Question 1

A credit bureau report may include

Accepted Answer

A) your account history. 
B) your spouse's name. 
C) a list of debtor contacts. 
D) All of the above. 
A) your account history. 
B) your spouse's name. 
C) a list of debtor contacts. 
D) All of the above. A

Question 2

Which of the following is an advantage of using credit?

Accepted Answer

A) It increases the need to cover cash flow shortages. 
B) It increases the number of cheques written. 
C) It does not affect your cash flow statement. 
D) It reduces the need to carry cash. 
A) It increases the need to cover cash flow shortages. 
B) It increases the number of cheques written. 
C) It does not affect your cash flow statement. 
D) It reduces the need to carry cash. D

Question 3

You should not use savings to pay off a credit card balance.

Accepted Answer

A) True 
 B)False  False

Question 4

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

Accepted Answer

A) dumpster surfing. 
B) dumpster diving. 
C) phishing. 
D) skimming. 
A) dumpster surfing. 
B) dumpster diving. 
C) phishing. 
D) skimming.

Question 5

Interest is charged each month on a revolving open-end credit on the outstanding balance.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is not a factor in the BEACON credit scoring?

Accepted Answer

A) Employer 
B) Length of relationship with creditors 
C) Marital status 
D) Your previous address 
A) Employer 
B) Length of relationship with creditors 
C) Marital status 
D) Your previous address

Question 7

Retail store credit cards, such as a Sears card, can be used in a restaurant.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is true about credit bureaus in Canada?

Accepted Answer

A) There are two federally appointed credit bureaus in Canada. 
B) It is impossible to have a better credit score at one bureau than the other. 
C) Lenders may access your credit information without your permission. 
D) Lenders may use more than one credit bureau for information. 
A) There are two federally appointed credit bureaus in Canada. 
B) It is impossible to have a better credit score at one bureau than the other. 
C) Lenders may access your credit information without your permission. 
D) Lenders may use more than one credit bureau for information.

Question 9

Explain why you would not use a credit card if you are making a purchase that you know you will not be able to pay off for a relatively long period of time.

Accepted Answer

Interest rates, compounding, d

Question 10

If a credit card company has a 20-day grace period and an interest rate of 20 percent, how much interest will be charged on a $5000 balance which gets paid 40 days after the due date using the average daily balance method?

Accepted Answer

A) $164.38 
B) $109.59 
C) $126.69 
D) $83.33 
A) $164.38 
B) $109.59 
C) $126.69 
D) $83.33

Question 11

Which of the following can be used by a creditor in deciding whether or not to grant credit?

Accepted Answer

A) Credit history 
B) Marital status 
C) Gender 
D) Any of the above 
A) Credit history 
B) Marital status 
C) Gender 
D) Any of the above

Question 12

Identity theft occurs only through individuals who do not have legitimate access to your information.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is true about credit repair services?

Accepted Answer

A) Using a credit repair service should be the first step in negotiating an insolvency. 
B) A credit repair service will work with the trustee in bankruptcy to administer a consumer proposal. 
C) A credit repair company should be contacted only as a last resort in avoiding bankruptcy. 
D) Credit repair companies have no special powers to correct information on your credit report. 
A) Using a credit repair service should be the first step in negotiating an insolvency. 
B) A credit repair service will work with the trustee in bankruptcy to administer a consumer proposal. 
C) A credit repair company should be contacted only as a last resort in avoiding bankruptcy. 
D) Credit repair companies have no special powers to correct information on your credit report.

Question 14

When applying for a credit card, a lender

Accepted Answer

A) is not interested in collateral because it cannot secure it. 
B) is expecting you to use the credit for small investments. 
C) wants to see your cash flow statement. 
D) will rely only on the reports from the credit agencies. 
A) is not interested in collateral because it cannot secure it. 
B) is expecting you to use the credit for small investments. 
C) wants to see your cash flow statement. 
D) will rely only on the reports from the credit agencies.

Question 15

One advantage of using credit is that it eliminates the need to carry cash.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following will have a negative effect on a credit history?

Accepted Answer

A) Financing a car and making payments on time 
B) Making as many purchases as possible with cash 
C) Never exceeding your credit limit on your credit card 
D) All the above options would have a positive affect on credit history. 
A) Financing a car and making payments on time 
B) Making as many purchases as possible with cash 
C) Never exceeding your credit limit on your credit card 
D) All the above options would have a positive affect on credit history.

Question 17

In evaluating a borrower's creditworthiness, income and expenses are carefully reviewed, but assets are not an issue.

Accepted Answer

A) True 
 B)False

Question 18

Low credit scores may result in

Accepted Answer

A) lower interest rates. 
B) higher interest rates. 
C) automatic acceptance of your credit application. 
D) targeting by credit card companies. 
A) lower interest rates. 
B) higher interest rates. 
C) automatic acceptance of your credit application. 
D) targeting by credit card companies.

Question 19

Historical credit problems normally remain on a credit bureau's report for seven years and ten years for bankruptcy.

Accepted Answer

A) True 
 B)False

Question 20

An advantage to credit is that it eliminates the need for writing cheques.

Accepted Answer

A) True 
 B)False

A credit bureau report may include

Which of the following is an advantage of using credit?

You should not use savings to pay off a credit card balance.

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

Interest is charged each month on a revolving open-end credit on the outstanding balance.

Which of the following is not a factor in the BEACON credit scoring?

Retail store credit cards, such as a Sears card, can be used in a restaurant.

Which of the following is true about credit bureaus in Canada?

Explain why you would not use a credit card if you are making a purchase that you know you will not be able to pay off for a relatively long period of time.

If a credit card company has a 20-day grace period and an interest rate of 20 percent, how much interest will be charged on a $5000 balance which gets paid 40 days after the due date using the average daily balance method?

Which of the following can be used by a creditor in deciding whether or not to grant credit?

Identity theft occurs only through individuals who do not have legitimate access to your information.

Which of the following is true about credit repair services?

When applying for a credit card, a lender

One advantage of using credit is that it eliminates the need to carry cash.

Which of the following will have a negative effect on a credit history?

In evaluating a borrower's creditworthiness, income and expenses are carefully reviewed, but assets are not an issue.

Low credit scores may result in

Historical credit problems normally remain on a credit bureau's report for seven years and ten years for bankruptcy.

An advantage to credit is that it eliminates the need for writing cheques.

Overview of a Financial Plan

Tools for Financial Planning - Applying Time Value Concepts

Tools for Financial Planning - Planning With Personal Financial Statements

Tools for Financial Planning - Using Tax Concepts for Planning

Banking Services and Managing Your Money

Personal Financing - Personal Loans

Personal Financing - Purchasing and Financing a Home

Protecting Your Wealth - Auto and Homeowners Insurance

Protecting Your Wealth - Health and Life Insurance

Personal Investing - Investing Fundamentals

Personal Investing - Investing in Stocks

Personal Investing - Investing in Bonds

Personal Investing - Investing in Mutual Funds

Retirement and Estate Planning - Retirement Planning

Retirement and Estate Planning - Estate Planning

Synthesis of Financial Planning - Integrating the Components of a Financial Plan

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Exam 6: Managing Your Liquidity - Assessing, Managing, and Securing Your Credit

A credit bureau report may include

Which of the following is an advantage of using credit?

You should not use savings to pay off a credit card balance.

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

Interest is charged each month on a revolving open-end credit on the outstanding balance.

Which of the following is not a factor in the BEACON credit scoring?

Retail store credit cards, such as a Sears card, can be used in a restaurant.

Which of the following is true about credit bureaus in Canada?

Explain why you would not use a credit card if you are making a purchase that you know you will not be able to pay off for a relatively long period of time.

If a credit card company has a 20-day grace period and an interest rate of 20 percent, how much interest will be charged on a $5000 balance which gets paid 40 days after the due date using the average daily balance method?

Which of the following can be used by a creditor in deciding whether or not to grant credit?

Identity theft occurs only through individuals who do not have legitimate access to your information.

Which of the following is true about credit repair services?

When applying for a credit card, a lender

One advantage of using credit is that it eliminates the need to carry cash.

Which of the following will have a negative effect on a credit history?

In evaluating a borrower's creditworthiness, income and expenses are carefully reviewed, but assets are not an issue.

Low credit scores may result in

Historical credit problems normally remain on a credit bureau's report for seven years and ten years for bankruptcy.

An advantage to credit is that it eliminates the need for writing cheques.

Overview of a Financial Plan

Tools for Financial Planning - Applying Time Value Concepts

Tools for Financial Planning - Planning With Personal Financial Statements

Tools for Financial Planning - Using Tax Concepts for Planning

Banking Services and Managing Your Money

Personal Financing - Personal Loans

Personal Financing - Purchasing and Financing a Home

Protecting Your Wealth - Auto and Homeowners Insurance

Protecting Your Wealth - Health and Life Insurance

Personal Investing - Investing Fundamentals

Personal Investing - Investing in Stocks

Personal Investing - Investing in Bonds

Personal Investing - Investing in Mutual Funds

Retirement and Estate Planning - Retirement Planning

Retirement and Estate Planning - Estate Planning

Synthesis of Financial Planning - Integrating the Components of a Financial Plan

Filters