation of assets.

Creditors can legally require information about ____ on a credit application.

It is possible to still owe money after an item of collateral is repossessed for nonpayment on the debt.

Credit use increases future buying power.

Which of the following items is least appropriate to purchase with a credit card unless you will pay the bill in full when the statement is received?

When comparing loans from two or more sources you want to focus on the lowest monthly payment.

It is a smart move to consolidate all your student loans into one loan once you graduate from college.

Maxine used her bank credit card to make a three-day reservation at a fancy hotel.When she tried to charge another purchase to the same credit card,Maxine was surprised to learn that her credit limit had been reached.What probably caused this?

People slip up in building and maintaining good credit when they

Chapter 7 of the Bankruptcy Act is permitted when it would be highly unlikely that substantial repayment could ever be made.

Closing credit card accounts will increase your credit score.

Stockbrokers loan money to clients who have ____ accounts.

Identity theft is the most commonly perpetrated form of consumer fraud in the U.S.

Policyholders who have cash-value life insurance policies can obtain loans based on the cash values built up in their policies.

Consumer credit can take the form of an installment loan that is repaid in ____ payments over a ____ period of time.

The most well-known of the many different types of credit scores used by lenders today is the

Credit counseling agencies can provide individuals with credit counseling as well as assistance with financial problems.

Understanding Personal Finance

Career Planning

Financial Statements,tools,and Budgets

Managing Income Taxes

Managing Checking and Savings Accounts

Credit Cards and Consumer Loans

Vehicles and Other Major Purchases

Obtaining Affordable Housing

Managing Property and Liability Risk

Managing Health Expenses

Life Insurance Planning

Investment Fundamentals

Investing in Stocks and Bonds

Investing Through Mutual Funds

Real Estate and High-Risk Investments

Retirement Planning

Filters

Consumer credit can take the form of an installment loan that is repaid in payments over a period of time.