Question 1

"Shopaholics" and young adults are most vulnerable to misusing credit.

Accepted Answer

A) True 
 B)False

Question 2

Today,Michael purchased a laptop computer from a retail outlet.He has agreed to pay for this purchase in full 30 days from today.This is an example of:

Accepted Answer

A) open-end credit. 
B) a line of credit. 
C) single lump-sum credit. 
D) installment cash credit. 
E) incidental credit.

Question 3

Which consumer credit law prohibits creditors from requiring women to reapply for credit upon a change in marital status?

Accepted Answer

A) Fair Debt Collection Practices Act 
B) Fair Credit Billing Act 
C) Equal Credit Opportunity Act 
D) Fair Credit Reporting Act 
E) Truth in Lending Act

Question 4

Installment cash credit is a:

Accepted Answer

A) loan that must be repaid in total on a specified day. 
B) direct loan of money for personal purposes. 
C) loan that allows the consumer to receive merchandise,such as a refrigerator. 
D) down payment made on a purchase. 
E) synonym for single lump-sum credit.

Question 5

It is safer to use credit,since charge accounts and credit cards let you shop and travel without carrying large amounts of cash.

Accepted Answer

A) True 
 B)False

Question 6

College students are not a prime target for credit card issuers.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is most likely not a valid reason for using credit?

Accepted Answer

A) borrowing for a stay in a hospital because of appendicitis. 
B) borrowing to purchase a car so that you can go to work full-time. 
C) borrowing to buy a printer for your home office now because you know it will be twice as expensive in two years. 
D) borrowing to pay for your expensive dinner and movie every week. 
E) all of the above are valid reasons for using credit.

Question 8

What can be included in your credit report?

Accepted Answer

A) race 
B) nationality 
C) sex 
D) marital status 
E) religion

Question 9

If there is incorrect information in your credit file:

Accepted Answer

A) you should sue the credit bureau. 
B) the credit bureau has no power to change it. 
C) the credit bureau must reinvestigate and modify or remove inaccurate data. 
D) you must wait at least six months prior to launching an investigation. 
E) you have no means of correcting it.

Question 10

Which federal consumer credit law prohibits credit discrimination based on sex and marital status?

Accepted Answer

A) Truth in Lending Act 
B) Fair Credit Reporting Act 
C) Fair Credit Billing Act 
D) Equal Credit Opportunity Act 
E) Fair Debt Collection Practices Act

Exam 6: Introduction to Consumer Credit

"Shopaholics" and young adults are most vulnerable to misusing credit.

Today,Michael purchased a laptop computer from a retail outlet.He has agreed to pay for this purchase in full 30 days from today.This is an example of:

Which consumer credit law prohibits creditors from requiring women to reapply for credit upon a change in marital status?

Installment cash credit is a:

It is safer to use credit,since charge accounts and credit cards let you shop and travel without carrying large amounts of cash.

College students are not a prime target for credit card issuers.

Which of the following is most likely not a valid reason for using credit?

What can be included in your credit report?

If there is incorrect information in your credit file:

Which federal consumer credit law prohibits credit discrimination based on sex and marital status?