nterest rates charged for unsecured loans are generally lower than rates charged for secured loans.
Group of answer choices

True

False
 
Flag question: Question 2
Question 23.33 pts
The Fair Credit Billing Act helps consumers correct credit card billing mistakes.
Group of answer choices

True

False
 
Flag question: Question 3
Question 33.33 pts
Few people can pay for a home without borrowing.
Group of answer choices

True

False
 
Flag question: Question 4
Question 43.33 pts
The Fair Credit Reporting Act of 1971 gave consumers a way to check their credit reports.
Group of answer choices

True

False
 
Flag question: Question 5
Question 53.33 pts
Credit cards are usually one of the most expensive forms of borrowing.
Group of answer choices

True

False
 
Flag question: Question 6
Question 63.33 pts
Consumers should take every credit card that is offered to them so they will have a variety of choices.
Group of answer choices

True

False
 
Flag question: Question 7
Question 73.33 pts
The Equal Credit Opportunity Act makes it illegal to refuse to grant credit on the basis of race, color, religion, national origin, gender, marital status, or age.
Group of answer choices

True

False
 
Flag question: Question 8
Question 83.33 pts
Married couples should have credit in only one of their names.
Group of answer choices

True

False
 
Flag question: Question 9
Question 93.33 pts
On a revolving charge account, the more slowly you reduce the balance, the less interest you will pay overall.
Group of answer choices

True

False
 
Flag question: Question 10
Question 103.33 pts
ATM machines enable you to receive a cash advance and add it to your credit card bill.
Group of answer choices

True

False
 
Flag question: Question 11
Question 113.33 pts
A measure of your creditworthiness is your ____.
Group of answer choices

credit debt

credit listing

credit rating

credit limit
 
Flag question: Question 12
Question 123.33 pts
A loan that is backed by something of value pledged to insure payment is a ____.
Group of answer choices

secured loan

signature loan

cosigned loan

nonsecured loan
 
Flag question: Question 13
Question 133.33 pts
Madison's credit card payment is due on the 25th of every month. Because the 25th falls between two pay periods, she is often unable to make the regular payment on time. The credit card company charges her $25 each time her payment is late. This charge is known as ____.
Group of answer choices

a monthly fee

a finance charge

interest

a penalty
 
Flag question: Question 14
Question 143.33 pts
The time between the billing date and the payment due date, when no interest is charged, is the ____.
Group of answer choices

grace period

interest period

credit period

free period
 
Flag question: Question 15
Question 153.33 pts
James and Vanessa both work and own their home. They want to borrow $15,000 to buy a car to give to their daughter as a college graduation present. What factors will lenders consider in computing James and Vanessa's credit rating when assessing their car loan application?
Group of answer choices

current debt

number of credit cards

all of these answers

payment history
 
Flag question: Question 16
Question 163.33 pts
Troy was recently denied credit at a local furniture store. A week later he received a letter from the furniture store identifying the credit bureau that supplied the information used in making its lending decision. What law requires that Troy and other consumers be told the source of any credit reports used when they are denied credit?
Group of answer choices

Fair Credit Billing Act

Truth in Lending Act

Fair Credit Reporting Act

Consumer Credit Reporting Reform Act
 
Flag question: Question 17
Question 173.33 pts
Last year, Gretchen signed up to receive several credit cards. After she received them, she immediately began using them to purchase books, clothes, jewelry, a sound system, a DVD player, and a television set. After four months, she lost her job. Gretchen was far in debt and had no income. She completed a legal process through which she surrendered her property to the court. In exchange, the court ordered that she was no longer responsible for her debts. This process is known as ____.
Group of answer choices

refinancing

bankruptcy

credit counseling

debt consolidation
 
Flag question: Question 18
Question 183.33 pts
A legal process in which people who cannot pay their debts surrender most of their property is called ____.
Group of answer choices

acceleration clause

nullification

bankruptcy

foreclosure
 
Flag question: Question 19
Question 193.33 pts
Suppose you are renting a living room chair for $9.95 per week. After you rent it for 40 weeks, the rent-to-own company says you will own the chair. If you make all 40 payments, how much will the chair cost you?
Group of answer choices

$300

$350

$412

$398
 
Flag question: Question 20
Question 203.33 pts
When Calvin and Gloria financed a new car loan at their credit union, they were given extensive printed information about the specifics of the loan. This information included the total cost of the loan, including all interest and fees. This total cost they will pay for the loan is known as the ____.
Group of answer choices

credit cost

interest rate

finance charge

principal
 
Flag question: Question 21
Question 213.33 pts
While attending college, Caleb had a full-time job. During those years, he lived at the same address and always paid his rent and utilities on time. Lenders would look at his lifestyle and find him to be responsible. They would grant him credit based on Caleb's ____.
Group of answer choices

capacity

character

capital

collateral
 
Flag question: Question 22
Question 223.33 pts
The total cost a borrower must pay for a loan, including all interest and fees, is the ____.
Group of answer choices

finance charge

principle

over charge

interest
 
Flag question: Question 23
Question 233.33 pts
Mazher has an account that allows him to charge up to $5,000. Under the credit agreement, he is not required to pay the balance in full. Mazher often chooses to make the minimum payment, carrying the remaining balance forward to the next month. What type of account does Mazher have?
Group of answer choices

installment loan

revolving charge account

secured account

regular charge account
 
Flag question: Question 24
Question 243.33 pts
If you want to get cash for personal property such as jewelry or a TV, then you need to see a ____.
Group of answer choices

credit bureau

loan officer

banker

pawnbroker
 
Flag question: Question 25
Question 253.33 pts
Orestes was hospitalized for two months. During this time, he was unable to work. In addition to his lost income, he owes over $12,000 in medical expenses that were not covered by his health insurance. As a result, he could not pay many of his credit cards and other loans on time. Debt collection agencies began calling him regularly. One debt collector even followed him to a grocery store and embarrassed him in front of other people. What law is intended to prevent debt collection agencies from using such abusive practices?
Group of answer choices

Equal Credit Opportunity Act

Truth in Lending Act

Fair Debt Collections Practices Act

Consumer Credit Reporting Reform Act
 
Flag question: Question 26
Question 263.33 pts
I-chen Lee has a charge account at a department store. The account allows her to make charges throughout the month. She will not pay any interest because she must pay the balance in full by the 15th day of the next month. What type of account does I-chen Lee have?
Group of answer choices

revolving charge account

debit card account

regular charge account

installment loan
 
Flag question: Question 27
Question 273.33 pts
A company that collects information about consumers' credit history and sells it to lenders is a ____.
Group of answer choices

credit bureau

credit board

bank

credit union
 
Flag question: Question 28
Question 283.33 pts
Recently Felix purchased a home entertainment system. A finance company granted Felix the credit necessary to make the purchase. Felix signed the loan contract and had the system delivered to his home. For eight months, Felix made the regularly scheduled payments on the loan. In the ninth month, however, he went out of town and forgot to make his loan payment on time. When he returned from the trip, Felix received a letter from the finance company demanding payment in full or the return of the entire system. What did Felix's credit contract include?
Group of answer choices

acceleration clause

balloon payment

debtor's clause

deceleration clause
 
Flag question: Question 29
Question 293.33 pts
Which of the following are sources of credit cards?
Group of answer choices

MasterCard

VISA

American Express

All of these answers
 
Flag question: Question 30
Question 303.33 pts
The maximum amount you are allowed to charge on your account is the ____.
Group of answer choices

credit limit

account ceiling

quota

term
 say each answer no explain