7.2

Pataasin ang iyong marka sa homework at exams ngayon gamit ang Quizwiz!

Which of the following transactions would likely be difficult to make without a credit card? a. buying a house b. buying groceries c. purchasing a car d. reserving a hotel room

D

The need for credit arose in the United States with the dawn of the a. Information Age. b. Great Depression. c. American Revolution. d. Industrial Revolution.

D

The total dollar amount of all interest and fees you pay for the use of credit is called the a. collateral. b. balance due. c. principal. d. finance charge.

D

A consumer request that requires the credit bureaus to deny all access to a consumer's credit information or files is called a a. credit freeze. b. line of credit. c. credit guard. d. garnishment.

A

A legal business that makes high-interest loans based on the value of personal possessions is called a a. pawnbroker. b. loan shark. c. fence. d. finance company.

A

Credit reports are issued by a. credit bureaus b. banks and savings and loans. c. credit unions. d. your employer.

A

Which of the following is least likely to offer service credit? a. a furniture store b. a doctor's office c. the telephone company d. a dry cleaner

A

Tammi wants to buy a new stereo system. She finds one for $500 at Stereo City. She withdraws $250 from her account at First National Bank and obtains a loan from her parents for the rest of the amount. Then she purchases the stereo. In this scenario, who is the debtor? a. Stereo City b. Tammi c. First National Bank d. Tammi's parents

B

The first loan you take out from your bank or credit union should be for no longer than a. one year. b. six months. c. two years. d. five years.

B

Credit bureaus gather information from businesses, called _____, that pay a monthly fee to the credit bureau. a. brokerage firms b. debtors c. subscribers d. retailers

C

On a FICO score, new credit is rated based on a. the mix of credit accounts a consumer has. b. the average age of all of a consumer's credit accounts. c. the number of recently opened accounts and the number of recent credit inquiries. d. whether accounts are past due or paid as agreed.

C

One difference between a charge card and a credit card is that a. charge cards almost always have lower credit limits than credit cards. b. charge cards are open-end credit, whereas credit cards are closed-end credit. c. the full balance on a charge card must be paid each month. d. none of the above; there is no difference between the two.

C

This law requires lenders to fully inform consumers about all costs of a credit purchase before an agreement is signed. a. the Equal Credit Opportunity Act b. the Fair Credit Billing Act c. the Consumer Credit Protection Act d. the Fair Credit Reporting Act

C

Which of the following is the first step most people take to establish a good credit record? a. apply for a credit card b. open a checking account c. open a savings account d. open a store credit account

C

Which of the following might be included in your credit report? a. your address b. your marital status c. all of the above can be included in your credit report d. your occupation

C

Your financial position is based on your a. age. b. collateral. c. capital. d. income.

C

A service available to charge customers whereby purchases are not billed until much later than the standard billing time is called a. a line of credit. b. a leveraged payment plan. c. a secured loan. d. deferred billing.

D

If you go over your credit limit or make your payment late, you will likely be charged a a. transaction fee. b. annual fee. c. maintenance fee. d. penalty fee.

D

Simon pays his bills on the due date or within a ten-day grace period. This would probably earn him a a. poor credit rating. b. excellent credit rating. c. fair credit rating. d. good credit rating.

D

The financial ability to repay a loan with present income is known as a. cash flow. b. conditions. c. consideration. d. capacity.

D

By the 1990s, the credit craze had subsided in America, and Americans began saving more than they were spending.

False

Carrying a credit card is much more dangerous than carrying cash.

False

Collateral refers to financial assets you possess that are worth more than your debts.

False

Credit purchases almost always cost less than cash purchases.

False

Any public information becomes part of your credit record.

True

Before granting you credit, a creditor will check into your past credit performance.

True

Businesses can make a credit inquiry on you without your permission, but usually they do not count toward your credit score.

True

Credit is the most commonly used method of purchase in the United States.

True

Early in the history of the United States, credit consisted of a verbal promise to pay later, and interest was rarely charged.

True

If the economy is slowing down and unemployment is rising, creditors may be less willing to loan to you.

True


Kaugnay na mga set ng pag-aaral

Bushong Chapter 2 Workbook 2-1-2-5

View Set

Chapter 26: Drugs Used to Treat Thromboembolic Disorders

View Set

(C) Name the tissue or part of the body contained in the following terms and give the meaning of the entire term.

View Set

CH. 16 Psych, General psych study guide 14, 16

View Set

A Global View of Operations and Supply Chains

View Set

Person Centered Therapy, Existential Therapy, Gestalt Therapy, Chapter 8 Gestalt Therapy Questions, Psychoanalytic Theory/Gestalt/Existential/Person Centred/ Ethical Issues in Counseling Practice

View Set