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

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, he or she is

Credit cards are an example of revolving open-end credit.

If you are a victim of identity theft, you may be turned down for employment as a result of incorrect background information.

Posing as an employee of a financial institution to obtain information for purposes of identity theft is an example of pretexting.

Using a shredder to destroy personal data will protect you from shoulder surfing.

Use of Financial Calculator TI BA II Plus required. Your credit card had balances of $800 for 13 days, $600 for 5 days, and $650 for 12 days. At an effective rate of 1.5 percent interest per month (30 days)how much is the interest charge using the average balance method?

Filing for bankruptcy will not affect your credit score.

Obtaining money, goods, and services is the only reason for identify theft.

Most identify theft victims discover the crime in a reactive, as opposed to a proactive, manner.

During the year you charged $4200 on your MasterCard, but last year's actual budget expenses show that you paid MasterCard $4998, for a total interest charge of 15 percent.

You have a credit card balance of $3000 from the previous month's purchases. With a 25 percent annual interest rate, how much finance charge will you have to pay using the previous balance method?

You have a credit card on which your balance for the first day after the grace period is $400. On the tenth day of the billing period you took out a cash advance of $500. Your card charges 19 percent on balances outstanding and begins calculating interest on cash advances immediately. What is your total interest due on the thirtieth day of the billing period (when the next statement is produced)?

There is credit insurance available that will entirely pay off all credit when you cannot work due to accident or illness.

Credit is convenient because

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

The Fair Credit Reporting Act limits the sharing of credit information.

Use of Financial Calculator TI BA II Plus required. How much more interest will you pay on a $10 000 loan at 12 percent calculated monthly versus the same loan at 12 percent calculated annually?

There is no cost to the merchant when you use a MasterCard or Visa.

Discuss the factors that are used to determine credit scoring in the BEACON model.

Name and briefly discuss three tactics that an identity thief may use.