Question 1

Your credit score may affect how much you pay for health insurance.

Accepted Answer

A) True 
 B)False

Question 2

Describe the three primary methods used to determine interest charges on an unpaid credit card balance.

Accepted Answer

Average daily balance method: Your avera

Question 3

Credit cards are a form of ________ credit.

Accepted Answer

A) close ended 
B) revolving 
C) installment 
D) service 
A) close ended 
B) revolving 
C) installment 
D) service

Question 4

By law you have certain rights in connection with the credit bureau.They are

Accepted Answer

A) the right to view your personal credit report. 
B) the right to point out errors found in your file. 
C) the right to request the credit bureau to correct mistakes in your file. 
D) the right to file a statement presenting your view of a disputed issue. 
E) all of the above. 
A) the right to view your personal credit report. 
B) the right to point out errors found in your file. 
C) the right to request the credit bureau to correct mistakes in your file. 
D) the right to file a statement presenting your view of a disputed issue. 
E) all of the above.

Question 5

For the convenience credit card user the interest rate is

Accepted Answer

A) irresistible. 
B) irrelevant. 
C) irregular. 
D) intimidating. 
A) irresistible. 
B) irrelevant. 
C) irregular. 
D) intimidating.

Question 6

One of the unpleasant secrets of using your credit card for a cash advance is that the APR on the cash advance is typically lower than the APR for normal purchases.

Accepted Answer

A) True 
 B)False

Question 7

What four steps should you take if you think your identity has been stolen?

Accepted Answer

STEP 1: Contact the fraud department of

Question 8

Sometimes retailers will give you up to a 5% discount if you pay cash for their products instead of using your credit card.Why?

Accepted Answer

A) It is just good customer service,especially for repeat customers. 
B) They are getting close to their monthly charge limit and don't want to go over it. 
C) They are saving on the merchants discount fee so they pass the savings on to you. 
D) Its much less paper work to process cash transactions. 
A) It is just good customer service,especially for repeat customers. 
B) They are getting close to their monthly charge limit and don't want to go over it. 
C) They are saving on the merchants discount fee so they pass the savings on to you. 
D) Its much less paper work to process cash transactions.

Question 9

An Affinity card

Accepted Answer

A) has the ability to be "liked" on social media. 
B) is issued in conjunction with specific organization or charity. 
C) is the card you use the most. 
D) is issued by Affinity Bank and Trust. 
A) has the ability to be "liked" on social media. 
B) is issued in conjunction with specific organization or charity. 
C) is the card you use the most. 
D) is issued by Affinity Bank and Trust.

Question 10

The choice of a credit card is a matter of personal credit card philosophy.If you are a credit user,the most important decision factor is the card's

Accepted Answer

A) length of grace period. 
B) annual fee. 
C) APR on the unpaid balance. 
D) minimum payment. 
E) late payment fee. 
A) length of grace period. 
B) annual fee. 
C) APR on the unpaid balance. 
D) minimum payment. 
E) late payment fee.

Question 11

One of the unpleasant secrets about using your credit card for a cash advance is that

Accepted Answer

A) there is usually a 6 to 8 percent upfront fee on the amount. 
B) the APR on the cash advance is typically lower than the APR for normal purchases. 
C) payments do not apply to cash advance balances unless the balance for regular credit purchases is zero. 
D) All but B apply to cash advances. 
A) there is usually a 6 to 8 percent upfront fee on the amount. 
B) the APR on the cash advance is typically lower than the APR for normal purchases. 
C) payments do not apply to cash advance balances unless the balance for regular credit purchases is zero. 
D) All but B apply to cash advances.

Question 12

The Consumer Financial Protection Bureau was created with the oversight authority necessary to ensure that

Accepted Answer

A) consumer financial markets work. 
B) the prices and risks for credit products and other consumer financial services are easy to understand. 
C) the prices and risks for mortgages,credit cards,and other kinds of financial products and services are clear. 
D) all of the above. 
A) consumer financial markets work. 
B) the prices and risks for credit products and other consumer financial services are easy to understand. 
C) the prices and risks for mortgages,credit cards,and other kinds of financial products and services are clear. 
D) all of the above.

Question 13

It is against the law for your potential employer to use your credit score for employment considerations.

Accepted Answer

A) True 
 B)False

Question 14

Which method sums the outstanding balances owed each day during the billing period and divides by the number of days in the period?

Accepted Answer

A) Average daily balance 
B) Previous balance 
C) Adjusted balance 
D) Balance calculation method 
E) Simple interest 
A) Average daily balance 
B) Previous balance 
C) Adjusted balance 
D) Balance calculation method 
E) Simple interest

Question 15

According to the Keown book,the national average FICO score is around

Accepted Answer

A) 650. 
B) 700. 
C) 759. 
D) 777. 
A) 650. 
B) 700. 
C) 759. 
D) 777.

Question 16

Why is it important for young people to establish a good credit history as soon as possible?

Accepted Answer

People that have not established any cre

Question 17

Most likely,Jerome is

Accepted Answer

A) unaware of how much of his payments go toward interest. 
B) not getting the benefits of a grace period. 
C) obligating his future income. 
D) All of the above are correct. 
A) unaware of how much of his payments go toward interest. 
B) not getting the benefits of a grace period. 
C) obligating his future income. 
D) All of the above are correct.

Question 18

What will be Monty's minimum payment due?

Accepted Answer

A) $90 
B) $20 
C) $240 
D) $1,080 
E) None of the above 
A) $90 
B) $20 
C) $240 
D) $1,080 
E) None of the above

Question 19

What can you do if you cannot pay your credit card bills?

Accepted Answer

Adjust your budget to allow more money t

Question 20

The CARD Act of 2009 toned down the actions of credit card issuers by

Accepted Answer

A) banning the issuance of credit cards to persons under 18,unless the borrower can show proof that he or she can repay the credit card loans independently. 
B) banning credit card issuers from locating themselves "near campus" (defined as within 50 feet). 
C) banning the issuance of credit cards to persons under 18,unless someone over 25 co-signs on the account. 
D) banning offers of freebies such as free pizza and T-shirts. 
A) banning the issuance of credit cards to persons under 18,unless the borrower can show proof that he or she can repay the credit card loans independently. 
B) banning credit card issuers from locating themselves "near campus" (defined as within 50 feet). 
C) banning the issuance of credit cards to persons under 18,unless someone over 25 co-signs on the account. 
D) banning offers of freebies such as free pizza and T-shirts.

Your credit score may affect how much you pay for health insurance.

Describe the three primary methods used to determine interest charges on an unpaid credit card balance.

Credit cards are a form of ________ credit.

By law you have certain rights in connection with the credit bureau.They are

For the convenience credit card user the interest rate is

One of the unpleasant secrets of using your credit card for a cash advance is that the APR on the cash advance is typically lower than the APR for normal purchases.

What four steps should you take if you think your identity has been stolen?

Sometimes retailers will give you up to a 5% discount if you pay cash for their products instead of using your credit card.Why?

An Affinity card

The choice of a credit card is a matter of personal credit card philosophy.If you are a credit user,the most important decision factor is the card's

One of the unpleasant secrets about using your credit card for a cash advance is that

The Consumer Financial Protection Bureau was created with the oversight authority necessary to ensure that

It is against the law for your potential employer to use your credit score for employment considerations.

Which method sums the outstanding balances owed each day during the billing period and divides by the number of days in the period?

According to the Keown book,the national average FICO score is around

Why is it important for young people to establish a good credit history as soon as possible?

Most likely,Jerome is

What will be Monty's minimum payment due?

What can you do if you cannot pay your credit card bills?

The CARD Act of 2009 toned down the actions of credit card issuers by

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

Your credit score may affect how much you pay for health insurance.

Describe the three primary methods used to determine interest charges on an unpaid credit card balance.

Credit cards are a form of ________ credit.

By law you have certain rights in connection with the credit bureau.They are

For the convenience credit card user the interest rate is

One of the unpleasant secrets of using your credit card for a cash advance is that the APR on the cash advance is typically lower than the APR for normal purchases.

What four steps should you take if you think your identity has been stolen?

Sometimes retailers will give you up to a 5% discount if you pay cash for their products instead of using your credit card.Why?

An Affinity card

The choice of a credit card is a matter of personal credit card philosophy.If you are a credit user,the most important decision factor is the card's

One of the unpleasant secrets about using your credit card for a cash advance is that

The Consumer Financial Protection Bureau was created with the oversight authority necessary to ensure that

It is against the law for your potential employer to use your credit score for employment considerations.

Which method sums the outstanding balances owed each day during the billing period and divides by the number of days in the period?

According to the Keown book,the national average FICO score is around

Why is it important for young people to establish a good credit history as soon as possible?

Most likely,Jerome is

What will be Monty's minimum payment due?

What can you do if you cannot pay your credit card bills?

The CARD Act of 2009 toned down the actions of credit card issuers by

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