Question 1

If you are an Ontario resident and you have declared personal bankruptcy for the first time,that fact may be reported by credit bureaus for ____________ years.

Accepted Answer

A)   5
B)   7
C)   12
D)   20
E)   25F) A) and E)
G) C) and D)

Question 2

Cobranding is the linking of a credit card with a business trade name offering "points" or premiums toward the purchase of a product or service.

Accepted Answer

A) True 
 B)False

Question 3

A common example of a consumer loan is:

Accepted Answer

A)   a credit card issued by a department store.
B)   a credit card issued by VISA or MasterCard.
C)   using overdraft protection at a bank.
D)   using a cashier's check to pay for a purchase.
E)   a mortgage loan.F) B) and C)
G) A) and D)

Question 4

A good example of an open-end credit is

Accepted Answer

A)   the use of a bank credit card to make a purchase.
B)   the mortgage loan from a savings and loan institution.
C)   automobile loan from a credit union.
D)   installment loan from a furniture store.
E)   installment loan for purchasing a major appliance.F) B) and C)
G) A) and E)

Question 5

Incidental credit is a credit arrangement that has no extra costs and no specific repayment plan.

Accepted Answer

A) True 
 B)False

Question 6

Your credit report may be issued only if this occurs with your consent.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is not an example of a consumer loan?

Accepted Answer

A)   installment loan
B)   convenience credit
C)   revolving credit
D)   line of credit.
E)   bank card creditF) C) and E)
G) B) and D)

Question 8

A term that refers to the borrower's assets or net worth is called

Accepted Answer

A)   capacity.
B)   character.
C)   capital.
D)   collateral.
E)   conditions.F) A) and D)
G) A) and C)

Question 9

What can you do if your identity is stolen?

Accepted Answer

If your identity is stolen,take three ac...

Question 10

What are the two general rules of measuring credit capacity?

Accepted Answer

The two general rules of measuring credi...

Question 11

Which of these is not a financing option for the purchase of a car?

Accepted Answer

A)   factory financing
B)   line of credit
C)   conditional sales contract
D)   installment loan
E)   cashF) None of the above
G) A) and D)

Question 12

Debt-to-equity ratio is

Accepted Answer

A)   a useless ratio for determining your credit capacity.
B)   calculated by dividing monthly debt payments by net monthly income.
C)   determined by dividing your assets by liabilities.
D)   calculated by dividing total liabilities by net worth.
E)   rarely used by creditors in determining credit worthiness.F) None of the above
G) C) and D)

Question 13

Using a credit card,such as Visa or MasterCard is an example of closed-end credit.

Accepted Answer

A) True 
 B)False

Question 14

What can be included in your credit report?

Accepted Answer

A)   race
B)   nationality
C)   sex
D)   employer
E)   religionF) A) and B)
G) C) and D)

Question 15

Credit should not be considered a substitute for cash.

Accepted Answer

A) True 
 B)False

Question 16

Provincial legislation regarding consumer reporting agencies regulate the type of information that can appear in a credit report and protects the consumer's right not to suffer from false information.

Accepted Answer

A) True 
 B)False

Question 17

Financing from car dealers in affiliation with car manufacturers is called a conditional sales contract.

Accepted Answer

A) True 
 B)False

Question 18

If your credit application is denied,you

Accepted Answer

A)   can sue the credit rating agency.
B)   can file a complaint against the merchant.
C)   don't have any rights provided by law.
D)   should ask to know specifically why.
E)   can reapply for credit after 30 days.F) All of the above
G) B) and C)

Question 19

A credit arrangement that has no extra costs and no specific repayment plan is called

Accepted Answer

A)   installment sales credit.
B)   incidental credit.
C)   line of credit.
D)   single lump-sum credit.
E)   revolving check credit.F) B) and D)
G) A) and D)

Question 20

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

Accepted Answer

A)   The Bank of Canada
B)   The Canada Customs and Revenue Agency
C)   Your financial institution
D)   A debit bureau
E)   A credit bureauF) B) and D)
G) B) and C)

Exam 5: Consumer Credit: Advantages, Disadvantages, Sources, and Costs

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

Correct AnswerverifiedShow Answer

A good example of an open-end credit is

Correct AnswerverifiedShow Answer

Incidental credit is a credit arrangement that has no extra costs and no specific repayment plan.

Correct AnswerverifiedShow Answer

If you are an Ontario resident and you have declared personal bankruptcy for the first time,that fact may be reported by credit bureaus for ____________ years.

Correct AnswerverifiedShow Answer

If your credit application is denied,you

Correct AnswerverifiedShow Answer

Which of the following is not an example of a consumer loan?

Correct AnswerverifiedShow Answer

Cobranding is the linking of a credit card with a business trade name offering "points" or premiums toward the purchase of a product or service.

Correct AnswerverifiedShow Answer

A credit arrangement that has no extra costs and no specific repayment plan is called

Correct AnswerverifiedShow Answer

Using a credit card,such as Visa or MasterCard is an example of closed-end credit.

Correct AnswerverifiedShow Answer

What can you do if your identity is stolen?

Correct AnswerverifiedIf your identity is stolen,take three ac...View AnswerShow Answer

Your credit report may be issued only if this occurs with your consent.

Correct AnswerverifiedShow Answer

A common example of a consumer loan is:

Correct AnswerverifiedShow Answer

Credit should not be considered a substitute for cash.

Correct AnswerverifiedShow Answer

What are the two general rules of measuring credit capacity?

Correct AnswerverifiedThe two general rules of measuring credi...View AnswerShow Answer

Which of these is not a financing option for the purchase of a car?

Correct AnswerverifiedShow Answer

Provincial legislation regarding consumer reporting agencies regulate the type of information that can appear in a credit report and protects the consumer's right not to suffer from false information.

Correct AnswerverifiedShow Answer

A term that refers to the borrower's assets or net worth is called

Correct AnswerverifiedShow Answer

Financing from car dealers in affiliation with car manufacturers is called a conditional sales contract.

Correct AnswerverifiedShow Answer

What can be included in your credit report?

Correct AnswerverifiedShow Answer

Debt-to-equity ratio is

Correct AnswerverifiedShow Answer

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If your identity is stolen,take three ac...
View Answer

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The two general rules of measuring credi...
View Answer

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