Question 1

What steps should be taken if you find an error in your credit file?

Accepted Answer

If you think the credit bureau may be re...

Question 2

Which of the following is NOT correct?

Accepted Answer

A)   Using credit is appropriate to pay for medical emergencies.
B)   Using credit can increase the amount of money that will be available to spend in the future.
C)   Using credit sometimes occurs automatically, such as for water or electricity usage.
D)   Using credit cards usually makes returning merchandise without a receipt easier.
E)   Using credit allows consumers to enjoy goods and services now and pay later.

Question 3

A direct loan for personal purposes,home improvements,or vacation expenses is called

Accepted Answer

A)   A credit card.
B)   An installment cash credit.
C)   A bank line of credit.
D)   Open-end credit.
E)   Single lump-sum credit.

Question 4

Interest paid on a credit card is tax-deductible.

Accepted Answer

A) True 
 B)False

Question 5

Timothy Carter went out to eat with his girlfriend at a fancy restaurant.When he tried to pay the bill with his Mastercard credit card,he was told that the restaurant accepted only cash or American Express.His waiter suggested that he use the ATM across the street to withdraw cash using his credit card.Tim did as suggested and didn't pay attention to any fees until he received his credit card statement one month later.He was shocked to see the total fees (3% cash advance) ,and his APR was increased to 21%.Given the cost of the meal ($125) plus the associated fees,how much did his meal cost him?

Accepted Answer

A)   $2.19.
B)   $3.75.
C)   $125.
D)   $130.94.
E)   $151.25.

Question 6

Bankruptcy courts treat gift cards

Accepted Answer

A)   As illegal loans.
B)   As bribes.
C)   The same way they handle unsecured debt.
D)   As a smart choice.
E)   The same as debit cards.

Question 7

Fredrick received a $1,400 loan from the bank for a new appliance.The bank is using the simple interest formula for this two-year,8% loan.What is his total interest?

Accepted Answer

A)   $16
B)   $80
C)   $112
D)   $224
E)   $1,416

Question 8

A bankruptcy remains on a credit file for no more than 5 years.

Accepted Answer

A) True 
 B)False

Question 9

Carrie thought she misplaced her checkbook for a few days.When she found it,she noticed that two checks,her cash,and her debit card were missing.She immediately thought about the increase in identity theft in her area and decided to take some action.She should take all of the following steps except

Accepted Answer

A)   Stop payment on the missing checks.
B)   Cancel her debit card.
C)   Get a new debit card with a new personal identification number (PIN) .
D)   Close her bank account and open a new one.
E)   All of these steps are appropriate to take if she suspects identity theft.

Question 10

In the five Cs of credit,capacity refers to the borrower's trustworthiness and stability.

Accepted Answer

A) True 
 B)False

Exam 5: Consumer Credit: Advantages, Dis-Advantages, Sources, and Costs

Correct Answer
verified

Carrie thought she misplaced her checkbook for a few days.When she found it,she noticed that two checks,her cash,and her debit card were missing.She immediately thought about the increase in identity theft in her area and decided to take some action.She should take all of the following steps except

Correct Answer
verified

Interest paid on a credit card is tax-deductible.

Correct Answer
verified

A bankruptcy remains on a credit file for no more than 5 years.

Correct Answer
verified

In the five Cs of credit,capacity refers to the borrower's trustworthiness and stability.

Correct Answer
verified

Bankruptcy courts treat gift cards

Correct Answer
verified

A direct loan for personal purposes,home improvements,or vacation expenses is called

Correct Answer
verified

What steps should be taken if you find an error in your credit file?

Correct Answer
verified
If you think the credit bureau may be re...
View Answer

Which of the following is NOT correct?

Correct Answer
verified

Fredrick received a $1,400 loan from the bank for a new appliance.The bank is using the simple interest formula for this two-year,8% loan.What is his total interest?

Correct Answer
verified

Exam 5: Consumer Credit: Advantages, Dis-Advantages, Sources, and Costs

Correct AnswerverifiedShow Answer

Carrie thought she misplaced her checkbook for a few days.When she found it,she noticed that two checks,her cash,and her debit card were missing.She immediately thought about the increase in identity theft in her area and decided to take some action.She should take all of the following steps except

Correct AnswerverifiedShow Answer

Interest paid on a credit card is tax-deductible.

Correct AnswerverifiedShow Answer

A bankruptcy remains on a credit file for no more than 5 years.

Correct AnswerverifiedShow Answer

In the five Cs of credit,capacity refers to the borrower's trustworthiness and stability.

Correct AnswerverifiedShow Answer

Bankruptcy courts treat gift cards

Correct AnswerverifiedShow Answer

A direct loan for personal purposes,home improvements,or vacation expenses is called

Correct AnswerverifiedShow Answer

What steps should be taken if you find an error in your credit file?

Correct AnswerverifiedIf you think the credit bureau may be re...View AnswerShow Answer

Which of the following is NOT correct?

Correct AnswerverifiedShow Answer

Fredrick received a $1,400 loan from the bank for a new appliance.The bank is using the simple interest formula for this two-year,8% loan.What is his total interest?

Correct AnswerverifiedShow 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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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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If you think the credit bureau may be re...
View Answer

Correct Answer
verified

Correct Answer
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