personal finance chapter 6
Which of the following cards is issued as a form of credit by department stores and oil companies?
A retail charge card
_____ cards offer the cardholder a way to contribute to a worthy cause and are sometimes described as "credit cards with a cause."
Affinity
Which of the following will lead to a poor credit rating?
Applying for a long-term loan and occasionally being late with a payment
_____ is a benefit of using credit cards.
Being able to meet a financial emergency
Which of the following is an improper use of credit?
Buying a short-lived good
Personal insolvency can be legally satisfied by:
Chapter 13 of the Bankruptcy Code
Which of the following is a preferred use of a credit card?
Occasionally for convenience
A(n) _____ is an agency that provides credit information about individual borrowers to lenders.
credit bureau
Most creditors ____________ if you are having difficulty meeting your payments.
will work out a solution
If your monthly before-tax income is $2,000 and your monthly take-home pay is $1,500, your maximum monthly consumer credit payments should not exceed:
$300
As a percent of take-home pay, monthly consumer credit payments should not exceed _____.
20%
Which of the following is true about phishing?
Pretending to be an employee of a financial institution
Which of the following is the correct expression for calculating the debt safety ratio?
Total monthly consumer credit payments / Monthly take-home pay
If a borrower has a high credit score, then there is ____________.
a high chance of his or her loan getting approved
A straight bankruptcy _____.
allows a debtor to retain some other personal assets as per federal regulations
A credit scoring system might assign points according to your age and ____________.
annual income
Chapter 7 of the bankruptcy code:
eliminates most of the financial obligations of the borrower.
To establish creditworthiness and to have a good credit score, one should probably first:
open savings and checking accounts.
Persons with very poor credit ratings can still get _____ credit cards.
secured
With a bank credit card, one can often avoid interest charges if:
the account balance is paid in full every month.