Exam 6: Building and Maintaining Good Credit

Under the concept of ____,lenders may offer lower interest rates to applicants with the highest credit scores while charging steeper rates to more-risky applicants.

(Multiple Choice)

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Question 61

A principal problem with using credit is the opportunity cost of being less able to save and invest.

(True/False)

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Question 62

Pay-day lenders are businesses that grant credit when they honor a personal check but agree not to deposit the check for a week or longer.

(True/False)

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Question 63

Bankruptcy is a constitutionally guaranteed right that permits people (and businesses)to ask a court to find them officially unable to meet their debts.

(True/False)

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Question 64

Refinancing a loan for more money than was originally owed is called a(n)

(Multiple Choice)

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Question 65

The information about you contained in credit bureau files is one of the most important aspects of your financial life.

(True/False)

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Question 66

The only real source for a free credit report is through

(Multiple Choice)

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Question 67

Usury laws establish the maximum loan amounts,interest rates,and credit-related fees for different types of loans from various sources.

(True/False)

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Question 68

Sales finance companies usually require collateral and deal with customers who are considered poor risks.

(True/False)

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Question 69

A credit applicant is required by federal regulations to disclose all of his or her sources of income.

(True/False)

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Question 70

You should try to borrow from the most selective lender for which you can qualify.

(True/False)

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Question 71

You can take on more debt if your debt payments-to-disposable income ratio is in the range of

(Multiple Choice)

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Question 72

When debts were accumulated in both names,divorce decrees have a legal effect on who technically owes which debts.

(True/False)

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Question 73

The best use of credit is probably to

(Multiple Choice)

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Question 74

If you find an error or omission on your credit report,you should notify the credit bureau that you wish to exercise your right to reinvestigation under the

(Multiple Choice)

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Question 75

What do credit bureaus do?

(Multiple Choice)

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Question 76

The debt-to-income method of determining your debt limit compares nonmortgage debts to take-home pay.

(True/False)

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Question 77

Which of the following statements is not correct regarding Chapter 7 of the Bankruptcy Act?

(Multiple Choice)

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Question 78

Which of the following can be obtained using credit?

(Multiple Choice)

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Question 79

Lending by sales finance companies are most commonly associated with

(Multiple Choice)

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Question 80

Showing 61 - 80 of 143

Under the concept of ____,lenders may offer lower interest rates to applicants with the highest credit scores while charging steeper rates to more-risky applicants.

A principal problem with using credit is the opportunity cost of being less able to save and invest.

Pay-day lenders are businesses that grant credit when they honor a personal check but agree not to deposit the check for a week or longer.

Bankruptcy is a constitutionally guaranteed right that permits people (and businesses)to ask a court to find them officially unable to meet their debts.

Refinancing a loan for more money than was originally owed is called a(n)

The information about you contained in credit bureau files is one of the most important aspects of your financial life.

The only real source for a free credit report is through

Usury laws establish the maximum loan amounts,interest rates,and credit-related fees for different types of loans from various sources.

Sales finance companies usually require collateral and deal with customers who are considered poor risks.

A credit applicant is required by federal regulations to disclose all of his or her sources of income.

You should try to borrow from the most selective lender for which you can qualify.

You can take on more debt if your debt payments-to-disposable income ratio is in the range of

When debts were accumulated in both names,divorce decrees have a legal effect on who technically owes which debts.

The best use of credit is probably to

If you find an error or omission on your credit report,you should notify the credit bureau that you wish to exercise your right to reinvestigation under the

What do credit bureaus do?

The debt-to-income method of determining your debt limit compares nonmortgage debts to take-home pay.

Which of the following statements is not correct regarding Chapter 7 of the Bankruptcy Act?

Which of the following can be obtained using credit?

Lending by sales finance companies are most commonly associated with

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

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