Question 1

The credit bureau cannot charge you a disclosure fee if you ask to see your file within ______ days of being notified of a denial based on a credit report.

Accepted Answer

A)  10
B)  20
C)  30
D)  40
E)  60F) All of the above
G) C) and D)

Question 2

Most economists do not recognize consumer credit as a major force in the American economy.

Accepted Answer

A) True 
 B)False

Question 3

You may not be denied credit because you receive Social Security or public assistance.

Accepted Answer

A) True 
 B)False

Question 4

If you are a woman,a creditor must:

Accepted Answer

A)  require a spouse to cosign a loan.
B)  ask about your birth control practices or family plans.
C)  consider whether you have a telephone listing in your own home.
D)  refuse individual credit in your own name.
E)  consider income from your part-time employment.F) A) and E)
G) A) and D)

Question 5

Which federal law regulates the use of credit reports,requires the deletion of obsolete information,and gives you access to your file?

Accepted Answer

A)  Truth in Lending Act of 1969
B)  Fair Credit Billing Act of 1975
C)  Equal Credit Opportunity Act of 1975
D)  Fair Credit Reporting Act of 1971
E)  Fair Debit Collection Practices Act of 1978F) B) and D)
G) A) and D)

Question 6

The borrower's financial ability to meet credit obligations is called:

Accepted Answer

A)  capacity.
B)  character.
C)  capital.
D)  collateral.
E)  conditions.F) All of the above
G) C) and D)

Question 7

Michael Flowers believes that his credit card company has made an error in its monthly statement to him.Which consumer protection law specifies procedures he can use to dispute this monthly statement?

Accepted Answer

A)  Fair Credit Reporting Act
B)  Fair Credit Billing Act
C)  Equal Credit Opportunity Act
D)  Fair Debt Collection Practices Act
E)  Truth in Lending ActF) All of the above
G) C) and E)

Question 8

A loan officer is examining your income and the amount of your existing debt payments in deciding whether to make a loan to you today.Which aspect of the 5 Cs of lending is the loan officer most likely looking at?

Accepted Answer

A)  character
B)  capacity
C)  capital
D)  collateral
E)  conditionsF) A) and D)
G) D) and E)

Question 9

Mike Cook has been receiving calls at work every two hours from a collection company that is trying to collect a past due loan from him.He believes this is harassment and that the collections company is not allowed to do this.Which consumer protection law provides protection from this type of harassment?

Accepted Answer

A)  (
A)  Fair Credit Reporting Act
B)  Fair Credit Billing Act
C)  Equal Credit Opportunity Act
D)  Fair Debt Collection Practices Act
E)  Truth in Lending ActF) A) and D)
G) A) and B)

Question 10

Maryann Lawrence wants to get a loan in just her name.She knows the creditor cannot:

Accepted Answer

A)  refuse her credit if she is creditworthy
B)  consider income from her part-time job
C)  consider the payment history of all her joint accounts
D)  consider alimony payments she receives from her ex-husband
E)  consider child support payments she receives from her ex-husbandF) A) and B)
G) B) and D)

Question 11

Jim Roy visits the doctor for his annual check-up which costs $85.He is billed for this at the end of the month.What type of credit did Jim use?

Accepted Answer

A)  installment sales credit
B)  installment cash credit
C)  single lump sum credit
D)  revolving credit
E)  incidental creditF) A) and D)
G) A) and C)

Question 12

If you have a complaint about consumer credit,you should first:

Accepted Answer

A)  try to solve your problem directly with the creditor.
B)  contact your attorney.
C)  file a complaint with the Better Business Bureau.
D)  report it to the state consumer protection agency.
E)  complain to the Federal Reserve Bank in your district.F) None of the above
G) C) and D)

Question 13

Which federal law limits a cardholder's liability for unauthorized use of a card to $50?

Accepted Answer

A)  Truth in Lending Act
B)  Fair Credit Reporting Act
C)  Fair Credit Billing Act
D)  Equal Credit Opportunity Act
E)  Fair Debt Collection Practices ActF) C) and D)
G) A) and D)

Question 14

Your friends and neighbors can get credit information about you.

Accepted Answer

A) True 
 B)False

Question 15

The debt payments-to-income ratio is:

Accepted Answer

A)  calculated by dividing total liabilities by net worth.
B)  calculated by dividing monthly debt payments (not including house payments) by net monthly income.
C)  determined by dividing your assets by your liabilities.
D)  a useless ratio for determining your credit capacity.
E)  rarely used by creditors in determining credit worthiness.F) A) and B)
G) C) and E)

Question 16

Credit when effectively used,can help you have more and enjoy more.

Accepted Answer

A) True 
 B)False

Question 17

Gordon Carey uses his Visa card to purchase a new digital camera and lens.What type of credit did Gordon use?

Accepted Answer

A)  installment sales credit
B)  installment cash credit
C)  single lump sum credit
D)  revolving credit
E)  incidental creditF) A) and C)
G) A) and E)

Question 18

There are very few valid reasons for using credit.

Accepted Answer

A) True 
 B)False

Question 19

When did installment credit explode on the American scene?

Accepted Answer

A)  with the advent of the automobile in the early 1900s
B)  with the advent of television in the late 1940s
C)  just after World War II
D)  during the recession of the 1950s
E)  during the inflation of the 1970sF) A) and B)
G) A) and C)

Question 20

If your debit card is lost or stolen,you must work directly with the issuer.

Accepted Answer

A) True 
 B)False

Exam 6: Introduction to Consumer Credit

Correct Answer
verified

Most economists do not recognize consumer credit as a major force in the American economy.

Correct Answer
verified

The debt payments-to-income ratio is:

Correct Answer
verified

The borrower's financial ability to meet credit obligations is called:

Correct Answer
verified

If your debit card is lost or stolen,you must work directly with the issuer.

Correct Answer
verified

You may not be denied credit because you receive Social Security or public assistance.

Correct Answer
verified

There are very few valid reasons for using credit.

Correct Answer
verified

Michael Flowers believes that his credit card company has made an error in its monthly statement to him.Which consumer protection law specifies procedures he can use to dispute this monthly statement?

Correct Answer
verified

Maryann Lawrence wants to get a loan in just her name.She knows the creditor cannot:

Correct Answer
verified

The credit bureau cannot charge you a disclosure fee if you ask to see your file within ______ days of being notified of a denial based on a credit report.

Correct Answer
verified

Which federal law limits a cardholder's liability for unauthorized use of a card to $50?

Correct Answer
verified

When did installment credit explode on the American scene?

Correct Answer
verified

Which federal law regulates the use of credit reports,requires the deletion of obsolete information,and gives you access to your file?

Correct Answer
verified

A loan officer is examining your income and the amount of your existing debt payments in deciding whether to make a loan to you today.Which aspect of the 5 Cs of lending is the loan officer most likely looking at?

Correct Answer
verified

If you have a complaint about consumer credit,you should first:

Correct Answer
verified

Gordon Carey uses his Visa card to purchase a new digital camera and lens.What type of credit did Gordon use?

Correct Answer
verified

Your friends and neighbors can get credit information about you.

Correct Answer
verified

Credit when effectively used,can help you have more and enjoy more.

Correct Answer
verified

Jim Roy visits the doctor for his annual check-up which costs $85.He is billed for this at the end of the month.What type of credit did Jim use?

Correct Answer
verified

If you are a woman,a creditor must:

Correct Answer
verified

Exam 6: Introduction to Consumer Credit

Correct AnswerverifiedShow Answer

Most economists do not recognize consumer credit as a major force in the American economy.

Correct AnswerverifiedShow Answer

The debt payments-to-income ratio is:

Correct AnswerverifiedShow Answer

The borrower's financial ability to meet credit obligations is called:

Correct AnswerverifiedShow Answer

If your debit card is lost or stolen,you must work directly with the issuer.

Correct AnswerverifiedShow Answer

You may not be denied credit because you receive Social Security or public assistance.

Correct AnswerverifiedShow Answer

There are very few valid reasons for using credit.

Correct AnswerverifiedShow Answer

Michael Flowers believes that his credit card company has made an error in its monthly statement to him.Which consumer protection law specifies procedures he can use to dispute this monthly statement?

Correct AnswerverifiedShow Answer

Maryann Lawrence wants to get a loan in just her name.She knows the creditor cannot:

Correct AnswerverifiedShow Answer

The credit bureau cannot charge you a disclosure fee if you ask to see your file within ______ days of being notified of a denial based on a credit report.

Correct AnswerverifiedShow Answer

Which federal law limits a cardholder's liability for unauthorized use of a card to $50?

Correct AnswerverifiedShow Answer

When did installment credit explode on the American scene?

Correct AnswerverifiedShow Answer

Which federal law regulates the use of credit reports,requires the deletion of obsolete information,and gives you access to your file?

Correct AnswerverifiedShow Answer

A loan officer is examining your income and the amount of your existing debt payments in deciding whether to make a loan to you today.Which aspect of the 5 Cs of lending is the loan officer most likely looking at?

Correct AnswerverifiedShow Answer

If you have a complaint about consumer credit,you should first:

Correct AnswerverifiedShow Answer

Gordon Carey uses his Visa card to purchase a new digital camera and lens.What type of credit did Gordon use?

Correct AnswerverifiedShow Answer

Your friends and neighbors can get credit information about you.

Correct AnswerverifiedShow Answer

Credit when effectively used,can help you have more and enjoy more.

Correct AnswerverifiedShow Answer

Jim Roy visits the doctor for his annual check-up which costs $85.He is billed for this at the end of the month.What type of credit did Jim use?

Correct AnswerverifiedShow Answer

If you are a woman,a creditor must:

Correct AnswerverifiedShow Answer

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