chapter 7
Kay Halden had three credit cards in her billfold when her wallet was stolen. She reported the cards missing as soon as she discovered the loss (one day), but the following charges were incurred before she reported the stolen cards: Sears $585 Visa $35 Foleys $40 How much is Kay's maximum legal liability for the fraudulent charges on these cards?
$0
Justin Bailey had a beginning balance of $100 on his credit card as of May 1 last month. On May 11 he charged a meal for $44. On May 21 he made a payment of $48. What was his average daily balance for the month?
$113
Your credit card liability for fraudulent usage of your lost or stolen credit card is limited to $____ if you report the loss.
50
Credit card costs can include
All of these
If no payment is received by the due date on a credit account,
All of these
The sum of outstanding balances owed each day during the billing period divided by the number of days in the period is the
Average daily balance
The contract supporting an installment loan is called a(n)
Promissory note
Which of the following is an example of an unsecured debt?
Signature loan
With a home-equity line of credit the collateral is
The difference between what the home is worth and the balance owed on the first mortgage
A lien is a legal right to seize and dispose of (usually sell) property for payment of a claim.
True
A preapproved credit card offer means that you will be granted credit, but the credit card debt limit and APR will be determined after you apply for an account.
True
Consumer installment loans typically are made with a fixed interest rate.
True
Credit card issuers sometimes send convenience checks to customers in an effort to entice them to take out a costly cash advance.
True
Making a payment on one credit card with a cash advance from another is called a balance transfer.
True
Service credit is granted to consumers by public utilities, physicians, dentists, and other service providers that do not require full payment when services are rendered.
True
The time period between billing dates is referred to as the billing cycle.
True
A secured credit card is backed by collateral in the form of a savings account opened at the financial institution that issues the card, and this savings balance can be withdrawn at any time.
False
Credit life insurance is generally a good buy for the borrower.
False
If you cut up your credit card, the account is effectively closed.
False
If your credit card issuer allows you to "skip a payment," interest will not be charged for the month.
False
You must make a billing error complaint within 60 days after the transaction has posted.
False
