Question 1

Credit bureau files often include information such as political and religious affiliations in addition to financial information.

Accepted Answer

A) True 
 B)False

Question 2

Unsecured lines of credit are easy to use and often use some form of collateral as default protection.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following are true regarding credit scoring systems?

Accepted Answer

A) Lower scores are better than higher scores. 
B) Scoring systems are based on statistical studies. 
C) Credit unions calculate and sell credit scores to lenders. 
D) Females receive higher score than males. 
E) All of the above are true. 
A) Lower scores are better than higher scores. 
B) Scoring systems are based on statistical studies. 
C) Credit unions calculate and sell credit scores to lenders. 
D) Females receive higher score than males. 
E) All of the above are true.

Question 4

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.
-Interest paid on a [home equity line of credit | credit card] would be deductible if you itemize your deductions on your federal tax return.

Accepted Answer

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

Question 5

The most common form of open account credit is the debit card.

Accepted Answer

A) True 
 B)False

Question 6

Having a checking account tells a creditor that you have some experience in managing your own funds.

Accepted Answer

A) True 
 B)False

Question 7

Bank credit card purchases always begin accruing interest charges immediately.

Accepted Answer

A) True 
 B)False

Question 8

Revolving credit lines are often accessed by writing checks.

Accepted Answer

A) True 
 B)False

Question 9

____ is a benefit of using credit.

Accepted Answer

A) The ability to buy expensive goods while spreading the payments over time 
B) Providing payments that fit into a budget 
C) Having a permanent record of transactions 
D) Being able to purchase goods and services when checks are not acceptable 
E) All of these. 
A) The ability to buy expensive goods while spreading the payments over time 
B) Providing payments that fit into a budget 
C) Having a permanent record of transactions 
D) Being able to purchase goods and services when checks are not acceptable 
E) All of these.

Question 10

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.
-The most expensive method of determining finance charges on revolving credit would be [ADB including new purchases | ADB excluding new purchases].

Accepted Answer

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

Question 11

A credit card user's credit rating will be harmed if she pays only the minimum monthly payment on a credit card.

Accepted Answer

A) True 
 B)False

Question 12

If your monthly before-tax income is $2,000 and your monthly take-home pay is $1,500,your maximum monthly consumer credit payments should not exceed

Accepted Answer

A) $600. 
B) $450. 
C) $400. 
D) $300. 
E) $200. 
A) $600. 
B) $450. 
C) $400. 
D) $300. 
E) $200.

Question 13

The amount of finance charges one pays on a credit card depends only on APR and the amount one charges.

Accepted Answer

A) True 
 B)False

Question 14

Credit should not consistently be used for nondurable goods.

Accepted Answer

A) True 
 B)False

Question 15

Finance charges on two credit cards with the same stated APR

Accepted Answer

A) will always be the same. 
B) by federal law must be calculated the same way. 
C) will be determined by the type of credit card used. 
D) will be determined by the method used to calculate balances. 
E) none of these. 
A) will always be the same. 
B) by federal law must be calculated the same way. 
C) will be determined by the type of credit card used. 
D) will be determined by the method used to calculate balances. 
E) none of these.

Question 16

With prepaid cards,there is no established line of credit.

Accepted Answer

A) True 
 B)False

Question 17

As a percent of take-home pay,monthly consumer credit payments should not exceed

Accepted Answer

A) 25%. 
B) 20%. 
C) 15%. 
D) 10%. 
E) 5%. 
A) 25%. 
B) 20%. 
C) 15%. 
D) 10%. 
E) 5%.

Question 18

As a rule,the smaller the bank or S&L,the more likely it is to charge an annual fee for its credit cards.

Accepted Answer

A) True 
 B)False

Question 19

All of the following are key items lenders look at in granting credit except

Accepted Answer

A) income. 
B) outstanding debt. 
C) stability in employment and housing. 
D) religious affiliations. 
E) credit history. 
A) income. 
B) outstanding debt. 
C) stability in employment and housing. 
D) religious affiliations. 
E) credit history.

Question 20

Jacki (a single taxpayer in the 28% marginal tax bracket)owns a home in which she has $30,000 equity,and she itemizes deductions.She pays $1,000 interest on credit cards and $9,000 interest on her home equity loan.Calculate Jacki's tax savings from these interest payments.

Accepted Answer

$9,000 × 0.28 = $2,5

Credit bureau files often include information such as political and religious affiliations in addition to financial information.

Unsecured lines of credit are easy to use and often use some form of collateral as default protection.

Which of the following are true regarding credit scoring systems?

The most common form of open account credit is the debit card.

Having a checking account tells a creditor that you have some experience in managing your own funds.

Bank credit card purchases always begin accruing interest charges immediately.

Revolving credit lines are often accessed by writing checks.

____ is a benefit of using credit.

A credit card user's credit rating will be harmed if she pays only the minimum monthly payment on a credit card.

If your monthly before-tax income is $2,000 and your monthly take-home pay is $1,500,your maximum monthly consumer credit payments should not exceed

The amount of finance charges one pays on a credit card depends only on APR and the amount one charges.

Credit should not consistently be used for nondurable goods.

Finance charges on two credit cards with the same stated APR

With prepaid cards,there is no established line of credit.

As a percent of take-home pay,monthly consumer credit payments should not exceed

As a rule,the smaller the bank or S&L,the more likely it is to charge an annual fee for its credit cards.

All of the following are key items lenders look at in granting credit except

Jacki (a single taxpayer in the 28% marginal tax bracket)owns a home in which she has $30,000 equity,and she itemizes deductions.She pays $1,000 interest on credit cards and $9,000 interest on her home equity loan.Calculate Jacki's tax savings from these interest payments.

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

Credit bureau files often include information such as political and religious affiliations in addition to financial information.

Unsecured lines of credit are easy to use and often use some form of collateral as default protection.

Which of the following are true regarding credit scoring systems?

The most common form of open account credit is the debit card.

Having a checking account tells a creditor that you have some experience in managing your own funds.

Bank credit card purchases always begin accruing interest charges immediately.

Revolving credit lines are often accessed by writing checks.

____ is a benefit of using credit.

A credit card user's credit rating will be harmed if she pays only the minimum monthly payment on a credit card.

If your monthly before-tax income is $2,000 and your monthly take-home pay is $1,500,your maximum monthly consumer credit payments should not exceed

The amount of finance charges one pays on a credit card depends only on APR and the amount one charges.

Credit should not consistently be used for nondurable goods.

Finance charges on two credit cards with the same stated APR

With prepaid cards,there is no established line of credit.

As a percent of take-home pay,monthly consumer credit payments should not exceed

As a rule,the smaller the bank or S&L,the more likely it is to charge an annual fee for its credit cards.

All of the following are key items lenders look at in granting credit except

Jacki (a single taxpayer in the 28% marginal tax bracket)owns a home in which she has $30,000 equity,and she itemizes deductions.She pays $1,000 interest on credit cards and $9,000 interest on her home equity loan.Calculate Jacki's tax savings from these interest payments.

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