CSR 103 Chapter 05 Quiz

Tommy lost his prepaid "City Buck" card 3 weeks ago. Someone found the card and made $311 worth of purchases, which was enough to deplete the card's value. In accordance with the terms of "City Buck" card, the Bank does not reimburse any amount in case of the fraudulent purchases. How much fraud protection can Tommy count on? $311. $110. $0. $11.

$0

Use the following information for to answer the question (it will be helpful to create an amortization table).Tony borrows $1700.00 at an annual interest rate of 8.4%. He receives the loan on the first day of the current month and will make monthly payments on the first day of each of the following months until the loan is repaid after 24 months. The monthly loan payment is $77.20.On Tony's 24th (last) loan payment of $77.20, how much of the payment is for interest? $77.20. $0.00. $0.54. $76.66.

$0.54.

Use the following information for to answer the question (it will be helpful to create an amortization table).Tony borrows $2800 at an annual interest rate of 6.0%. He receives the loan on the first day of the current month and will make monthly payments on the first day of each of the following months until the loan is repaid after 24 months (2-year loan). The monthly loan payment is $124.10.How much interest will Tony pay as part of the first loan payment? $110.10. $124.10. $16.80. $14.00.

$14.00.

Tula has a $1500 credit card balance that she revolves month to month. What is her minimum monthly payment if the credit card company calculates the payment based on 4% of the outstanding balance? $600. $6. $60. $720.

$60

Use the following check register for the month of April and the monthly account summary to answer the following question: What is the reconciled balance in the checking account? $700 $970 $1043 $965

$965

Which of the following is closest to the actual average interest rate charged by credit card issuers? 12%. 19%. 5%. 9%.

19%

When Ann was traveling outside the United States, she found the perfect souvenir. Unfortunately, when she went to make the purchase with her debit card, the transaction was denied. This happened because Ann had only $200 in her account, and the souvenir cost $300. Ann was disappointed and regretted having to pass on her purchase. What could Ann have done before her trip to ensure that she could spend more than what was in her account? Asked her bank to allow a direct debit for international purchases. Added fraud protection to her account. Added overdraft protection transfers from her savings account to her checking account. Traded her debit card for a prepaid card.

Added overdraft protection transfers from her savings account to her checking account.

What will likely happen if Terry Ann fails to make a payment on her secured credit card? The bank or credit union will deduct the payment directly from Terry Ann's account. All of the answer choices are correct. The bank or credit union may cancel the card. The bank or credit union will deduct any fees directly from Terry Ann's account.

All of the answer choices are correct

Which of the following events can lead to a lower credit score? Filing for bankruptcy. Making one or more late payments. Frequently moving residences. All of the answer choices are correct.

All of the answer choices are correct.

Which of the following is not used to estimate a credit score? Marital status. Age. New credit inquiries. Both age and marital status are correct.

Both age and marital status are correct.

Which of the following borrowing purposes will most likely lead to increased earning potential for the individual borrowing money? Borrowing for education. Borrowing for a car. Borrowing for a wedding ring. Both borrowing for a car and borrowing for education are correct.

Both borrowing for a car and borrowing for education are correct.

Physical checks require a number of elements to allow someone to cash a check issued by one bank at another bank. Which of the following is not part of the payment trail for transferred funds? Both account number and date of check are correct. Bank routing number. Account number. Date of check.

Date of Check

Which of the following types of loans are always fixed installment loans? Auto loan. Mortgage (home loan). Education loans. Each of the answer choices can be either fixed or variable installment loans.

Each of the answer choices can be either fixed or variable installment loans.

Place the following Automated Clearing House or hybrid process steps in order: I.Sign check.II.Record check information with device.III.Deduct payment after bank receives information.IV.Merchant system sends check data to ACH operator. I, II, IV, III. I, II, III, IV. III, II, IV, I. II, I, III, IV.

I, II, IV, III.

Which of the following events will trigger the creation of a credit report? I.Declaring bankruptcy.II.Taking out a student loan.III.Borrowing money from a company.IV.Marriage or divorce. I, II, and III only. I and III only. II and III only. I, II, III, and IV.

I, II, and III only.

How many times per year can you request a free copy of your credit report from each of the primary credit bureaus? As many times as you want. Two times. Three times. One time.

One time.

Kaylee received a check from her grandmother. She wants to make sure that the check gets deposited into her account, so she endorses the check as follows: For Deposit Only, Account 7864389876, Kaylee Jones. This is an example of what type of endorsement? Special endorsement. Restricted endorsement. Certified endorsement Blank endorsement.

Restricted endorsement.

Which of the following credit inputs is the least important when a FICO score is developed? Payment history. Amount of credit. Length of credit history. Types of credit.

Types of credit.

Which of the following statements is true regarding credit cards? You must make more than the monthly minimum payment to pay off a credit card balance over a short period of time. You may not pay off a credit card balance unless you receive approval from the credit card company. If you pay off a credit card balance early, you will pay a penalty APR. You may pay off a credit card balance at any time without penalty.

You may pay off a credit card balance at any time without penalty.

A credit bureau is a company that maintains the following information on individuals': housing. both housing and credit. credit. neither housing or credit.

both housing and credit.

Individuals with low credit scores are more likely to be: charged higher insurance premiums. charged higher interest rates on loans and pay higher insurance premiums. charged higher interest rates on loans. offered new credit cards.

charged higher interest rates on loans and pay higher insurance premiums.

Most of the information contained within a credit report is reported to credit bureaus by: federal and state government agencies. employers. individuals. creditors.

creditors

Banks close about five million checking accounts every year. It can be difficult for someone with a closed account to reestablish an account at a later time. All of the following factors are likely to prompt a bank or credit union to close a checking account except: making several deposits and withdrawals every month. consistently mismanaging the account. being unable to pay an overdraft fee. writing bad checks.

making several deposits and withdrawals every month.

One method to verify a debit-card transaction is through the use of a: public interest number. personal identification number. personal interest number. public identification number.

personal identification number.

Martie regularly flies Blue Sky Airlines. The airline offers a Visa® cobranded credit card that allows cardholders to earn points toward free flights. Cardholders also get to check one bag for free on each flight. The Blue Sky Airlines credit card is an example of a: travel and entertainment card. reward card. prepaid card. co-signed card.

reward card