Question 1

Gordon Carey uses his Visa card to purchase a new digital camera and lens.What type of credit did Gordon use?

Accepted Answer

A)  Installment sales credit
B)  Installment cash credit
C)  Single lump-sum credit
D)  Open-end credit
E)  Incidental creditF) B) and D)
G) B) and E)

Question 2

A valuable asset pledged to obtain a loan and subject to seizure upon default to satisfy the debt is called:

Accepted Answer

A)  capacity.
B)  character.
C)  capital.
D)  collateral.
E)  conditions.F) B) and E)
G) C) and D)

Question 3

Experts suggest that you spend no more than ____________ percent of your net income (after-tax) on consumer credit payments.

Accepted Answer

A)  10
B)  20
C)  30
D)  40
E)  50F) A) and B)
G) B) and D)

Question 4

Many banks extend a bank line of credit,which is also called:

Accepted Answer

A)  revolving check credit.
B)  a box of credit.
C)  convenience credit.
D)  installment credit.
E)  single lump-sum credit.F) A) and B)
G) None of the above

Question 5

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 D)
G) A) and E)

Question 6

Which federal consumer credit law regulates the advertising of credit terms?

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) C) and D)
G) B) and D)

Question 7

What are the three most common types of closed-end credit?

Accepted Answer

The three most common types of...

Question 8

What can you do if your identity is stolen?

Accepted Answer

If your identity is stolen,take three ac...

Question 9

Larry Arnold gets a direct loan of money to go on vacation with his family.He will repay the loan over the next twelve months.What type of credit did Larry use?

Accepted Answer

A)  Installment sales credit
B)  Installment cash credit
C)  Single lump-sum credit
D)  Revolving credit
E)  Incidental creditF) B) and D)
G) C) and D)

Question 10

Perhaps the greatest disadvantage of using credit is the temptation to overspend.

Accepted Answer

A) True 
 B)False

Question 11

Mike Cook has been receiving calls at work every two hours from a collection company that is trying to collect a past due loan from him.He believes this is harassment and that the collections company is not allowed to do this.Which consumer protection law provides protection from this type of harassment?

Accepted Answer

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

Question 12

Installment sales credit is a:

Accepted Answer

A)  direct loan of money for personal purposes.
B)  direct loan of money for home improvement.
C)  loan that allows you to receive merchandise such as large appliances or furniture.
D)  direct loan for vacation purposes.
E)  synonym for a single lump-sum credit.F) A) and B)
G) None of the above

Question 13

If you have a problem with your credit account,the best solution is to:

Accepted Answer

A)  file a lawsuit against the creditor.
B)  solve your problem directly with the creditor.
C)  complain to the Federal Reserve System.
D)  complain to the Board of Governors.
E)  wait for creditor action.F) A) and E)
G) A) and B)

Question 14

Debit cards are often called bank cards,ATM cards,cash cards,and check cards.

Accepted Answer

A) True 
 B)False

Question 15

In determining your credit capacity,you first provide for basic necessities within your budget,such as:

Accepted Answer

A)  furniture.
B)  home furnishings.
C)  mortgage or rent.
D)  automobile.
E)  durable goods.F) D) and E)
G) A) and D)

Question 16

Which one of the following is an advantage of using credit?

Accepted Answer

A)  Potential bankruptcy
B)  Spending beyond your budget
C)  Funding an emergency expense
D)  Committing future income to pay for current purchases
E)  Incurring interest chargesF) A) and B)
G) C) and D)

Question 17

Using a credit card,such as Visa or MasterCard,is an example of closed-end credit.

Accepted Answer

A) True 
 B)False

Question 18

The Equal Credit Opportunity Act is very specific about how a person's age may be used in credit decisions.

Accepted Answer

A) True 
 B)False

Question 19

According to the Credit CARD Act,your credit card company must send you a notice ___days before they can increase your interest rate.

Accepted Answer

A)  30
B)  45
C)  50
D)  60
E)  90F) A) and D)
G) B) and C)

Question 20

A term that refers to the borrower's assets or net worth is called:

Accepted Answer

A)  capacity.
B)  character.
C)  capital.
D)  collateral.
E)  conditions.F) A) and C)
G) A) and E)

Exam 6: Introduction to Consumer Credit

Gordon Carey uses his Visa card to purchase a new digital camera and lens.What type of credit did Gordon use?

Correct Answer
verified

According to the Credit CARD Act,your credit card company must send you a notice ___days before they can increase your interest rate.

Correct Answer
verified

Which federal consumer credit law regulates the advertising of credit terms?

Correct Answer
verified

Many banks extend a bank line of credit,which is also called:

Correct Answer
verified

Using a credit card,such as Visa or MasterCard,is an example of closed-end credit.

Correct Answer
verified

A valuable asset pledged to obtain a loan and subject to seizure upon default to satisfy the debt is called:

Correct Answer
verified

If you have a problem with your credit account,the best solution is to:

Correct Answer
verified

Larry Arnold gets a direct loan of money to go on vacation with his family.He will repay the loan over the next twelve months.What type of credit did Larry use?

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

A term that refers to the borrower's assets or net worth is called:

Correct Answer
verified

Correct Answer
verified

In determining your credit capacity,you first provide for basic necessities within your budget,such as:

Correct Answer
verified

Perhaps the greatest disadvantage of using credit is the temptation to overspend.

Correct Answer
verified

What can you do if your identity is stolen?

Correct Answer
verified
If your identity is stolen,take three ac...
View Answer

What are the three most common types of closed-end credit?

Correct Answer
verified
The three most common types of...
View Answer

Which one of the following is an advantage of using credit?

Correct Answer
verified

Installment sales credit is a:

Correct Answer
verified

The Equal Credit Opportunity Act is very specific about how a person's age may be used in credit decisions.

Correct Answer
verified

Debit cards are often called bank cards,ATM cards,cash cards,and check cards.

Correct Answer
verified

Experts suggest that you spend no more than ____________ percent of your net income (after-tax) on consumer credit payments.

Correct Answer
verified

Exam 6: Introduction to Consumer Credit

Gordon Carey uses his Visa card to purchase a new digital camera and lens.What type of credit did Gordon use?

Correct AnswerverifiedShow Answer

According to the Credit CARD Act,your credit card company must send you a notice ___days before they can increase your interest rate.

Correct AnswerverifiedShow Answer

Which federal consumer credit law regulates the advertising of credit terms?

Correct AnswerverifiedShow Answer

Many banks extend a bank line of credit,which is also called:

Correct AnswerverifiedShow Answer

Using a credit card,such as Visa or MasterCard,is an example of closed-end credit.

Correct AnswerverifiedShow Answer

A valuable asset pledged to obtain a loan and subject to seizure upon default to satisfy the debt is called:

Correct AnswerverifiedShow Answer

If you have a problem with your credit account,the best solution is to:

Correct AnswerverifiedShow Answer

Larry Arnold gets a direct loan of money to go on vacation with his family.He will repay the loan over the next twelve months.What type of credit did Larry use?

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

A term that refers to the borrower's assets or net worth is called:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

In determining your credit capacity,you first provide for basic necessities within your budget,such as:

Correct AnswerverifiedShow Answer

Perhaps the greatest disadvantage of using credit is the temptation to overspend.

Correct AnswerverifiedShow Answer

What can you do if your identity is stolen?

Correct AnswerverifiedIf your identity is stolen,take three ac...View AnswerShow Answer

What are the three most common types of closed-end credit?

Correct AnswerverifiedThe three most common types of...View AnswerShow Answer

Which one of the following is an advantage of using credit?

Correct AnswerverifiedShow Answer

Installment sales credit is a:

Correct AnswerverifiedShow Answer

The Equal Credit Opportunity Act is very specific about how a person's age may be used in credit decisions.

Correct AnswerverifiedShow Answer

Debit cards are often called bank cards,ATM cards,cash cards,and check cards.

Correct AnswerverifiedShow Answer

Experts suggest that you spend no more than ____________ percent of your net income (after-tax) on consumer credit payments.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
If your identity is stolen,take three ac...
View Answer

Correct Answer
verified
The three most common types of...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified