Question 1

Describe the federal law that protects you from billing mistakes/errors.

Accepted Answer

The Fair Credit Billing Act (FCBA),passe...

Question 2

Which federal consumer credit law allows consumers to withhold payment for faulty or defective goods or services when purchased with a credit card?

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) All of the above
G) C) and E)

Question 3

If you dispute the accuracy of information in your credit file:

Accepted Answer

A)  you should sue the credit bureau.
B)  the credit bureau has no power to change it.
C)  the credit bureau must reinvestigate and modify or remove inaccurate data.
D)  you must wait at least six months prior to launching an investigation.
E)  you have no means of correcting it.F) C) and D)
G) B) and C)

Question 4

With open-end credit,you pay back one-time loans in a specified period of time in payments of equal amounts.

Accepted Answer

A) True 
 B)False

Question 5

Which federal consumer credit law starts all credit applicants off on the same footing with factors that may not be used to discriminate against you?

Accepted Answer

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

Question 6

Which federal consumer credit law requires credit reporting agencies to send the consumer's version of a disputed item to certain businesses or creditors?

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) All of the above
G) B) and C)

Question 7

The Consumer Financial Protection Bureau receives more consumer complaints about credit bureaus than about any other industry.

Accepted Answer

A) True 
 B)False

Question 8

Jennifer Rogers needs a loan to purchase a new car.She knows the creditor must:

Accepted Answer

A)  ask about her children.
B)  consider whether she has a telephone.
C)  evaluate her on the same basis as applicants who are male.
D)  require her to find a cosigner for the loan.
E)  ask about her exercise practices.F) None of the above
G) A) and E)

Question 9

According to a recent survey,how many U.S.households carry one or more credit cards?

Accepted Answer

A)  4 out of 10
B)  5 out of 10
C)  6 out of 10
D)  7 out of 10
E)  9 out of 10F) A) and B)
G) A) and D)

Question 10

Samantha Prescott knows that credit companies must evaluate her on the same basis as a borrower who is male.Which consumer protection law guarantees her this right?

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) A) and B)
G) C) and E)

Question 11

The best way to maintain your credit standing is to:

Accepted Answer

A)  use credit sparingly.
B)  pay cash for your purchases.
C)  repay your debts on time.
D)  declare a Chapter 7 bankruptcy.
E)  use as many credit cards as you can.F) A) and E)
G) B) and E)

Question 12

Paul Phillips has checked his credit report and believes there is an error in it.Which consumer protection law specifies that he has the right to have errors in his credit report investigated?

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) B) and E)
G) B) and D)

Question 13

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)  Closed-end credit
E)  Incidental creditF) C) and D)
G) All of the above

Question 14

The information in your credit report is used by the credit bureau to calculate your:

Accepted Answer

A)  debt to equity ratio.
B)  FICO credit score.
C)  debt payment to income ratio.
D)  liquidity ratio.
E)  long term capitalization ratio.F) A) and E)
G) A) and B)

Question 15

Experts suggest that you spend no more than ________ percent of your net income (after-tax) on consumer credit payments.

Accepted Answer

A)  10
B)  20
C)  30
D)  40
E)  50F) A) and D)
G) All of the above

Question 16

In the 5 Cs of credit,capital refers to your assets or net worth.

Accepted Answer

A) True 
 B)False

Question 17

The debt-to-equity ratio is calculated by dividing your monthly debt payments by your net worth.

Accepted Answer

A) True 
 B)False

Question 18

Which federal consumer credit law prohibits abusive,deceptive,and unfair practices by debt collectors?

Accepted Answer

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

Question 19

Although credit allows more immediate satisfaction of needs and desires,it does not increase total purchasing power.

Accepted Answer

A) True 
 B)False

Question 20

Dave's net take-home pay per month is $2,100.What is the maximum dollar amount of debt payments,excluding a home mortgage,he should have?

Accepted Answer

A)  $840
B)  $420
C)  $315
D)  $210
E)  $0F) None of the above
G) A) and B)

Exam 6: Introduction to Consumer Credit

According to a recent survey,how many U.S.households carry one or more credit cards?

Correct AnswerverifiedShow Answer

Samantha Prescott knows that credit companies must evaluate her on the same basis as a borrower who is male.Which consumer protection law guarantees her this right?

Correct AnswerverifiedShow Answer

Which federal consumer credit law allows consumers to withhold payment for faulty or defective goods or services when purchased with a credit card?

Correct AnswerverifiedShow Answer

Dave's net take-home pay per month is $2,100.What is the maximum dollar amount of debt payments,excluding a home mortgage,he should have?

Correct AnswerverifiedShow Answer

With open-end credit,you pay back one-time loans in a specified period of time in payments of equal amounts.

Correct AnswerverifiedShow Answer

Describe the federal law that protects you from billing mistakes/errors.

Correct AnswerverifiedThe Fair Credit Billing Act (FCBA),passe...View AnswerShow Answer

Experts suggest that you spend no more than ________ percent of your net income (after-tax) on consumer credit payments.

Correct AnswerverifiedShow Answer

If you dispute the accuracy of information in your credit file:

Correct AnswerverifiedShow Answer

Although credit allows more immediate satisfaction of needs and desires,it does not increase total purchasing power.

Correct AnswerverifiedShow Answer

Jennifer Rogers needs a loan to purchase a new car.She knows the creditor must:

Correct AnswerverifiedShow Answer

In the 5 Cs of credit,capital refers to your assets or net worth.

Correct AnswerverifiedShow Answer

The debt-to-equity ratio is calculated by dividing your monthly debt payments by your net worth.

Correct AnswerverifiedShow Answer

Which federal consumer credit law starts all credit applicants off on the same footing with factors that may not be used to discriminate against you?

Correct AnswerverifiedShow Answer

Which federal consumer credit law prohibits abusive,deceptive,and unfair practices by debt collectors?

Correct AnswerverifiedShow Answer

The information in your credit report is used by the credit bureau to calculate your:

Correct AnswerverifiedShow Answer

Which federal consumer credit law requires credit reporting agencies to send the consumer's version of a disputed item to certain businesses or creditors?

Correct AnswerverifiedShow Answer

The Consumer Financial Protection Bureau receives more consumer complaints about credit bureaus than about any other industry.

Correct AnswerverifiedShow Answer

The best way to maintain your credit standing is to:

Correct AnswerverifiedShow Answer

Paul Phillips has checked his credit report and believes there is an error in it.Which consumer protection law specifies that he has the right to have errors in his credit report investigated?

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

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The Fair Credit Billing Act (FCBA),passe...
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