Question 1

Credit card companies send out a whopping 6 billion credit card offers annually-roughly 60 offers per U.S.household!

Accepted Answer

A) True 
 B)False

Question 2

The Fair and Accurate Credit Transactions Act (FACT)allows everyone to a free copy of their credit report every year.Why is it a good idea to check your credit report every year?

Accepted Answer

A) To make sure that there are no errors on it 
B) To make sure that someone has not stolen your identity 
C) To challenge any unauthorized entries 
D) All of the above are good reasons. 
A) To make sure that there are no errors on it 
B) To make sure that someone has not stolen your identity 
C) To challenge any unauthorized entries 
D) All of the above are good reasons.

Question 3

________% of Americans age 25-34 carry a balance on their credit cards.

Accepted Answer

A) 50 
B) 69 
C) 25 
D) 71 
A) 50 
B) 69 
C) 25 
D) 71

Question 4

The process of mathematically evaluating your creditworthiness to obtain credit is called

Accepted Answer

A) credit scoring. 
B) credit evaluation. 
C) credit references. 
D) credit history. 
E) credit statistics. 
A) credit scoring. 
B) credit evaluation. 
C) credit references. 
D) credit history. 
E) credit statistics.

Question 5

Jerome would be considered a

Accepted Answer

A) credit user. 
B) convenience user. 
C) combination credit and convenience user. 
D) T&E card user. 
A) credit user. 
B) convenience user. 
C) combination credit and convenience user. 
D) T&E card user.

Question 6

Using your credit card for a cash advance in an emergency is probably a good idea.Using cash advances for non-emergencies is a terrible idea.Explain the characteristics that make cash advances very dangerous.

Accepted Answer

For starters,it shows that you are not m

Question 7

Which of the following is the largest factor in determining credit?

Accepted Answer

A) Types of credit used 
B) Amount owed 
C) Payment history 
D) New Credit 
A) Types of credit used 
B) Amount owed 
C) Payment history 
D) New Credit

Question 8

Credit card insurance is usually unnecessary since your liability on credit card losses is limited by law to

Accepted Answer

A) $ 0. 
B) $50. 
C) $100. 
D) $500. 
A) $ 0. 
B) $50. 
C) $100. 
D) $500.

Question 9

For the average consumer there is usually a set limit on open or revolving credit accounts.

Accepted Answer

A) True 
 B)False

Question 10

What rights would a college friend of yours have whose credit card application was denied?

Accepted Answer

A) The right to view her credit report 
B) The right to have the file be accurate 
C) The right to point out errors in her file 
D) The right to request mistakes in the file be corrected 
E) All of the above are correct answers. 
A) The right to view her credit report 
B) The right to have the file be accurate 
C) The right to point out errors in her file 
D) The right to request mistakes in the file be corrected 
E) All of the above are correct answers.

Question 11

The lowest FICO a consumer can achieve is

Accepted Answer

A) 250. 
B) 300. 
C) 400. 
D) 505. 
A) 250. 
B) 300. 
C) 400. 
D) 505.

Question 12

Most grace periods are

Accepted Answer

A) 7-10 days. 
B) 21-25 days. 
C) 14-21 days. 
D) 30 days. 
A) 7-10 days. 
B) 21-25 days. 
C) 14-21 days. 
D) 30 days.

Question 13

Which of the following is NOT one of the five C's of credit?

Accepted Answer

A) Capacity 
B) Capital 
C) Credit 
D) Character 
A) Capacity 
B) Capital 
C) Credit 
D) Character

Question 14

Assuming the APR on your credit card is 24 percent and your average daily balance this month was $8,000,what will your interest or finance charges for the month be?

Accepted Answer

A) $1.92 
B) $240 
C) $192 
D) $160 
A) $1.92 
B) $240 
C) $192 
D) $160

Question 15

There is no cash advance fee when you use your credit card at an ATM machine.

Accepted Answer

A) True 
 B)False

Question 16

Credit scoring is

Accepted Answer

A) quite expensive for the lender. 
B) not a flawless method of determining creditworthiness. 
C) an inefficient but necessary process. 
D) all of the above. 
A) quite expensive for the lender. 
B) not a flawless method of determining creditworthiness. 
C) an inefficient but necessary process. 
D) all of the above.

Question 17

A convenience user of credit cards is someone who pays off the credit card balance each month.

Accepted Answer

A) True 
 B)False

Question 18

On October 1st Joe charged $900 to his credit card,on October 10th he charged another $1,300 to his credit card,and on October 15th he charged an additional $100.His credit card charges him an Annual Percentage Rate (APR)of 18% compounded monthly.Using the Average Daily Balance Method calculate Joe's finance charge for the month of October.

Accepted Answer

A) $7.12 
B) $28.16 
C) $212.36 
D) $523.14 
E) None of the above are correct answers. 
A) $7.12 
B) $28.16 
C) $212.36 
D) $523.14 
E) None of the above are correct answers.

Question 19

Consider the "Five Cs of Credit." The category that considers your current income level and current borrowing level is

Accepted Answer

A) collateral. 
B) capital. 
C) capacity. 
D) character. 
E) none of the above. 
A) collateral. 
B) capital. 
C) capacity. 
D) character. 
E) none of the above.

Question 20

Roxanne has always maintained an excellent credit rating over the years.She has an annual income of $23,000,has lived at her current residence three years,and has worked at the same job for eight years.Susan works in a clerical position,has two credit cards and maintains two bank accounts.Which one of the following items of evaluation would Roxanne score the highest on?

Accepted Answer

A) Employment history 
B) Annual income 
C) Length of residence 
D) All of the above are correct answers. 
A) Employment history 
B) Annual income 
C) Length of residence 
D) All of the above are correct answers.

Credit card companies send out a whopping 6 billion credit card offers annually-roughly 60 offers per U.S.household!

The Fair and Accurate Credit Transactions Act (FACT)allows everyone to a free copy of their credit report every year.Why is it a good idea to check your credit report every year?

________% of Americans age 25-34 carry a balance on their credit cards.

The process of mathematically evaluating your creditworthiness to obtain credit is called

Jerome would be considered a

Using your credit card for a cash advance in an emergency is probably a good idea.Using cash advances for non-emergencies is a terrible idea.Explain the characteristics that make cash advances very dangerous.

Which of the following is the largest factor in determining credit?

Credit card insurance is usually unnecessary since your liability on credit card losses is limited by law to

For the average consumer there is usually a set limit on open or revolving credit accounts.

What rights would a college friend of yours have whose credit card application was denied?

The lowest FICO a consumer can achieve is

Most grace periods are

Which of the following is NOT one of the five C's of credit?

Assuming the APR on your credit card is 24 percent and your average daily balance this month was $8,000,what will your interest or finance charges for the month be?

There is no cash advance fee when you use your credit card at an ATM machine.

Credit scoring is

A convenience user of credit cards is someone who pays off the credit card balance each month.

Consider the "Five Cs of Credit." The category that considers your current income level and current borrowing level is

The Financial Planning Process

Measuring Your Financial Health and Making a Plan

Understanding and Appreciating the Time Value of Money

Tax Planning and Strategies

Cash or Liquid Asset Management

Student and Consumer Loans: the Role of Planned Borrowing

The Home and Automobile Decision

Life and Health Insurance

Property and Liability Insurance

Investment Basics

Investing in Stocks

Investing in Bonds and Other Alternatives

Mutual Funds: an Easy Way to Diversify

Retirement Planning

Estate Planning: Saving Your Heirs Money and Headaches

Financial Life Eventsfitting the Pieces Together

Filters

Exam 6: Using Credit Cards: the Role of Open Credit

Credit card companies send out a whopping 6 billion credit card offers annually-roughly 60 offers per U.S.household!

The Fair and Accurate Credit Transactions Act (FACT)allows everyone to a free copy of their credit report every year.Why is it a good idea to check your credit report every year?

________% of Americans age 25-34 carry a balance on their credit cards.

The process of mathematically evaluating your creditworthiness to obtain credit is called

Jerome would be considered a

Using your credit card for a cash advance in an emergency is probably a good idea.Using cash advances for non-emergencies is a terrible idea.Explain the characteristics that make cash advances very dangerous.

Which of the following is the largest factor in determining credit?

Credit card insurance is usually unnecessary since your liability on credit card losses is limited by law to

For the average consumer there is usually a set limit on open or revolving credit accounts.

What rights would a college friend of yours have whose credit card application was denied?

The lowest FICO a consumer can achieve is

Most grace periods are

Which of the following is NOT one of the five C's of credit?

Assuming the APR on your credit card is 24 percent and your average daily balance this month was $8,000,what will your interest or finance charges for the month be?

There is no cash advance fee when you use your credit card at an ATM machine.

Credit scoring is

A convenience user of credit cards is someone who pays off the credit card balance each month.

Consider the "Five Cs of Credit." The category that considers your current income level and current borrowing level is

The Financial Planning Process

Measuring Your Financial Health and Making a Plan

Understanding and Appreciating the Time Value of Money

Tax Planning and Strategies

Cash or Liquid Asset Management

Student and Consumer Loans: the Role of Planned Borrowing

The Home and Automobile Decision

Life and Health Insurance

Property and Liability Insurance

Investment Basics

Investing in Stocks

Investing in Bonds and Other Alternatives

Mutual Funds: an Easy Way to Diversify

Retirement Planning

Estate Planning: Saving Your Heirs Money and Headaches

Financial Life Eventsfitting the Pieces Together

Filters