Question 1

You can instruct a credit bureau to not release your credit report to anyone without your permission by requesting a credit card block.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is the least appropriate reason for using credit?

Accepted Answer

A)  ​To take advantage of free credit 
B)  ​To consolidate debts 
C)  ​To obtain an education 
D)  ​To buy something you would likely buy soon but today it is on sale 
A)  ​To take advantage of free credit 
B)  ​To consolidate debts 
C)  ​To obtain an education 
D)  ​To buy something you would likely buy soon but today it is on sale

Question 3

The following is a sign of overindebtedness:

Accepted Answer

A)  ​Remaining under the maximum approved credit limits on your credit cards 
B)  ​Requesting new credit cards and increases in credit limits 
C)  ​Paying the full balance on your credit card each month 
D)  ​Paying insurance premiums,taxes,or other large,predictable bills by payroll deduction 
A)  ​Remaining under the maximum approved credit limits on your credit cards 
B)  ​Requesting new credit cards and increases in credit limits 
C)  ​Paying the full balance on your credit card each month 
D)  ​Paying insurance premiums,taxes,or other large,predictable bills by payroll deduction

Question 4

A debt-to-equity method provides a quick idea of one's financial solvency.The larger the ratio,the riskier the likelihood of repayment.

Accepted Answer

A) True 
 B)False

Question 5

People can use credit to take advantage of "free" credit.

Accepted Answer

A) True 
 B)False

Question 6

Using the continuous-debt method of setting your debt limit,you should be able get completely out of debt (other than your mortgage)at least once every ____ years

Accepted Answer

A)  ​2 
B)  ​4 
C)  ​6 
D)  ​8 
A)  ​2 
B)  ​4 
C)  ​6 
D)  ​8

Question 7

Approximately one-fifth of all loans granted by consumer finance companies are for the purpose of debt consolidation.

Accepted Answer

A) True 
 B)False

Question 8

Convenience use of credit is common.

Accepted Answer

A) True 
 B)False

Question 9

A consumer that has nonmortgage debt repayments of 10 percent or more of annual take-home pay is seriously in debt.

Accepted Answer

A) True 
 B)False

Question 10

Generally,debt consolidation loans ____ monthly payments and ____ the interest rate on the debt.

Accepted Answer

A)  ​increase;increase 
B)  ​decrease;decrease 
C)  ​increase;decrease 
D)  ​decrease;increase 
A)  ​increase;increase 
B)  ​decrease;decrease 
C)  ​increase;decrease 
D)  ​decrease;increase

Question 11

A borrower with an excellent credit history would be most likely to receive credit with

Accepted Answer

A)  ​higher credit limits. 
B)  ​lower interest rates. 
C)  ​variable interest rates. 
D)  ​both higher credit limits and lower interest rates. 
A)  ​higher credit limits. 
B)  ​lower interest rates. 
C)  ​variable interest rates. 
D)  ​both higher credit limits and lower interest rates.

Question 12

Bankruptcy remains on one's credit record for seven years.

Accepted Answer

A) True 
 B)False

Question 13

Credit bureau files are used to help evaluate applications for

Accepted Answer

A)  ​credit. 
B)  ​employment. 
C)  ​insurance. 
D)  ​All of these. 
A)  ​credit. 
B)  ​employment. 
C)  ​insurance. 
D)  ​All of these.

Question 14

Interest is the price of credit.

Accepted Answer

A) True 
 B)False

Question 15

The APR can be used to compare credit contracts with different time periods,finance charges,repayment schedules,and amounts borrowed.

Accepted Answer

A) True 
 B)False

Question 16

If the credit bureau cannot reinvestigate an item on your credit report in ____ days,the item must be removed from your file.

Accepted Answer

A)  ​15 
B)  ​30 
C)  ​45 
D)  ​60 
A)  ​15 
B)  ​30 
C)  ​45 
D)  ​60

Question 17

The best measure of the true cost of credit is the

Accepted Answer

A)  ​monthly payment. 
B)  ​finance charge. 
C)  ​annual percentage rate of interest. 
D)  ​late fee. 
A)  ​monthly payment. 
B)  ​finance charge. 
C)  ​annual percentage rate of interest. 
D)  ​late fee.

Question 18

Credit cards allow repeated use of credit as long as equal monthly payments are maintained over a set period of time.

Accepted Answer

A) True 
 B)False

Question 19

You should review your credit bureau reports at least once every three years.

Accepted Answer

A) True 
 B)False

Question 20

Closing unused credit card accounts that have been open for a long time will likely not improve your credit score.

Accepted Answer

A) True 
 B)False

You can instruct a credit bureau to not release your credit report to anyone without your permission by requesting a credit card block.

Which of the following is the least appropriate reason for using credit?

The following is a sign of overindebtedness:

A debt-to-equity method provides a quick idea of one's financial solvency.The larger the ratio,the riskier the likelihood of repayment.

People can use credit to take advantage of "free" credit.

Using the continuous-debt method of setting your debt limit,you should be able get completely out of debt (other than your mortgage)at least once every ____ years

Approximately one-fifth of all loans granted by consumer finance companies are for the purpose of debt consolidation.

Convenience use of credit is common.

A consumer that has nonmortgage debt repayments of 10 percent or more of annual take-home pay is seriously in debt.

Generally,debt consolidation loans monthly payments and the interest rate on the debt.

A borrower with an excellent credit history would be most likely to receive credit with

Bankruptcy remains on one's credit record for seven years.

Credit bureau files are used to help evaluate applications for

Interest is the price of credit.

The APR can be used to compare credit contracts with different time periods,finance charges,repayment schedules,and amounts borrowed.

If the credit bureau cannot reinvestigate an item on your credit report in ____ days,the item must be removed from your file.

The best measure of the true cost of credit is the

Credit cards allow repeated use of credit as long as equal monthly payments are maintained over a set period of time.

You should review your credit bureau reports at least once every three years.

Closing unused credit card accounts that have been open for a long time will likely not improve your credit score.

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

You can instruct a credit bureau to not release your credit report to anyone without your permission by requesting a credit card block.

Which of the following is the least appropriate reason for using credit?

The following is a sign of overindebtedness:

A debt-to-equity method provides a quick idea of one's financial solvency.The larger the ratio,the riskier the likelihood of repayment.

People can use credit to take advantage of "free" credit.

Using the continuous-debt method of setting your debt limit,you should be able get completely out of debt (other than your mortgage)at least once every ____ years

Approximately one-fifth of all loans granted by consumer finance companies are for the purpose of debt consolidation.

Convenience use of credit is common.

A consumer that has nonmortgage debt repayments of 10 percent or more of annual take-home pay is seriously in debt.

Generally,debt consolidation loans ____ monthly payments and ____ the interest rate on the debt.

A borrower with an excellent credit history would be most likely to receive credit with

Bankruptcy remains on one's credit record for seven years.

Credit bureau files are used to help evaluate applications for

Interest is the price of credit.

The APR can be used to compare credit contracts with different time periods,finance charges,repayment schedules,and amounts borrowed.

If the credit bureau cannot reinvestigate an item on your credit report in ____ days,the item must be removed from your file.

The best measure of the true cost of credit is the

Credit cards allow repeated use of credit as long as equal monthly payments are maintained over a set period of time.

You should review your credit bureau reports at least once every three years.

Closing unused credit card accounts that have been open for a long time will likely not improve your credit score.

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

Generally,debt consolidation loans monthly payments and the interest rate on the debt.