BUS160

Daves net pay per month is $2,000. What is the maximum dollar amount of debt payment he should have?

$400

A reasonably good debt-equity ratio for an individual excluding a home mortgage would be

.35-.40

If you have declared personal bankruptcy, that facts may be reported to credit bureaus for __ years

10

Experts suggest that you spend no more than __% of your net income on non housing related credit purchases

20

The baby boom generation currently represents about 30% of the population, but holds nearly ___% of the debt outstanding

60%

most of the information in your credit file may be reported for __ years

7

Which of the following can be included in your credit report

A marital status

Which of the following is most likely NOT a valid reason for using credit?

Borrowing to support monthly entertainment activities

A load officer is examining your income and the amount of your existing debt payments in deciding whether or not to make a load to you today. Which of the following C's is the officer assessing?

Capacity

A term that refers to the borrowers assets or net worth is called

Capital

Kathy purchased a $1,000 digital TV from young appliances. She will make 12 equal payments over the next year to pay for it. She is using what kind of credit?

Closed end credit

A valuable asset pledged to assure loan payments and that is subject to seizure upon debt default is called ....

Collateral

When did installment credit explode on the American Scene?

During the early 1900's when automobiles were first mass-produced

Which federal laws protects you by requiring credit bureaus furnish accurate and complete information to leaders?

Fair credit reporting act

Which of the following is a disadvantage of using credit?

Increases propensity to overspend

Greg Thompson uses his visa card to purchase a new digital camera and lens. What type of credit did Greg use?

Revolving credit

Which of the following agencies can produce for a subscribing creditor, almost instantaneously, a report about your past and present financial activity

The credit bureau

Which federal consumer credit laws provides specific case disclosure requirements for the annual percentage cost rate (APR) and the finance charge as a dollar amount?

Truth in lending act

Which of the following is NOT included as part of the calculation of your FICO score

Whether the accounts are single or jointly held

The borrowers financial ability to meet credit obligation is called

capacity

If you are deemed credit, your first step should be to

check your credit bureau file

what is the first thing you should do if your identity is stolen?

contact the 3 major credit bureaus

Another name for closed end credit is

installment credit

The debt payments-to-income ratio is

monthly credit payment/net pay

In determining your credit capacity, you must first provide for basic necessities, such as

mortgage/rent

Another name for open-end credit is

revolving credit

debt to equity ratios are calculated by dividing...

total liabilities by net worth

which federal law limits a cardholders liability for unauthorized use of a card to $50>

truth in lending act

When/if you co-sign a loan:

you will not have to pay the debt if the borrower does not

In evaluating your credit application, a lender may ask...

your age