Question 1

Brian Porter's net worth is $110,000,excluding his home.His liabilities of $50,000 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)  .65
B)  .74
C)  .45
D)  .35
E)  .28F) A) and D)
G) B) and D)

Question 2

The information in your credit report is primarily used by the credit bureau to compute 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 ratioF) A) and B)
G) C) and E)

Question 3

What should you do if your identity is stolen?

Accepted Answer

A)  contact the fraud departments of each of the 3 major credit bureaus
B)  ignore the problem and hope that it will go away
C)  close all of your accounts and do not say anything to anyone
D)  pay all the charges for which you are billed,even if they are not yours,so you can keep your credit accounts
E)  all of the answersF) B) and C)
G) B) and E)

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

Credit is an arrangement to receive cash,goods,or services now and pay for them in the future.

Accepted Answer

A) True 
 B)False

Question 6

Another name for closed-end credit is:

Accepted Answer

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

Question 7

With closed-end credit,generally the seller holds the title to the merchandise until the payments have been completed.

Accepted Answer

A) True 
 B)False

Question 8

Lester McCann is thinking about getting a loan for a new car.He knows that when he goes shopping for a loan that all of the banks must report the annual percentage rate as well as all other terms and conditions of the loan.This will allow him to easily compare loans from different banks.Which consumer protection law requires full disclosure on all loans?

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 B)

Question 9

The borrower's attitude toward his or her credit obligations is called:

Accepted Answer

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

Question 10

Jane Calvert is applying for a loan from a bank.The bank knows she owns a house worth $150,000 and a car with a trade-in value of $15,000 as well as other personal assets worth approximately $50,000.Which one of the 5 Cs of credit is the bank looking at?

Accepted Answer

A)  character
B)  capacity
C)  capital
D)  collateral
E)  conditionsF) A) and C)
G) A) and B)

Question 11

In the 5 Cs of credit,capital refers to your financial ability to meet credit obligations.

Accepted Answer

A) True 
 B)False

Question 12

If your credit application is denied,you:

Accepted Answer

A)  should sue the credit rating agency.
B)  should file a complaint against the merchant.
C)  have no legal right to know why.
D)  are entitled to know the specific reason you were denied credit.
E)  can reapply for credit after 30 days.F) A) and B)
G) C) and E)

Question 13

Revolving check credit is a:

Accepted Answer

A)  credit arrangement that has no extra costs.
B)  prearranged loan for a specified amount that you can use by writing a special check.
C)  credit arrangement that has no specific repayment plan.
D)  synonym for installment cash credit.
E)  synonym for single lump-sum credit.F) A) and D)
G) B) and C)

Question 14

If you have a complaint against The First National Bank of Edmond,who should you contact?

Accepted Answer

A)  National Credit Union Association.
B)  Federal Trade Commission.
C)  Federal Reserve System.
D)  Comptroller of the Currency.
E)  Bank Vice-President.F) None of the above
G) A) and B)

Question 15

Jake Skinner purchases a big screen TV on credit and will repay the loan with one payment at the end of 90 days.What type of credit did Jake use?

Accepted Answer

A)  installment sales credit
B)  installment cash credit
C)  single lump sum credit
D)  revolving credit
E)  incidental creditF) A) and C)
G) A) and E)

Question 16

Mortgage loans,automobile loans,and installment loans for purchasing furniture or appliances are examples of:

Accepted Answer

A)  a line of credit.
B)  a credit card loan.
C)  open-end credit.
D)  closed-end credit.
E)  convenience credit.F) A) and D)
G) A) and E)

Question 17

Which federal law requires creditors to inform applicants of acceptance or rejection of their credit application within 30 days of receiving a completed application?

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) None of the above
G) B) and C)

Question 18

Which federal law requires credit-reporting agencies to send the consumer's version of a disputed item to certain businesses and creditors?

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

Question 19

Consumer credit dates back to colonial times.

Accepted Answer

A) True 
 B)False

Question 20

If you want to improve your credit score you should:

Accepted Answer

A)  get copies of your credit report.
B)  pay your bills on time.
C)  make sure you understand how your credit score is determined.
D)  beware of credit-repair scams.
E)  do everything listed in the other answers.F) B) and E)
G) A) and E)

Exam 6: Introduction to Consumer Credit

With closed-end credit,generally the seller holds the title to the merchandise until the payments have been completed.

Correct Answer
verified

What should you do if your identity is stolen?

Correct Answer
verified

Revolving check credit is a:

Correct Answer
verified

Jane Calvert is applying for a loan from a bank.The bank knows she owns a house worth $150,000 and a car with a trade-in value of $15,000 as well as other personal assets worth approximately $50,000.Which one of the 5 Cs of credit is the bank looking at?

Correct Answer
verified

Another name for closed-end credit is:

Correct Answer
verified

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

Correct Answer
verified

Credit is an arrangement to receive cash,goods,or services now and pay for them in the future.

Correct Answer
verified

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

Correct Answer
verified

Mortgage loans,automobile loans,and installment loans for purchasing furniture or appliances are examples of:

Correct Answer
verified

Which federal law requires creditors to inform applicants of acceptance or rejection of their credit application within 30 days of receiving a completed application?

Correct Answer
verified

Consumer credit dates back to colonial times.

Correct Answer
verified

Which federal law requires credit-reporting agencies to send the consumer's version of a disputed item to certain businesses and creditors?

Correct Answer
verified

If your credit application is denied,you:

Correct Answer
verified

Correct Answer
verified

In the 5 Cs of credit,capital refers to your financial ability to meet credit obligations.

Correct Answer
verified

Correct Answer
verified

The borrower's attitude toward his or her credit obligations is called:

Correct Answer
verified

If you want to improve your credit score you should:

Correct Answer
verified

Jake Skinner purchases a big screen TV on credit and will repay the loan with one payment at the end of 90 days.What type of credit did Jake use?

Correct Answer
verified

If you have a complaint against The First National Bank of Edmond,who should you contact?

Correct Answer
verified

Exam 6: Introduction to Consumer Credit

With closed-end credit,generally the seller holds the title to the merchandise until the payments have been completed.

Correct AnswerverifiedShow Answer

What should you do if your identity is stolen?

Correct AnswerverifiedShow Answer

Revolving check credit is a:

Correct AnswerverifiedShow Answer

Jane Calvert is applying for a loan from a bank.The bank knows she owns a house worth $150,000 and a car with a trade-in value of $15,000 as well as other personal assets worth approximately $50,000.Which one of the 5 Cs of credit is the bank looking at?

Correct AnswerverifiedShow Answer

Another name for closed-end credit is:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Credit is an arrangement to receive cash,goods,or services now and pay for them in the future.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Mortgage loans,automobile loans,and installment loans for purchasing furniture or appliances are examples of:

Correct AnswerverifiedShow Answer

Which federal law requires creditors to inform applicants of acceptance or rejection of their credit application within 30 days of receiving a completed application?

Correct AnswerverifiedShow Answer

Consumer credit dates back to colonial times.

Correct AnswerverifiedShow Answer

Which federal law requires credit-reporting agencies to send the consumer's version of a disputed item to certain businesses and creditors?

Correct AnswerverifiedShow Answer

If your credit application is denied,you:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

In the 5 Cs of credit,capital refers to your financial ability to meet credit obligations.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The borrower's attitude toward his or her credit obligations is called:

Correct AnswerverifiedShow Answer

If you want to improve your credit score you should:

Correct AnswerverifiedShow Answer

Jake Skinner purchases a big screen TV on credit and will repay the loan with one payment at the end of 90 days.What type of credit did Jake use?

Correct AnswerverifiedShow Answer

If you have a complaint against The First National Bank of Edmond,who should you contact?

Correct AnswerverifiedShow Answer

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