Question 1

An overdraft protection line of credit allows one to routinely bounce checks with little or no adverse consequences.

Accepted Answer

A) True 
 B)False

Question 2

Rebate credit cards work best for those who use the rebates,charge a lot,and do not carry high monthly balances.

Accepted Answer

A) True 
 B)False

Question 3

Credit bureaus:

Accepted Answer

A)  will send you a free copy of your credit report whenever you ask. 
B)  may charge up to $20 for a copy of your credit report. 
C)  are required to correct errors only when a creditor asks them to. 
D)  all of these 
E)  none of these 
A)  will send you a free copy of your credit report whenever you ask. 
B)  may charge up to $20 for a copy of your credit report. 
C)  are required to correct errors only when a creditor asks them to. 
D)  all of these 
E)  none of these

Question 4

The quality of your credit rating is maintained by:

Accepted Answer

A)  only using cash to make purchases. 
B)  keeping high debt safety ratio. 
C)  seldom questioning billing errors. 
D)  using multiple credit cards. 
E)  meeting credit obligations as contracts require. 
A)  only using cash to make purchases. 
B)  keeping high debt safety ratio. 
C)  seldom questioning billing errors. 
D)  using multiple credit cards. 
E)  meeting credit obligations as contracts require.

Question 5

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 6

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

Accepted Answer

A) True 
 B)False

Question 7

A retail credit card can be accessed by writing checks against demand deposit.

Accepted Answer

A) True 
 B)False

Question 8

Families who have a steady source of income and who want to retain their assets above the protected amount would selectChapter 13 rather thanChapter 7 of the bankruptcy code.

Accepted Answer

A) True 
 B)False

Question 9

With open account credit,one can often avoid interest charges if:

Accepted Answer

A)  the account balance is paid in full every month. 
B)  at least half the account balance is paid every month. 
C)  the minimum payment is made every month. 
D)  the account is a revolving credit account. 
E)  the balance is below the credit limit. 
A)  the account balance is paid in full every month. 
B)  at least half the account balance is paid every month. 
C)  the minimum payment is made every month. 
D)  the account is a revolving credit account. 
E)  the balance is below the credit limit.

Question 10

Discount store and online sales have dropped in the aftermath of the recession.

Accepted Answer

A) True 
 B)False

Question 11

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?

Accepted Answer

The maximum debt safety ratio

Question 12

Finance charges are computed only on the unpaid balance from previous months' purchases.

Accepted Answer

A) True 
 B)False

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.
-A proper use of open account credit would be to buy [food | washing machine].

Accepted Answer

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

Question 14

Revolving credit lines are often accessed by writing checks.

Accepted Answer

A) True 
 B)False

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.
-The "preferred" way of stealing from consumers now is [through your credit card | stealing your car].

Accepted Answer

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

Question 16

Indebtedness relative to household income decreased due to all but:

Accepted Answer

A)  home sales. 
B)  home foreclosures. 
C)  fewer consumer loans. 
D)  consumer loan defaults. 
E)  surge in home mortgage refinancing. 
A)  home sales. 
B)  home foreclosures. 
C)  fewer consumer loans. 
D)  consumer loan defaults. 
E)  surge in home mortgage refinancing.

Question 17

Which of the following is 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 
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

Question 18

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 19

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

Accepted Answer

A) True 
 B)False

Question 20

You have a $926 balance on your credit card account.The minimum payment on your account is 2 percent of the latest balance or $20,whichever is greater.What will be the minimum payment this month?

Accepted Answer

$926 ×0.02 = $18.52

An overdraft protection line of credit allows one to routinely bounce checks with little or no adverse consequences.

Rebate credit cards work best for those who use the rebates,charge a lot,and do not carry high monthly balances.

Credit bureaus:

The quality of your credit rating is maintained by:

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

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

A retail credit card can be accessed by writing checks against demand deposit.

Families who have a steady source of income and who want to retain their assets above the protected amount would selectChapter 13 rather thanChapter 7 of the bankruptcy code.

With open account credit,one can often avoid interest charges if:

Discount store and online sales have dropped in the aftermath of the recession.

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?

Finance charges are computed only on the unpaid balance from previous months' purchases.

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 proper use of open account credit would be to buy [food | washing machine].

Revolving credit lines are often accessed by writing checks.

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 "preferred" way of stealing from consumers now is [through your credit card | stealing your car].

Indebtedness relative to household income decreased due to all but:

Which of the following is true regarding credit scoring systems?

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.

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

You have a $926 balance on your credit card account.The minimum payment on your account is 2 percent of the latest balance or $20,whichever is greater.What will be the minimum payment this month?

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

An overdraft protection line of credit allows one to routinely bounce checks with little or no adverse consequences.

Rebate credit cards work best for those who use the rebates,charge a lot,and do not carry high monthly balances.

Credit bureaus:

The quality of your credit rating is maintained by:

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

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

A retail credit card can be accessed by writing checks against demand deposit.

Families who have a steady source of income and who want to retain their assets above the protected amount would selectChapter 13 rather thanChapter 7 of the bankruptcy code.

With open account credit,one can often avoid interest charges if:

Discount store and online sales have dropped in the aftermath of the recession.

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?

Finance charges are computed only on the unpaid balance from previous months' purchases.

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 proper use of open account credit would be to buy [food | washing machine].

Revolving credit lines are often accessed by writing checks.

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 "preferred" way of stealing from consumers now is [through your credit card | stealing your car].

Indebtedness relative to household income decreased due to all but:

Which of the following is true regarding credit scoring systems?

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.

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

You have a $926 balance on your credit card account.The minimum payment on your account is 2 percent of the latest balance or $20,whichever is greater.What will be the minimum payment this month?

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