Question 1

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 B)
G) C) and E)

Question 2

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

Question 3

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

Question 4

Most economists do not recognize consumer credit as a major force in the American economy.

Accepted Answer

A) True 
 B)False

Question 5

A friend comes to you for advice about improving their credit score.What advice would you give them? Make sure to include the five steps for improving your credit score.

Accepted Answer

You will want to make sure to tell them ...

Question 6

A creditor may ignore your retirement income in rating your application.

Accepted Answer

A) True 
 B)False

Question 7

Samantha Prescott knows that credit companies must evaluate her on the same basis as a borrower who is male.Which consumer protection law guarantees her this right?

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) B) and E)
G) A) and B)

Question 8

Which federal law regulates the use of credit reports,requires the deletion of obsolete information,and gives consumers access to their file?

Accepted Answer

A)  Truth in Lending Act of 1969
B)  Fair Credit Billing Act of 1975
C)  Equal Credit Opportunity Act of 1975
D)  Fair Credit Reporting Act of 1971
E)  Fair Debit Collection Practices Act of 1978F) A) and E)
G) A) and D)

Question 9

A bank that is looking at your past payment records on your loans is most likely examining which aspect of the 5 Cs of lending?

Accepted Answer

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

Question 10

Which federal consumer credit 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) A) and B)
G) A) and C)

Question 11

Interest is a periodic charge for the use of credit.

Accepted Answer

A) True 
 B)False

Question 12

A lender requires a cosigner even when a borrower meets the lender's criteria for making a loan.

Accepted Answer

A) True 
 B)False

Question 13

"Shopaholics" and young adults are most vulnerable to misusing credit.

Accepted Answer

A) True 
 B)False

Question 14

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 E)
G) B) and E)

Question 15

The maximum dollar amount of credit the lender has made available to you is called:

Accepted Answer

A)  revolving credit.
B)  line of credit.
C)  convenience credit.
D)  installment cash credit.
E)  single lump-sum credit.F) A) and C)
G) C) and E)

Question 16

With open-end credit,you pay back one-time loans in a specified period of time in payments of equal amounts.

Accepted Answer

A) True 
 B)False

Question 17

With closed-end credit,loans are made on a continuous basis and you make at least a partial payment each billing period.

Accepted Answer

A) True 
 B)False

Question 18

The Fair Credit Billing Act sets the procedures for promptly correcting billing errors.

Accepted Answer

A) True 
 B)False

Question 19

Which federal credit law protects you against an unauthorized use of your credit card?

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) None of the above
G) A) and D)

Question 20

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

Accepted Answer

A)  Borrowing for a stay in a hospital because of appendicitis
B)  Borrowing to purchase a car so that you can go to work full-time
C)  Borrowing to buy a printer for your home office now because you know it will be twice as expensive in two years
D)  Borrowing to pay for your expensive dinner and movie every week
E)  All of these are valid reasons for using credit.F) B) and D)
G) C) and D)

Exam 6: Introduction to Consumer Credit

"Shopaholics" and young adults are most vulnerable to misusing credit.

Correct Answer
verified

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

Correct Answer
verified

Samantha Prescott knows that credit companies must evaluate her on the same basis as a borrower who is male.Which consumer protection law guarantees her this right?

Correct Answer
verified

Which federal law regulates the use of credit reports,requires the deletion of obsolete information,and gives consumers access to their file?

Correct Answer
verified

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

Correct Answer
verified

With open-end credit,you pay back one-time loans in a specified period of time in payments of equal amounts.

Correct Answer
verified

Interest is a periodic charge for the use of credit.

Correct Answer
verified

Correct Answer
verified

The maximum dollar amount of credit the lender has made available to you is called:

Correct Answer
verified

Which federal credit law protects you against an unauthorized use of your credit card?

Correct Answer
verified

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

Correct Answer
verified

A lender requires a cosigner even when a borrower meets the lender's criteria for making a loan.

Correct Answer
verified

A friend comes to you for advice about improving their credit score.What advice would you give them? Make sure to include the five steps for improving your credit score.

Correct Answer
verified
You will want to make sure to tell them ...
View Answer

A creditor may ignore your retirement income in rating your application.

Correct Answer
verified

A bank that is looking at your past payment records on your loans is most likely examining which aspect of the 5 Cs of lending?

Correct Answer
verified

The Fair Credit Billing Act sets the procedures for promptly correcting billing errors.

Correct Answer
verified

With closed-end credit,loans are made on a continuous basis and you make at least a partial payment each billing period.

Correct Answer
verified

Most economists do not recognize consumer credit as a major force in the American economy.

Correct Answer
verified

If your credit application is denied,you:

Correct Answer
verified

Which federal consumer credit 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

Exam 6: Introduction to Consumer Credit

"Shopaholics" and young adults are most vulnerable to misusing credit.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Samantha Prescott knows that credit companies must evaluate her on the same basis as a borrower who is male.Which consumer protection law guarantees her this right?

Correct AnswerverifiedShow Answer

Which federal law regulates the use of credit reports,requires the deletion of obsolete information,and gives consumers access to their file?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

With open-end credit,you pay back one-time loans in a specified period of time in payments of equal amounts.

Correct AnswerverifiedShow Answer

Interest is a periodic charge for the use of credit.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The maximum dollar amount of credit the lender has made available to you is called:

Correct AnswerverifiedShow Answer

Which federal credit law protects you against an unauthorized use of your credit card?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A lender requires a cosigner even when a borrower meets the lender's criteria for making a loan.

Correct AnswerverifiedShow Answer

A friend comes to you for advice about improving their credit score.What advice would you give them? Make sure to include the five steps for improving your credit score.

Correct AnswerverifiedYou will want to make sure to tell them ...View AnswerShow Answer

A creditor may ignore your retirement income in rating your application.

Correct AnswerverifiedShow Answer

A bank that is looking at your past payment records on your loans is most likely examining which aspect of the 5 Cs of lending?

Correct AnswerverifiedShow Answer

The Fair Credit Billing Act sets the procedures for promptly correcting billing errors.

Correct AnswerverifiedShow Answer

With closed-end credit,loans are made on a continuous basis and you make at least a partial payment each billing period.

Correct AnswerverifiedShow Answer

Most economists do not recognize consumer credit as a major force in the American economy.

Correct AnswerverifiedShow Answer

If your credit application is denied,you:

Correct AnswerverifiedShow Answer

Which federal consumer credit 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

Correct Answer
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Correct Answer
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Correct Answer
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You will want to make sure to tell them ...
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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