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Exam 6: Introduction to Consumer Credit

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Question 31

Multiple Choice

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Which of the following is not a valid reason for using credit?

A) to pay for a medical emergency
B) to purchase a car for a homemaker returning to the workforce
C) to purchase an item now for less money than it will cost later
D) to pay for everyday living expenses
E) to pay for a college education

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Question 32

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Paul Carter is applying for a loan from a bank.The bank is concerned because Paul is an airline pilot for United Airlines.The bank thinks that Paul may be laid off in the near future.Which one of the 5 Cs of credit is the bank concerned with?

A) Character
B) Capacity
C) Capital
D) Collateral
E) Conditions

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Question 33

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Which one of the following is not a source that provides data to credit bureaus?

Department stores and gasoline companies are good places to obtain your first credit card.

When resolving a billing dispute,a creditor must either tell you why the bill is correct or:

If someone has stolen your identity,the Federal Trade Commission recommends that you contact the fraud departments of each of the three major credit bureaus.

College students are not a prime target for credit card issuers.

If your monthly net income is $1,500,what should be your maximum amount spent on credit payments?

If you have declared personal bankruptcy,then this fact may be reported by credit bureaus for ____________ years.

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?

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

Co-branded credit cards:

Which federal consumer credit law requires issuers to display on monthly statements how long it would take to pay off the existing balance and the total interest cost if the consumer paid only the minimum due?

Most of the information in your credit file may be reported for only ______ years.

When you complain about your billing error,the creditor must acknowledge your letter within ____________ days.

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

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

Approximately how many credit card users would be classified as "convenience users" who generally pay off their balances in full each month?

With closed-end credit,generally the seller holds the title to the merchandise until the payments have been completed.

The borrower's attitude toward his or her credit obligations is called: