Borrowing/Credit Question Preview (ID: 22295)


Borrowing/Credit Review. TEACHERS: click here for quick copy question ID numbers.

Closed-end credit is also known as revolving credit.
a) True
b) False
c)
d)

“Balance transfer fees” and “cash advance fees” are both examples of Transaction Fees.
a) True
b) False
c)
d)

The trade-off to no credit history check is lower interest rates and fees.
a) True
b) False
c)
d)

A borrower is a person or organization that makes funds available for others to borrow.
a) True
b) False
c)
d)

Public information on your credit report includes things like tax leins, bankruptcy, and foreclosures.
a) True
b) False
c)
d)

The three credit reporting agencies are Equifax, TransUnion, and Experian.
a) True
b) False
c)
d)

Credit availability depends on lenders trusting that you will pay back the loan as agreed.
a) True
b) False
c)
d)

A Schumer Box helps you to closely compare credit card offers by displaying the information in plain English in an easy-to-read table.
a) True
b) False
c)
d)

It is important to read your monthly credit card statement to check for errors or unauthorized charges.
a) True
b) False
c)
d)

A cash advance is when you use your credit card at an ATM to withdraw cash.
a) True
b) False
c)
d)

Paying the minimum payment on a credit card every month will:
a) pay a large percentage of the total balance owed every month
b) make the final amount paid substantially higher than the amount initially charged to the card
c) allow the cardholder to avoid paying any interest charges
d) help the cardholder create a plan for paying off a credit card in a decent amount of time

Sarah will turn 18 next month. She plans to apply for a credit card. Which statement is true?
a) Sarah cannot obtain a credit card until she turns 21.
b) Sarah will need to use a special application since she is under 25.
c) Sarah can only obtain a credit card by filling out an application as long as she waits until after her 18th birthday.
d) Sarah can only obtain a credit card if she has a co-signer or proof of sufficient income to make the required payments.

When may a person view his/her credit report for free?
a) If a person has sufficient financial resources
b) A person may not review his/her credit report
c) Once a year, from each of the three main credit reporting agencies
d) At any time and an unlimited number of times

Which of the following is NOT included in an individual’s credit report?
a) Current and past addresses
b) Account balances
c) Bankruptcies and foreclosures
d) Medical information

The maximum amount that you can borrow at any one time
a) loan term
b) credit limit
c) service credit
d) microloans

known as 'reorganization', when a repayment plan is created to pay back a portion of your debt over a 3-5 year period
a) Chapter 7
b) Chapter 8
c) Chapter 11
d) Chapter 13

A quick guideline for how much debt you should reasonably have.
a) 40-20
b) 20-10
c) 10-5
d) 30-10

When money is taken directly from your wages to pay back debts.
a) apprehend
b) extraction
c) direct credit
d) garnish

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