Question 1

Which of the following would be an indication of overspending?

Accepted Answer

A)  Your checks are bouncing. 
B)  Collection agencies are calling you frequently. 
C)  All your credit cards are charged up to their limits. 
D)  You have no cash reserves and must borrow for incidentals. 
E)  All of the above 
A)  Your checks are bouncing. 
B)  Collection agencies are calling you frequently. 
C)  All your credit cards are charged up to their limits. 
D)  You have no cash reserves and must borrow for incidentals. 
E)  All of the above

Question 2

If the information on your credit report is in dispute,you are entitled to:

Accepted Answer

A)  correct it. 
B)  sue. 
C)  erase it. 
D)  supply your own explanation about the dispute. 
E)  withdraw from the credit bureau. 
A)  correct it. 
B)  sue. 
C)  erase it. 
D)  supply your own explanation about the dispute. 
E)  withdraw from the credit bureau.

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

A monthly credit card statement need not include information about the:

Accepted Answer

A)  size of the payment. 
B)  payment due date. 
C)  type of the goods purchased. 
D)  annual percentage rate. 
E)  finance charge,if any. 
A)  size of the payment. 
B)  payment due date. 
C)  type of the goods purchased. 
D)  annual percentage rate. 
E)  finance charge,if any.

Question 5

The more credit cards one has,the better one's credit score.

Accepted Answer

A) True 
 B)False

Question 6

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 7

For someone with a good credit rating,lenders will typically lend up to 100% of equity in a home using a home equity credit line.

Accepted Answer

A) True 
 B)False

Question 8

It is not a good idea to use credit for:

Accepted Answer

A)  convenience. 
B)  durable expenses. 
C)  consumable items. 
D)  investments. 
E)  improving one's credit rating. 
A)  convenience. 
B)  durable expenses. 
C)  consumable items. 
D)  investments. 
E)  improving one's credit rating.

Question 9

Credit should not consistently be used for nondurable goods.

Accepted Answer

A) True 
 B)False

Question 10

Credit scoring systems are often used by lenders to determine your creditworthiness.

Accepted Answer

A) True 
 B)False

Question 11

The most common method used by lenders to apply finance charges to credit cards is the average daily balance including new purchases method.

Accepted Answer

A) True 
 B)False

Question 12

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 13

A debt safety ratio of 25% might be a signal of financial trouble ahead.

Accepted Answer

A) True 
 B)False

Question 14

The interest rates on credit cards are lower than any other form of credit.

Accepted Answer

A) True 
 B)False

Question 15

It is recommended that you never give your credit card account number over the phone to people or organizations who call you.

Accepted Answer

A) True 
 B)False

Question 16

Anna uses her credit card regularly,but she pays the total balance monthly.Anna should look for a credit account with:

Accepted Answer

A)  no annual fee. 
B)  low interest rates. 
C)  long grace period. 
D)  a and b 
E)  a and c 
A)  no annual fee. 
B)  low interest rates. 
C)  long grace period. 
D)  a and b 
E)  a and c

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

A) True 
 B)False

Which of the following would be an indication of overspending?

If the information on your credit report is in dispute,you are entitled to:

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

A monthly credit card statement need not include information about the:

The more credit cards one has,the better one's credit score.

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

For someone with a good credit rating,lenders will typically lend up to 100% of equity in a home using a home equity credit line.

It is not a good idea to use credit for:

Credit should not consistently be used for nondurable goods.

Credit scoring systems are often used by lenders to determine your creditworthiness.

The most common method used by lenders to apply finance charges to credit cards is the average daily balance including new purchases method.

A debt safety ratio of 25% might be a signal of financial trouble ahead.

The interest rates on credit cards are lower than any other form of credit.

It is recommended that you never give your credit card account number over the phone to people or organizations who call you.

Anna uses her credit card regularly,but she pays the total balance monthly.Anna should look for a credit account with:

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

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

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

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

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

Which of the following would be an indication of overspending?

If the information on your credit report is in dispute,you are entitled to:

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

A monthly credit card statement need not include information about the:

The more credit cards one has,the better one's credit score.

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

For someone with a good credit rating,lenders will typically lend up to 100% of equity in a home using a home equity credit line.

It is not a good idea to use credit for:

Credit should not consistently be used for nondurable goods.

Credit scoring systems are often used by lenders to determine your creditworthiness.

The most common method used by lenders to apply finance charges to credit cards is the average daily balance including new purchases method.

A debt safety ratio of 25% might be a signal of financial trouble ahead.

The interest rates on credit cards are lower than any other form of credit.

It is recommended that you never give your credit card account number over the phone to people or organizations who call you.

Anna uses her credit card regularly,but she pays the total balance monthly.Anna should look for a credit account with:

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

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

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

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

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