Question 1

Open account credit is characterized by:

Accepted Answer

A)  no credit limit. 
B)  a monthly credit statement. 
C)  annual billing. 
D)  minimum balance requirements. 
E)  none of the above 
A)  no credit limit. 
B)  a monthly credit statement. 
C)  annual billing. 
D)  minimum balance requirements. 
E)  none of the above

Question 2

Most of the reduction in household indebtedness is due to:

Accepted Answer

A)  fewer new loans. 
B)  loan defaults. 
C)  accelerated payment schedules. 
D)  loan workout agreements. 
E)  c and d 
A)  fewer new loans. 
B)  loan defaults. 
C)  accelerated payment schedules. 
D)  loan workout agreements. 
E)  c and d

Question 3

One can lose his home if he does not repay his home equity line of credit.

Accepted Answer

A) True 
 B)False

Question 4

Home equity loans are one of the least expensive forms of consumer credit.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

Sheldon has a home valued at $108,000 and an outstanding mortgage of $70,000.If his lender is willing to provide a home equity loan of up to 80% of market value,how much could Sheldon borrow using a home equity loan?

Accepted Answer

A)  $86,400 
B)  $80,000 
C)  $38,000 
D)  $30,400 
E)  $16,400 
A)  $86,400 
B)  $80,000 
C)  $38,000 
D)  $30,400 
E)  $16,400

Question 7

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.
-Most bank credit cards have interest rates that will [remain the same as long as you hold the card | be adjusted as interest rates in general rise and fall].

Accepted Answer

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

Question 8

It is not a good idea to use credit to:

Accepted Answer

A)  buy a home. 
B)  live beyond one's means. 
C)  spread payments within a budget. 
D)  purchase expensive items. 
E)  replace a check for small items. 
A)  buy a home. 
B)  live beyond one's means. 
C)  spread payments within a budget. 
D)  purchase expensive items. 
E)  replace a check for small items.

Question 9

_____ are not a type of open account credit.

Accepted Answer

A)  Retail charge cards 
B)  30-day charge accounts 
C)  Student credit cards 
D)  Bank credit cards 
E)  Bank debit cards 
A)  Retail charge cards 
B)  30-day charge accounts 
C)  Student credit cards 
D)  Bank credit cards 
E)  Bank debit cards

Question 10

To establish creditworthiness you probably should first:

Accepted Answer

A)  open savings and checking accounts. 
B)  use credit extensively. 
C)  arrange a small loan. 
D)  pay cash for all purchases. 
E)  arrange a large loan from close relatives. 
A)  open savings and checking accounts. 
B)  use credit extensively. 
C)  arrange a small loan. 
D)  pay cash for all purchases. 
E)  arrange a large loan from close relatives.

Question 11

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 Wage Earner Plan | Straight Bankruptcy] involves some type of debt restructuring.

Accepted Answer

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

Question 12

When comparing credit cards,a person who pays his total outstanding balance off monthly would want a card with:

Accepted Answer

A)  a low required minimum payment percentage. 
B)  a low interest rate. 
C)  an adequate grace period. 
D)  no annual fee. 
E)  c and d 
A)  a low required minimum payment percentage. 
B)  a low interest rate. 
C)  an adequate grace period. 
D)  no annual fee. 
E)  c and d

Question 13

It is safe,and often required,to give your Social Security number as a form of identification when using a credit card.

Accepted Answer

A) True 
 B)False

Question 14

The following information provides insight to a lender about the applicant's creditworthiness except:

Accepted Answer

A)  personal/family matters. 
B)  housing. 
C)  employment. 
D)  income. 
E)  all of the above provide insight 
A)  personal/family matters. 
B)  housing. 
C)  employment. 
D)  income. 
E)  all of the above provide insight

Question 15

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 16

When canceling a credit card,you should cut up the card and _____ that you are canceling your account.

Accepted Answer

A)  inform the issuer in writing 
B)  call the issuer and tell them 
C)  inform the credit bureau in writing 
D)  call the credit bureau and tell them 
E)  all of the above 
A)  inform the issuer in writing 
B)  call the issuer and tell them 
C)  inform the credit bureau in writing 
D)  call the credit bureau and tell them 
E)  all of the above

Question 17

Russ and Lois have a home valued at $96,000 and an outstanding mortgage of $60,000.If their lender is willing to provide a home equity loan of up to 75% of market value,how much could they borrow using a home equity loan?

Accepted Answer

A)  $0 
B)  $12,000 
C)  $27,000 
D)  $28,000 
E)  $36,000 
A)  $0 
B)  $12,000 
C)  $27,000 
D)  $28,000 
E)  $36,000

Question 18

Being late on credit payments will put your account into a "late status" until you make up the missed payment.

Accepted Answer

A) True 
 B)False

Question 19

The intent of a Wage Earner Plan is to eliminate most of the debtor's obligations.

Accepted Answer

A) True 
 B)False

Question 20

The majority of persons filing bankruptcy fileChapter 7 of the bankruptcy code.

Accepted Answer

A) True 
 B)False

Open account credit is characterized by:

Most of the reduction in household indebtedness is due to:

One can lose his home if he does not repay his home equity line of credit.

Home equity loans are one of the least expensive forms of consumer credit.

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

Sheldon has a home valued at $108,000 and an outstanding mortgage of $70,000.If his lender is willing to provide a home equity loan of up to 80% of market value,how much could Sheldon borrow using a home equity loan?

It is not a good idea to use credit to:

_____ are not a type of open account credit.

To establish creditworthiness you probably should first:

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 Wage Earner Plan | Straight Bankruptcy] involves some type of debt restructuring.

When comparing credit cards,a person who pays his total outstanding balance off monthly would want a card with:

It is safe,and often required,to give your Social Security number as a form of identification when using a credit card.

The following information provides insight to a lender about the applicant's creditworthiness except:

When canceling a credit card,you should cut up the card and _____ that you are canceling your account.

Russ and Lois have a home valued at $96,000 and an outstanding mortgage of $60,000.If their lender is willing to provide a home equity loan of up to 75% of market value,how much could they borrow using a home equity loan?

Being late on credit payments will put your account into a "late status" until you make up the missed payment.

The intent of a Wage Earner Plan is to eliminate most of the debtor's obligations.

The majority of persons filing bankruptcy fileChapter 7 of the bankruptcy code.

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

Open account credit is characterized by:

Most of the reduction in household indebtedness is due to:

One can lose his home if he does not repay his home equity line of credit.

Home equity loans are one of the least expensive forms of consumer credit.

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

Sheldon has a home valued at $108,000 and an outstanding mortgage of $70,000.If his lender is willing to provide a home equity loan of up to 80% of market value,how much could Sheldon borrow using a home equity loan?

It is not a good idea to use credit to:

_____ are not a type of open account credit.

To establish creditworthiness you probably should first:

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 Wage Earner Plan | Straight Bankruptcy] involves some type of debt restructuring.

When comparing credit cards,a person who pays his total outstanding balance off monthly would want a card with:

It is safe,and often required,to give your Social Security number as a form of identification when using a credit card.

The following information provides insight to a lender about the applicant's creditworthiness except:

When canceling a credit card,you should cut up the card and _____ that you are canceling your account.

Russ and Lois have a home valued at $96,000 and an outstanding mortgage of $60,000.If their lender is willing to provide a home equity loan of up to 75% of market value,how much could they borrow using a home equity loan?

Being late on credit payments will put your account into a "late status" until you make up the missed payment.

The intent of a Wage Earner Plan is to eliminate most of the debtor's obligations.

The majority of persons filing bankruptcy fileChapter 7 of the bankruptcy code.

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