Question 1

With open account credit,one can often avoid interest charges if

Accepted Answer

A) the account balance is paid in full every month. 
B) at least half the account balance is paid every month. 
C) the minimum payment is made every month. 
D) the account is a revolving credit account. 
E) the balance is below the credit limit. 
A) the account balance is paid in full every month. 
B) at least half the account balance is paid every month. 
C) the minimum payment is made every month. 
D) the account is a revolving credit account. 
E) the balance is below the credit limit. A

Question 2

If you initiated the telephone call,it is okay to give your credit card account number when ordering/purchasing from major catalog houses,airlines,hotels,and so on.

Accepted Answer

A) True 
 B)False  True

Question 3

It is not a good idea to use credit

Accepted Answer

A) for convenience. 
B) for durable goods. 
C) for consumable items. 
D) to partially finance investments. 
E) to improve one's credit rating. 
A) for convenience. 
B) for durable goods. 
C) for consumable items. 
D) to partially finance investments. 
E) to improve one's credit rating. C

Question 4

Borderline credit risks would most likely receive

Accepted Answer

A) delayed reconsideration for credit application. 
B) a limited line of credit. 
C) a negative credit rating. 
D) credit only as applied for. 
E) credit only in emergency situations. 
A) delayed reconsideration for credit application. 
B) a limited line of credit. 
C) a negative credit rating. 
D) credit only as applied for. 
E) credit only in emergency situations.

Question 5

Before filing for bankruptcy,debtors should consider seeking the help of a credit counselor.

Accepted Answer

A) True 
 B)False

Question 6

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-An example of open account credit would be a bank [debit | credit] card.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 7

Student credit cards typically require that one be enrolled in a 2- or 4-year college/university and

Accepted Answer

A) a parent's signature. 
B) own a vehicle. 
C) hold a job. 
D) have some form of income. 
E) take at least nine hours. 
A) a parent's signature. 
B) own a vehicle. 
C) hold a job. 
D) have some form of income. 
E) take at least nine hours.

Question 8

The purpose of a credit report is to evaluate the kind of risk you pose to the lender.

Accepted Answer

A) True 
 B)False

Question 9

Bank credit cards represent the most common kind of open account credit.

Accepted Answer

A) True 
 B)False

Question 10

The APR on a credit card account is 16%.Assuming a $1,926 balance and a $40 minimum payment,how much of the minimum payment will go to interest?

Accepted Answer

$1,926 ×.16/12 = $25

Question 11

Credit card users can often avoid finance charges entirely by paying their total balances by the stated due date.

Accepted Answer

A) True 
 B)False

Question 12

One can and should check his credit bureau file regularly.

Accepted Answer

A) True 
 B)False

Question 13

Filing Chapter 7 bankruptcy eliminates one's obligation to pay past-due alimony and child support payments.

Accepted Answer

A) True 
 B)False

Question 14

The majority of persons filing bankruptcy file Chapter 7 bankruptcy.

Accepted Answer

A) True 
 B)False

Question 15

The key to creditworthiness is to keep your debt safety ratio as high as possible.

Accepted Answer

A) True 
 B)False

Question 16

A problem with home equity loans is the

Accepted Answer

A) high rate of interest on these loans. 
B) difficulty in qualifying for these loans. 
C) short-term nature of these loans. 
D) temptation to spread payments over a long term. 
E) tax disadvantages of these loans. 
A) high rate of interest on these loans. 
B) difficulty in qualifying for these loans. 
C) short-term nature of these loans. 
D) temptation to spread payments over a long term. 
E) tax disadvantages of these loans.

Question 17

Interest rates on ____ are typically lower than on any other form of consumer credit.

Accepted Answer

A) reward credit cards 
B) debit cards 
C) credit cards 
D) home equity lines of credit 
E) unsecured personal credit 
A) reward credit cards 
B) debit cards 
C) credit cards 
D) home equity lines of credit 
E) unsecured personal credit

Question 18

Never adding up all your bills is one of the signs that you may be headed for serious credit problems.

Accepted Answer

A) True 
 B)False

Question 19

Saving is the preferred way to provide for financial emergencies.

Accepted Answer

A) True 
 B)False

Question 20

For a person who sometimes pays his entire credit balance and sometimes pays the minimum payment,which calculation method would be the least expensive?

Accepted Answer

A) average daily balance including new purchases 
B) average daily balance excluding new purchases 
C) two-cycle average daily balance including new purchases 
D) two-cycle average daily balance excluding new purchases 
E) both b and d would produce the same, low finance charge 
A) average daily balance including new purchases 
B) average daily balance excluding new purchases 
C) two-cycle average daily balance including new purchases 
D) two-cycle average daily balance excluding new purchases 
E) both b and d would produce the same, low finance charge

With open account credit,one can often avoid interest charges if

If you initiated the telephone call,it is okay to give your credit card account number when ordering/purchasing from major catalog houses,airlines,hotels,and so on.

It is not a good idea to use credit

Borderline credit risks would most likely receive

Before filing for bankruptcy,debtors should consider seeking the help of a credit counselor.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -An example of open account credit would be a bank [debit | credit] card.

Student credit cards typically require that one be enrolled in a 2- or 4-year college/university and

The purpose of a credit report is to evaluate the kind of risk you pose to the lender.

Bank credit cards represent the most common kind of open account credit.

The APR on a credit card account is 16%.Assuming a $1,926 balance and a $40 minimum payment,how much of the minimum payment will go to interest?

Credit card users can often avoid finance charges entirely by paying their total balances by the stated due date.

One can and should check his credit bureau file regularly.

Filing Chapter 7 bankruptcy eliminates one's obligation to pay past-due alimony and child support payments.

The majority of persons filing bankruptcy file Chapter 7 bankruptcy.

The key to creditworthiness is to keep your debt safety ratio as high as possible.

A problem with home equity loans is the

Interest rates on ____ are typically lower than on any other form of consumer credit.

Never adding up all your bills is one of the signs that you may be headed for serious credit problems.

Saving is the preferred way to provide for financial emergencies.

For a person who sometimes pays his entire credit balance and sometimes pays the minimum payment,which calculation method would be the least expensive?

Understanding the Financial Planning Process

Using Financial Statements and Budgets

Preparing Your Taxes

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds

Planning for Retirement

Preserving Your Estate

Filters

Exam 6: Using Credit

With open account credit,one can often avoid interest charges if

If you initiated the telephone call,it is okay to give your credit card account number when ordering/purchasing from major catalog houses,airlines,hotels,and so on.

It is not a good idea to use credit

Borderline credit risks would most likely receive

Before filing for bankruptcy,debtors should consider seeking the help of a credit counselor.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -An example of open account credit would be a bank [debit | credit] card.

Student credit cards typically require that one be enrolled in a 2- or 4-year college/university and

The purpose of a credit report is to evaluate the kind of risk you pose to the lender.

Bank credit cards represent the most common kind of open account credit.

The APR on a credit card account is 16%.Assuming a $1,926 balance and a $40 minimum payment,how much of the minimum payment will go to interest?

Credit card users can often avoid finance charges entirely by paying their total balances by the stated due date.

One can and should check his credit bureau file regularly.

Filing Chapter 7 bankruptcy eliminates one's obligation to pay past-due alimony and child support payments.

The majority of persons filing bankruptcy file Chapter 7 bankruptcy.

The key to creditworthiness is to keep your debt safety ratio as high as possible.

A problem with home equity loans is the

Interest rates on ____ are typically lower than on any other form of consumer credit.

Never adding up all your bills is one of the signs that you may be headed for serious credit problems.

Saving is the preferred way to provide for financial emergencies.

For a person who sometimes pays his entire credit balance and sometimes pays the minimum payment,which calculation method would be the least expensive?

Understanding the Financial Planning Process

Using Financial Statements and Budgets

Preparing Your Taxes

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds

Planning for Retirement

Preserving Your Estate

Filters