personal finance chapter 7 quiz
A buying plan should include all of the following except a. a spending limit b. criteria c. a timeline d. collateral
d
Information related to a bankruptcy stays in your credit file for how long? a. 180 days b. 3 years c. 7 years d. 10 years
d
Creditors can never raise the interest rate on a credit card account with a fixed rate. a. True b. False
false
Each purchase you make involves two choices—what to buy and when to buy it. a. True b. False
false
Financial irresponsibility typically leads to bankruptcy. a. True b. False
false
Most creditors use the adjusted balance method for computing interest. a. True b. False
false
Visa and MasterCard are examples of charge cards. a. True b. False
false
When creating a buying plan, you should set a spending limit before choosing the item to buy. a. True b. False
false
Bank and store credit cards are a type of revolving credit. a. True b. False
true
Being financially responsible means you are able to make payments as agreed and honor your financial commitments. a. True b. False
true
No interest is charged on the unused portion of a line of credit. a. True b. False
true
Penalty fees are not permitted to be higher than the minimum payment due. a. True b. False
true
The minimum payment due and the payment due date must be disclosed on your monthly credit card statement. a. True b. False
true
The person who borrows money is called a debtor. a. True b. False
true
When defining your spending goal, you should recognize your opportunity cost. a. True b. False
true
With a rewards program, you can get money back for using your credit card. a. True b. False
true
Which of the following carries the most weight when calculating a FICO score? a. payment history b. amounts owed c. length of credit history d. types of credit used
a
Which of the following is an example of a charge card? a. American Express b. Visa c. Discover d. MasterCard
a
Which of the following is the first step of a buying plan? a. define a spending goal b. list items that will meet the goal c. describe features of the ideal choice d. set a timeline
a
Implementing a buying plan involves all of the following except a. comparison shopping b. setting a spending limit c. making a purchase d. evaluating the purchase
b
Which of the following is a disadvantage of credit? a. decreased purchasing power b. overspending c. security d. inconvenience
b
Which of the following is not a major credit bureau? a. TransUnion b. Experian c. Equifax d. Fair Isaac and Company
b
Visiting a doctor and paying later involves which of the following types of credit? a. revolving b. installment c. service d. charge card
c