Question 1

One common type of closed-end credit is:

Accepted Answer

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

Question 2

In the 5 Cs of credit,collateral is an asset that you pledge to a financial institution to obtain a loan.

Accepted Answer

A) True 
 B)False

Question 3

In the 5 Cs of credit,capital refers to your assets or net worth.

Accepted Answer

A) True 
 B)False

Question 4

What is revolving check credit?

Accepted Answer

Revolving check credit is a prearranged ...

Question 5

The Consumer Financial Protection Bureau receives an average of how many complaints about the credit bureaus every year?

Accepted Answer

A)  5,000
B)  25,000
C)  36,000
D)  42,000
E)  50,000F) C) and E)
G) A) and E)

Question 6

Credit bureaus obtain their data from banks,finance companies,merchants,credit card companies,other creditors,and court records.

Accepted Answer

A) True 
 B)False

Question 7

In the 5 Cs of credit,character refers to the borrower's attitude toward his or her credit obligations.

Accepted Answer

A) True 
 B)False

Question 8

Which federal 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 ActF) C) and D)
G) B) and D)

Question 9

The information in your credit report is primarily used by the credit bureau to calculate your:

Accepted Answer

A)  debt to equity ratio.
B)  FICO credit score.
C)  debt payment to income ratio.
D)  liquidity ratio.
E)  long term capitalization ratio.F) B) and D)
G) B) and C)

Question 10

Which one of the following would not be considered closed-end credit?

Accepted Answer

A)  Home mortgage
B)  Installment loan to purchase new furniture
C)  Line of credit from your bank
D)  Automobile loan
E)  Single lump-sum credit loan due in 90 daysF) All of the above
G) B) and C)

Question 11

If your debit card is lost or stolen,you must work directly with the issuer.

Accepted Answer

A) True 
 B)False

Question 12

Stored-value cards:

Accepted Answer

A)  look nothing like typical debit cards.
B)  have decreased in popularity since the mid
C)  work the same as a credit card.
D)  can lose their value if a retailer goes bankrupt.
E)  are currently being used for very limited purposes.F) D) and E)
G) A) and B)

Question 13

The debt-to-equity ratio is calculated by dividing your monthly debt payments by your net worth.

Accepted Answer

A) True 
 B)False

Question 14

Debit cards are often called:

Accepted Answer

A)  bank cards.
B)  ATM cards.
C)  cash cards.
D)  check cards.
E)  All of theseF) A) and D)
G) C) and D)

Question 15

Which one of the following would not be a good use of a home equity loan?

Accepted Answer

A)  Paying for a college education
B)  Buying a new boat
C)  Putting a new roof on your house
D)  Paying medical bills
E)  Adding a deck on the back of your houseF) None of the above
G) A) and B)

Question 16

How can you protect yourself against credit card fraud?

Accepted Answer

Here are the ways to...

Question 17

How many alternatives do most consumers have in financing current purchases?

Accepted Answer

A)  1
B)  2
C)  3
D)  4
E)  unlimitedF) C) and D)
G) A) and B)

Question 18

With a revolving line of credit,borrowings are permitted up to a specified limit and for a stated period,usually 5 to 10 years.

Accepted Answer

A) True 
 B)False

Question 19

Elizabeth has a monthly net income of $1,600.She has a house payment of $600 per month,a car loan with payments of $400 per month,a Visa card with payments of $75 per month,and a credit card with a local department store with payments of $125 per month.What is Elizabeth's debt payment-to-income ratio? Is she within range of what experts suggest you spend on consumer credit payments?

Accepted Answer

Elizabeth's net monthly income = $1,600
...

Question 20

The debt-to-equity ratio is:

Accepted Answer

A)  calculated by dividing total liabilities by net worth.
B)  calculated by dividing monthly debt payments by net monthly income.
C)  determined by dividing your assets by your liabilities.
D)  a useless ratio for determining your credit capacity.
E)  rarely used by creditors in determining credit worthiness.F) B) and D)
G) C) and D)

Exam 6: Introduction to Consumer Credit

Credit bureaus obtain their data from banks,finance companies,merchants,credit card companies,other creditors,and court records.

Correct Answer
verified

The debt-to-equity ratio is:

Correct Answer
verified

What is revolving check credit?

Correct Answer
verified
Revolving check credit is a prearranged ...
View Answer

Correct Answer
verified
Elizabeth's net monthly income = $1,600
...
View Answer

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

Correct Answer
verified

The debt-to-equity ratio is calculated by dividing your monthly debt payments by your net worth.

Correct Answer
verified

Stored-value cards:

Correct Answer
verified

If your debit card is lost or stolen,you must work directly with the issuer.

Correct Answer
verified

Which one of the following would not be considered closed-end credit?

Correct Answer
verified

The Consumer Financial Protection Bureau receives an average of how many complaints about the credit bureaus every year?

Correct Answer
verified

Which one of the following would not be a good use of a home equity loan?

Correct Answer
verified

Debit cards are often called:

Correct Answer
verified

With a revolving line of credit,borrowings are permitted up to a specified limit and for a stated period,usually 5 to 10 years.

Correct Answer
verified

How many alternatives do most consumers have in financing current purchases?

Correct Answer
verified

In the 5 Cs of credit,character refers to the borrower's attitude toward his or her credit obligations.

Correct Answer
verified

How can you protect yourself against credit card fraud?

Correct Answer
verified
Here are the ways to...
View Answer

In the 5 Cs of credit,collateral is an asset that you pledge to a financial institution to obtain a loan.

Correct Answer
verified

The information in your credit report is primarily used by the credit bureau to calculate your:

Correct Answer
verified

One common type of closed-end credit is:

Correct Answer
verified

In the 5 Cs of credit,capital refers to your assets or net worth.

Correct Answer
verified

Exam 6: Introduction to Consumer Credit

Credit bureaus obtain their data from banks,finance companies,merchants,credit card companies,other creditors,and court records.

Correct AnswerverifiedShow Answer

The debt-to-equity ratio is:

Correct AnswerverifiedShow Answer

What is revolving check credit?

Correct AnswerverifiedRevolving check credit is a prearranged ...View AnswerShow Answer

Correct AnswerverifiedElizabeth's net monthly income = $1,600...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

The debt-to-equity ratio is calculated by dividing your monthly debt payments by your net worth.

Correct AnswerverifiedShow Answer

Stored-value cards:

Correct AnswerverifiedShow Answer

If your debit card is lost or stolen,you must work directly with the issuer.

Correct AnswerverifiedShow Answer

Which one of the following would not be considered closed-end credit?

Correct AnswerverifiedShow Answer

The Consumer Financial Protection Bureau receives an average of how many complaints about the credit bureaus every year?

Correct AnswerverifiedShow Answer

Which one of the following would not be a good use of a home equity loan?

Correct AnswerverifiedShow Answer

Debit cards are often called:

Correct AnswerverifiedShow Answer

With a revolving line of credit,borrowings are permitted up to a specified limit and for a stated period,usually 5 to 10 years.

Correct AnswerverifiedShow Answer

How many alternatives do most consumers have in financing current purchases?

Correct AnswerverifiedShow Answer

In the 5 Cs of credit,character refers to the borrower's attitude toward his or her credit obligations.

Correct AnswerverifiedShow Answer

How can you protect yourself against credit card fraud?

Correct AnswerverifiedHere are the ways to...View AnswerShow Answer

In the 5 Cs of credit,collateral is an asset that you pledge to a financial institution to obtain a loan.

Correct AnswerverifiedShow Answer

The information in your credit report is primarily used by the credit bureau to calculate your:

Correct AnswerverifiedShow Answer

One common type of closed-end credit is:

Correct AnswerverifiedShow Answer

In the 5 Cs of credit,capital refers to your assets or net worth.

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Revolving check credit is a prearranged ...
View Answer

Correct Answer
verified
Elizabeth's net monthly income = $1,600
...
View Answer

Correct Answer
verified

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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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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Correct Answer
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Here are the ways to...
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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