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

A typical credit report will disclose the following information except

Show all of the calculations and make any necessary comments as to how you would choose between the following types of credit cards for your own personal use. Quick Bank Card: Interest rate 18.5 percent, no reward points, 25-day grace period, $10 000 limit. Friendly Bank Card: Interest rate 19.5 percent, no rewards, free credit insurance,15-day grace period, $3500 limit. Star Member Card: Interest rate 15 percent, 2 percent reward points, 15-day grace period, $150 annual fee, $5000 limit. Stage 1 Card: Interest rate 17 percent, 2 percent reward points, 25-day grace period, $50 annual fee, $2000 limit.

The appropriate use of credit

Credit is useful when

Discuss at least two ways in which you can protect yourself from identity theft.

Credit cards used for cash advances always carry a lower interest rate.

Unless your identity is stolen by someone out of province, you should only report the crime to local law enforcement.

What is the minimum credit score required by financial institutions?

Use of Financial Calculator TI BA II Plus required. If a company uses the adjusted balance method of calculating interest at 1.75 percent monthly, what would be the new balance on your credit card if it had a balance of $650 and you paid $190 off before the adjusted billing period?

Using email messages from a legitimate source to obtain account information for the purpose of identity theft is referred to as

The largest component of the credit score is

Victims of identity theft will not be held responsible for fraudulent charges against their accounts.

The most important element affecting your credit score is your payment history.

Credit represents funds provided by a debtor to a lender that the lender will repay with interest or fees in the future.

If you receive a phone call that seeks to verify or update personal information, you should

Even though you may have a very high credit score, the loan approval

Of the following statements, which is a disadvantage of using credit?

At your place of employment, which of the following is acceptable?

Use of Financial Calculator TI BA II Plus required. Beth wants to borrow $18 000 for five years and she has a choice of two loans. One carries an annual rate of 10 percent and the other a 9.5 percent rate compounded semi-annually. Which is her best choice? Calculate the answer by comparing the effective annual rates of interest.

Using more credit than can be repaid is a primary cause of individual bankruptcies.