Question 1

Credit bureaus obtain data from which of the following?

Accepted Answer

A)  Banks
B)  Finance companies
C)  Merchants
D)  Credit card companies
E)  All of theseF) B) and E)
G) A) and E)

Question 2

A credit arrangement that has no extra costs and no specific repayment plan is called:

Accepted Answer

A)  installment sales credit.
B)  single lump-sum credit.
C)  line of credit.
D)  incidental credit.
E)  revolving check credit.F) B) and E)
G) C) and D)

Question 3

Which federal credit law sets the procedure for promptly correcting billing mistakes?

Accepted Answer

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

Question 4

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

Accepted Answer

A)  Borrowing for an emergency stay in a hospital
B)  Borrowing to purchase a car so that a homemaker can return to the workforce
C)  Borrowing to buy a printer for your home office now because you know it will be twice as expensive later
D)  Borrowing to pay for your expensive dinner and movie every week
E)  Borrowing to pay for a college educationF) A) and D)
G) None of the above

Question 5

Which federal consumer credit law limits a cardholder's liability for unauthorized use of a card to $50?

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 ActF) A) and D)
G) A) and E)

Question 6

A home equity loan is usually set up as a revolving line of credit,typically with a fixed interest rate.

Accepted Answer

A) True 
 B)False

Question 7

The accuracy of credit reports has worsened recently.

Accepted Answer

A) True 
 B)False

Question 8

Consumer credit is based on trust in people's ability and willingness to pay bills when due.

Accepted Answer

A) True 
 B)False

Question 9

If you think you have been discriminated against by consumer reporting agencies or creditors,you should file a complaint with which government agency?

Accepted Answer

A)  Federal Reserve Board
B)  Federal Deposit Insurance Corporation
C)  Consumer Financial Protection Bureau
D)  Office of the Comptroller of the Currency
E)  National Credit Union AdministrationF) None of the above
G) A) and B)

Question 10

Brian Porter's net worth is $120,000,excluding his home.His liabilities of $54,000 include all of his credit card balances and the balance due on his auto loan and home improvement loan.His townhouse has a market value of $220,000 and he owes $190,000 to his mortgage company.What is Brian's debt-to-equity ratio?

Accepted Answer

A)  0.65
B)  0.74
C)  0.45
D)  0.35
E)  0.28F) A) and D)
G) A) and C)

Question 11

Which of the following is not true of mobile commerce?

Accepted Answer

A)  Some smart phones are equipped to make purchases.
B)  Consumers have shown increased interest in this concept.
C)  A credit card company may provide a sticker that attaches to the phone rather than a physical credit card.
D)  Apps can be used to quickly pay with a mobile phone.
E)  Little interest in this concept has been shown by retailers and finance companies.F) A) and B)
G) B) and E)

Question 12

Karen Price is 55 years old,divorced,and has worked at her current job for five years.She is interested in looking at her credit report.Which of the following pieces of information should she find in this report?

Accepted Answer

A)  The address of the house she lived in as a child
B)  A loan for furniture she paid off 12 years ago
C)  The outstanding balance on the Visa card she has today
D)  The names and addresses of her grown children
E)  The fact that she was late paying her electric bill 8 years agoF) A) and C)
G) A) and E)

Question 13

If you have incorrect information in your credit file:

Accepted Answer

A)  you can't really do much about it.
B)  you have no legal remedies.
C)  credit bureaus are not required to change it.
D)  there are legal remedies available to you.
E)  don't worry because it will not affect your ability to borrow money.F) A) and E)
G) B) and C)

Question 14

One example of closed-end credit is:

Accepted Answer

A)  a credit card issued by a department store.
B)  a credit card issued by VISA or MasterCard.
C)  the use of overdraft protection at a bank.
D)  the use of a Travel and Entertainment card.
E)  a mortgage loan.F) C) and E)
G) None of the above

Question 15

What would be the maximum limit for an individual's debt-to-equity ratio,excluding the home mortgage?

Accepted Answer

A)  0.50
B)  0.33
C)  1.00
D)  2.00
E)  2.25F) A) and D)
G) B) and D)

Question 16

The smaller the debt-to-equity ratio,the riskier the situation is for lenders and borrowers.

Accepted Answer

A) True 
 B)False

Question 17

Which one of the following agencies maintains data about the amount and terms of your credit and your paying habits?

Accepted Answer

A)  Federal Reserve Bank in your district
B)  Consumer sentinel network
C)  Federal Trade Commission
D)  Public assistance office
E)  Credit bureauF) A) and B)
G) A) and D)

Question 18

Jennifer Gardner purchases a sofa,love seat and reclining chair for her family room.She made a down payment and will make payments of $65 per month for the next twenty-four months.What type of credit did Jennifer use?

Accepted Answer

A)  Installment sales credit
B)  Installment cash credit
C)  Single lump-sum credit
D)  Revolving check credit
E)  Open-end creditF) None of the above
G) A) and D)

Question 19

What should you do when you shop online using your credit card?

Accepted Answer

A)  Delete immediately all records of your transactions
B)  Use a secure browser
C)  Give out your private information to anyone who requests it online
D)  Make sure to open and download all files sent you by strangers
E)  Give your password to anyone who requests itF) A) and D)
G) A) and C)

Question 20

How can you protect yourself against credit card fraud?

Accepted Answer

Here are the ways to protect yourself fr...

Exam 6: Introduction to Consumer Credit

One example of closed-end credit is:

Correct Answer
verified

Which one of the following agencies maintains data about the amount and terms of your credit and your paying habits?

Correct Answer
verified

Which federal credit law sets the procedure for promptly correcting billing mistakes?

Correct Answer
verified

The accuracy of credit reports has worsened recently.

Correct Answer
verified

If you think you have been discriminated against by consumer reporting agencies or creditors,you should file a complaint with which government agency?

Correct Answer
verified

If you have incorrect information in your credit file:

Correct Answer
verified

Which federal consumer credit law limits a cardholder's liability for unauthorized use of a card to $50?

Correct Answer
verified

The smaller the debt-to-equity ratio,the riskier the situation is for lenders and borrowers.

Correct Answer
verified

Jennifer Gardner purchases a sofa,love seat and reclining chair for her family room.She made a down payment and will make payments of $65 per month for the next twenty-four months.What type of credit did Jennifer use?

Correct Answer
verified

Consumer credit is based on trust in people's ability and willingness to pay bills when due.

Correct Answer
verified

What should you do when you shop online using your credit card?

Correct Answer
verified

Credit bureaus obtain data from which of the following?

Correct Answer
verified

Which of the following is not true of mobile commerce?

Correct Answer
verified

How can you protect yourself against credit card fraud?

Correct Answer
verified
Here are the ways to protect yourself fr...
View Answer

Karen Price is 55 years old,divorced,and has worked at her current job for five years.She is interested in looking at her credit report.Which of the following pieces of information should she find in this report?

Correct Answer
verified

A home equity loan is usually set up as a revolving line of credit,typically with a fixed interest rate.

Correct Answer
verified

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

Correct Answer
verified

A credit arrangement that has no extra costs and no specific repayment plan is called:

Correct Answer
verified

Correct Answer
verified

What would be the maximum limit for an individual's debt-to-equity ratio,excluding the home mortgage?

Correct Answer
verified

Exam 6: Introduction to Consumer Credit

One example of closed-end credit is:

Correct AnswerverifiedShow Answer

Which one of the following agencies maintains data about the amount and terms of your credit and your paying habits?

Correct AnswerverifiedShow Answer

Which federal credit law sets the procedure for promptly correcting billing mistakes?

Correct AnswerverifiedShow Answer

The accuracy of credit reports has worsened recently.

Correct AnswerverifiedShow Answer

If you think you have been discriminated against by consumer reporting agencies or creditors,you should file a complaint with which government agency?

Correct AnswerverifiedShow Answer

If you have incorrect information in your credit file:

Correct AnswerverifiedShow Answer

Which federal consumer credit law limits a cardholder's liability for unauthorized use of a card to $50?

Correct AnswerverifiedShow Answer

The smaller the debt-to-equity ratio,the riskier the situation is for lenders and borrowers.

Correct AnswerverifiedShow Answer

Jennifer Gardner purchases a sofa,love seat and reclining chair for her family room.She made a down payment and will make payments of $65 per month for the next twenty-four months.What type of credit did Jennifer use?

Correct AnswerverifiedShow Answer

Consumer credit is based on trust in people's ability and willingness to pay bills when due.

Correct AnswerverifiedShow Answer

What should you do when you shop online using your credit card?

Correct AnswerverifiedShow Answer

Credit bureaus obtain data from which of the following?

Correct AnswerverifiedShow Answer

Which of the following is not true of mobile commerce?

Correct AnswerverifiedShow Answer

How can you protect yourself against credit card fraud?

Correct AnswerverifiedHere are the ways to protect yourself fr...View AnswerShow Answer

Karen Price is 55 years old,divorced,and has worked at her current job for five years.She is interested in looking at her credit report.Which of the following pieces of information should she find in this report?

Correct AnswerverifiedShow Answer

A home equity loan is usually set up as a revolving line of credit,typically with a fixed interest rate.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A credit arrangement that has no extra costs and no specific repayment plan is called:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

What would be the maximum limit for an individual's debt-to-equity ratio,excluding the home mortgage?

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Here are the ways to protect yourself fr...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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