Question 1

Individuals with better credit ratings usually can secure higher credit limits.

Accepted Answer

A) True 
 B)False  True

Question 2

The required monthly payment on an open account will be the smaller of a minimum dollar amount or a specified percentage of the balance.

Accepted Answer

A) True 
 B)False  False

Question 3

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  True

Question 4

Having arranged and fully repaid a small loan should help improve creditworthiness.

Accepted Answer

A) True 
 B)False

Question 5

Using credit is the ideal way to provide for financial emergencies.

Accepted Answer

A) True 
 B)False

Question 6

Rebate cards work best for those who use the rebates and:

Accepted Answer

A)  charge large amounts on the card. 
B)  pay the total card balance off monthly. 
C)  carry high monthly balances. 
D)  travel internationally. 
E)  a and b 
A)  charge large amounts on the card. 
B)  pay the total card balance off monthly. 
C)  carry high monthly balances. 
D)  travel internationally. 
E)  a and b

Question 7

_____ is a benefit of borrowing.

Accepted Answer

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

Question 8

Denise (a single taxpayer)contributes $6,000 annually to her church.In addition,she owns a home in which she has $20,000 equity,and she itemizes deductions.If she pays $1,000 interest on credit cards,$6,000 interest on her home equity loan,and is in the 25% marginal tax bracket,calculate Denise's tax savings from these interest payments.

Accepted Answer

$6,000 × 0.25 = $1,5

Question 9

The market value of your house is $175,000 and you have a first mortgage balance of $100,000.If a lender requires a 80% loan-to-market value ratio,how large could your home equity loan be?

Accepted Answer

Home equity loan = (

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.
-A person who pays her credit balance off every month should look for a credit card with [a low interest rate | no annual fee].

Accepted Answer

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

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

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 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.
-Student credit cards usually [do | do not] require parental or guardian guarantees.

Accepted Answer

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

Question 14

Saving is the preferred way to provide for financial emergencies.

Accepted Answer

A) True 
 B)False

Question 15

Finance charges on two credit cards with the same stated annual percentage rate:

Accepted Answer

A)  will always be the same. 
B)  will be same as the rate calculated in the federal law. 
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)  will be same as the rate calculated in the federal law. 
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

Clare's annual gross salary is $36,000 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 17

Which of the following forms of consumer credits is the cheapest and offers tax shelters?

Accepted Answer

A)  Automobile loans 
B)  Home equity loans 
C)  Credit cards 
D)  Unsecured personal credit 
E)  Travel and entertainment cards 
A)  Automobile loans 
B)  Home equity loans 
C)  Credit cards 
D)  Unsecured personal credit 
E)  Travel and entertainment cards

Question 18

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.
-In terms of overall household liabilities,[auto | home] loans comprise the largest share.

Accepted Answer

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

Question 19

One can and should check his credit bureau file regularly.

Accepted Answer

A) True 
 B)False

Question 20

Credit reports on individual borrowers are issued by credit card issuers.

Accepted Answer

A) True 
 B)False

Individuals with better credit ratings usually can secure higher credit limits.

The required monthly payment on an open account will be the smaller of a minimum dollar amount or a specified percentage of the balance.

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

Having arranged and fully repaid a small loan should help improve creditworthiness.

Using credit is the ideal way to provide for financial emergencies.

Rebate cards work best for those who use the rebates and:

_____ is a benefit of borrowing.

The market value of your house is $175,000 and you have a first mortgage balance of $100,000.If a lender requires a 80% loan-to-market value ratio,how large could your home equity loan be?

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

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

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. -Student credit cards usually [do | do not] require parental or guardian guarantees.

Saving is the preferred way to provide for financial emergencies.

Finance charges on two credit cards with the same stated annual percentage rate:

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

Which of the following forms of consumer credits is the cheapest and offers tax shelters?

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. -In terms of overall household liabilities,[auto | home] loans comprise the largest share.

One can and should check his credit bureau file regularly.

Credit reports on individual borrowers are issued by credit card issuers.

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

Individuals with better credit ratings usually can secure higher credit limits.

The required monthly payment on an open account will be the smaller of a minimum dollar amount or a specified percentage of the balance.

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

Having arranged and fully repaid a small loan should help improve creditworthiness.

Using credit is the ideal way to provide for financial emergencies.

Rebate cards work best for those who use the rebates and:

_____ is a benefit of borrowing.

The market value of your house is $175,000 and you have a first mortgage balance of $100,000.If a lender requires a 80% loan-to-market value ratio,how large could your home equity loan be?

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

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

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. -Student credit cards usually [do | do not] require parental or guardian guarantees.

Saving is the preferred way to provide for financial emergencies.

Finance charges on two credit cards with the same stated annual percentage rate:

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

Which of the following forms of consumer credits is the cheapest and offers tax shelters?

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. -In terms of overall household liabilities,[auto | home] loans comprise the largest share.

One can and should check his credit bureau file regularly.

Credit reports on individual borrowers are issued by credit card issuers.

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