Question 1

If you are a woman, a creditor must

Accepted Answer

A)  require a spouse to cosign a loan.
B)  ask about your birth control practices or family plans.
C)  consider whether you have a telephone listing in your own home.
D)  refuse individual credit in your own name.
E)  consider income from your part-time employment.F) B) and C)
G) A) and C)

Question 2

The 25-to 44-age group currently represents about 30 percent of the population but holds nearly ____________ percent of the debt outstanding.

Accepted Answer

A)  80
B)  70
C)  60
D)  50
E)  40F) A) and E)
G) B) and C)

Question 3

Interest is a periodic charge for the use of credit, or other finance charges.

Accepted Answer

A) True 
 B)False

Question 4

Your credit report may be issued only if this occurs with your consent.

Accepted Answer

A) True 
 B)False

Question 5

What is not a typical credit application question?

Accepted Answer

A)  Marital status
B)  Social insurance number
C)  Age
D)  Income
E)  Number of dependents and their agesF) B) and D)
G) B) and C)

Question 6

Financing from car dealers in affiliation with financial institutions is called factory financing.

Accepted Answer

A) True 
 B)False

Question 7

In 2016 what type of financial institution held the most consumer credit, excluding mortgages?

Accepted Answer

A)  Trust companies
B)  Credit unions
C)  Life insurance companies
D)  Chartered banks
E)  Special purpose corporationsF) C) and E)
G) A) and C)

Question 8

If you think that your bill is wrong, you should first

Accepted Answer

A)  contact the local credit bureau and inform it of the billing error.
B)  complain to the Better Business Bureau.
C)  contact your provincial consumer protection agency.
D)  notify the creditor of the error.
E)  contact your attorney to settle the matter.F) A) and D)
G) A) and E)

Question 9

Cobranding has become increasingly unpopular since General Motors launched its credit card in 1992.

Accepted Answer

A) True 
 B)False

Question 10

If you think your bill is wrong, you must notify your creditor in writing within 15 days after the bill was mailed.

Accepted Answer

A) True 
 B)False

Question 11

When a creditor looks at the borrower's attitude toward credit obligations, which of the 5 Cs of credit is she analyzing?

Accepted Answer

A)  Capacity
B)  Capital
C)  Character
D)  Collateral
E)  ConditionsF) A) and C)
G) A) and B)

Question 12

Provincial legislation regarding consumer reporting agencies regulate the type of information that can appear in a credit report and protects the consumer's right not to suffer from false information.

Accepted Answer

A) True 
 B)False

Question 13

Another name for credit when loans are made on a continuous basis and borrower is billed periodically for at least partial payment is known as:

Accepted Answer

A)  a line of credit.
B)  convenience credit.
C)  revolving credit.
D)  installment credit.
E)  bank card credit.F) All of the above
G) C) and E)

Question 14

If your monthly net (after-tax)  income is $2,000, what should be your maximum amount spent on credit payments?

Accepted Answer

A)  $200
B)  $300
C)  $400
D)  $500
E)  $600F) A) and E)
G) B) and C)

Question 15

The use of credit indicates personal and financial instability.

Accepted Answer

A) True 
 B)False

Question 16

What can be included in your credit report?

Accepted Answer

A)  race
B)  nationality
C)  sex
D)  employer
E)  religionF) A) and B)
G) A) and E)

Question 17

FICO scores range between

Accepted Answer

A)  1-10
B)  1-100
C)  1-1,000
D)  300-900
E)  100-500F) B) and D)
G) A) and B)

Question 18

What would your credit rating be if your credit is too new to rate?

Accepted Answer

A)  R5
B)  R2
C)  R6
D)  R0
E)  R9F) A) and D)
G) A) and C)

Exam 5: Introduction to Consumer Credit

Provincial legislation regarding consumer reporting agencies regulate the type of information that can appear in a credit report and protects the consumer's right not to suffer from false information.

Correct Answer
verified

The use of credit indicates personal and financial instability.

Correct Answer
verified

If you are a woman, a creditor must

Correct Answer
verified

Interest is a periodic charge for the use of credit, or other finance charges.

Correct Answer
verified

The 25-to 44-age group currently represents about 30 percent of the population but holds nearly ____________ percent of the debt outstanding.

Correct Answer
verified

If you think your bill is wrong, you must notify your creditor in writing within 15 days after the bill was mailed.

Correct Answer
verified

FICO scores range between

Correct Answer
verified

Another name for credit when loans are made on a continuous basis and borrower is billed periodically for at least partial payment is known as:

Correct Answer
verified

When a creditor looks at the borrower's attitude toward credit obligations, which of the 5 Cs of credit is she analyzing?

Correct Answer
verified

Financing from car dealers in affiliation with financial institutions is called factory financing.

Correct Answer
verified

What can be included in your credit report?

Correct Answer
verified

What would your credit rating be if your credit is too new to rate?

Correct Answer
verified

Cobranding has become increasingly unpopular since General Motors launched its credit card in 1992.

Correct Answer
verified

If you think that your bill is wrong, you should first

Correct Answer
verified

In 2016 what type of financial institution held the most consumer credit, excluding mortgages?

Correct Answer
verified

If your monthly net (after-tax) income is $2,000, what should be your maximum amount spent on credit payments?

Correct Answer
verified

What is not a typical credit application question?

Correct Answer
verified

Your credit report may be issued only if this occurs with your consent.

Correct Answer
verified

Exam 5: Introduction to Consumer Credit

Provincial legislation regarding consumer reporting agencies regulate the type of information that can appear in a credit report and protects the consumer's right not to suffer from false information.

Correct AnswerverifiedShow Answer

The use of credit indicates personal and financial instability.

Correct AnswerverifiedShow Answer

If you are a woman, a creditor must

Correct AnswerverifiedShow Answer

Interest is a periodic charge for the use of credit, or other finance charges.

Correct AnswerverifiedShow Answer

The 25-to 44-age group currently represents about 30 percent of the population but holds nearly ____________ percent of the debt outstanding.

Correct AnswerverifiedShow Answer

If you think your bill is wrong, you must notify your creditor in writing within 15 days after the bill was mailed.

Correct AnswerverifiedShow Answer

FICO scores range between

Correct AnswerverifiedShow Answer

Another name for credit when loans are made on a continuous basis and borrower is billed periodically for at least partial payment is known as:

Correct AnswerverifiedShow Answer

When a creditor looks at the borrower's attitude toward credit obligations, which of the 5 Cs of credit is she analyzing?

Correct AnswerverifiedShow Answer

Financing from car dealers in affiliation with financial institutions is called factory financing.

Correct AnswerverifiedShow Answer

What can be included in your credit report?

Correct AnswerverifiedShow Answer

What would your credit rating be if your credit is too new to rate?

Correct AnswerverifiedShow Answer

Cobranding has become increasingly unpopular since General Motors launched its credit card in 1992.

Correct AnswerverifiedShow Answer

If you think that your bill is wrong, you should first

Correct AnswerverifiedShow Answer

In 2016 what type of financial institution held the most consumer credit, excluding mortgages?

Correct AnswerverifiedShow Answer

If your monthly net (after-tax) income is $2,000, what should be your maximum amount spent on credit payments?

Correct AnswerverifiedShow Answer

What is not a typical credit application question?

Correct AnswerverifiedShow Answer

Your credit report may be issued only if this occurs with your consent.

Correct AnswerverifiedShow Answer

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