Question 1

Credit reports on individual borrowers are issued by credit bureaus.

Accepted Answer

A) True 
 B)False

Question 2

Using more than 20 percent of one's take-home income to pay off consumer debt is one of the signs that one may be headed for serious credit problems.

Accepted Answer

A) True 
 B)False

Question 3

For a fee,credit bureaus can provide credit scores for prospective borrowers.

Accepted Answer

A) True 
 B)False

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.
-One condition of a secured credit card is that the holder must [pay a higher rate of interest | deposit an amount equal to the credit line into a CD].

Accepted Answer

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

Question 5

A good rule to remember when considering the use of credit is that the product purchased on credit should outlive the amount of time it takes to pay it off.

Accepted Answer

A) True 
 B)False

Question 6

Lindsey has a job with monthly take-home pay of $3,500.Using the suggested maximum debt safety ratio,what maximum debt burden per month can she assume? (Show all work.)

Accepted Answer

The maximum debt safety ratio

Question 7

The Wage Earner Plan requires debtors to give up most of their assets.

Accepted Answer

A) True 
 B)False

Question 8

The most common forms of open account credit are bank credit cards and retail charge cards.

Accepted Answer

A) True 
 B)False

Question 9

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.
-Using [credit | savings] to handle financial emergencies is the recommended choice.

Accepted Answer

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

Question 10

Interest rates on credit cards tend to be lower than most other forms of consumer credit.

Accepted Answer

A) True 
 B)False

Question 11

____ would be an indication of overspending.

Accepted Answer

A) Having little or no savings 
B) Collection agencies calling you 
C) All of your credit cards charged to their limit 
D) Borrowing to pay for incidentals 
E) All of these 
A) Having little or no savings 
B) Collection agencies calling you 
C) All of your credit cards charged to their limit 
D) Borrowing to pay for incidentals 
E) All of these

Question 12

A credit card can provide an interest-free loan if you

Accepted Answer

A) pay for purchases within six months. 
B) pay the minimum payment. 
C) pay the entire balance on or before the due date. 
D) pay the previous balance by the due date. 
E) receive a cash advance. 
A) pay for purchases within six months. 
B) pay the minimum payment. 
C) pay the entire balance on or before the due date. 
D) pay the previous balance by the due date. 
E) receive a cash advance.

Question 13

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 decision whether or not to grant you credit will be made by [individual creditors | the credit bureau].

Accepted Answer

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

Question 14

Open account credit is a form of credit extended to a consumer in advance of any transaction.

Accepted Answer

A) True 
 B)False

Question 15

Debit cards look like credit cards,but they work like checks.

Accepted Answer

A) True 
 B)False

Question 16

____ would be an acceptable use of credit.

Accepted Answer

A) Purchase of a house 
B) A financial emergency 
C) Shopping convenience 
D) Investing 
E) All of these 
A) Purchase of a house 
B) A financial emergency 
C) Shopping convenience 
D) Investing 
E) All of these

Question 17

Clare's gross salary is $36,000 annually and her after-tax income is $28,800.What is Clare's maximum recommended monthly consumer credit payment?

Accepted Answer

A) $600. 
B) $480. 
C) $450. 
D) $360. 
E) $200. 
A) $600. 
B) $480. 
C) $450. 
D) $360. 
E) $200.

Question 18

Most organizations that issue credit cards have basically the same qualifications for card applicants.

Accepted Answer

A) True 
 B)False

Question 19

Secured credit cards require that the cardholder put up collateral in order to get the card.

Accepted Answer

A) True 
 B)False

Question 20

Chapter 7 bankruptcy will typically

Accepted Answer

A) eliminate most debt obligations. 
B) require monthly payments to a bankruptcy trustee. 
C) stay on one's credit record up to 12 years. 
D) a and c 
E) a, b, and c 
A) eliminate most debt obligations. 
B) require monthly payments to a bankruptcy trustee. 
C) stay on one's credit record up to 12 years. 
D) a and c 
E) a, b, and c

Credit reports on individual borrowers are issued by credit bureaus.

Using more than 20 percent of one's take-home income to pay off consumer debt is one of the signs that one may be headed for serious credit problems.

For a fee,credit bureaus can provide credit scores for prospective borrowers.

A good rule to remember when considering the use of credit is that the product purchased on credit should outlive the amount of time it takes to pay it off.

Lindsey has a job with monthly take-home pay of $3,500.Using the suggested maximum debt safety ratio,what maximum debt burden per month can she assume? (Show all work.)

The Wage Earner Plan requires debtors to give up most of their assets.

The most common forms of open account credit are bank credit cards and retail charge cards.

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. -Using [credit | savings] to handle financial emergencies is the recommended choice.

Interest rates on credit cards tend to be lower than most other forms of consumer credit.

____ would be an indication of overspending.

A credit card can provide an interest-free loan if you

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 decision whether or not to grant you credit will be made by [individual creditors | the credit bureau].

Open account credit is a form of credit extended to a consumer in advance of any transaction.

Debit cards look like credit cards,but they work like checks.

____ would be an acceptable use of credit.

Clare's gross salary is $36,000 annually and her after-tax income is $28,800.What is Clare's maximum recommended monthly consumer credit payment?

Most organizations that issue credit cards have basically the same qualifications for card applicants.

Secured credit cards require that the cardholder put up collateral in order to get the card.

Chapter 7 bankruptcy will typically

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 reports on individual borrowers are issued by credit bureaus.

Using more than 20 percent of one's take-home income to pay off consumer debt is one of the signs that one may be headed for serious credit problems.

For a fee,credit bureaus can provide credit scores for prospective borrowers.

A good rule to remember when considering the use of credit is that the product purchased on credit should outlive the amount of time it takes to pay it off.

Lindsey has a job with monthly take-home pay of $3,500.Using the suggested maximum debt safety ratio,what maximum debt burden per month can she assume? (Show all work.)

The Wage Earner Plan requires debtors to give up most of their assets.

The most common forms of open account credit are bank credit cards and retail charge cards.

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. -Using [credit | savings] to handle financial emergencies is the recommended choice.

Interest rates on credit cards tend to be lower than most other forms of consumer credit.

____ would be an indication of overspending.

A credit card can provide an interest-free loan if you

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 decision whether or not to grant you credit will be made by [individual creditors | the credit bureau].

Open account credit is a form of credit extended to a consumer in advance of any transaction.

Debit cards look like credit cards,but they work like checks.

____ would be an acceptable use of credit.

Clare's gross salary is $36,000 annually and her after-tax income is $28,800.What is Clare's maximum recommended monthly consumer credit payment?

Most organizations that issue credit cards have basically the same qualifications for card applicants.

Secured credit cards require that the cardholder put up collateral in order to get the card.

Chapter 7 bankruptcy will typically

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