Multiple Choice
Identify the
choice that best completes the statement or answers the question.
|
|
|
1.
|
The three C’s of credit include all of the following EXCEPT…
a. | capacity. | c. | character. | b. | capital. | d. | credibility. |
|
|
|
2.
|
When you complete a credit application to assess whether you are a good credit
risk, you are likely to be asked…
a. | how long you’ve lived at your present address. | b. | what religion you
are. | c. | where you were born. | d. | whether you have a good driving
record. |
|
|
|
3.
|
The Equal Credit Opportunity Act protects against discrimination for all of the
following reasons EXCEPT…
a. | employment income. | c. | race. | b. | national origin. | d. | sex. |
|
|
|
4.
|
A consumer’s right to access his or her credit file is assured by
the…
a. | Equal Credit Opportunity Act. | c. | Fair Housing
Act. | b. | Fair Credit Reporting Act. | d. | Truth in Lending Act. |
|
|
|
5.
|
You can establish a good credit history by doing any of the following
EXCEPT…
a. | applying for a credit card at a local store and paying your bills on
time. | b. | applying for a small line of credit at a local store and making expensive purchases
in the first month. | c. | getting telephone service in your name and
paying your bills promptly. | d. | opening checking and savings accounts and
making regular deposits. |
|
|
|
6.
|
The annual rate of interest that is charged for using credit is called
the…
a. | APR. | c. | teaser rate. | b. | minimum finance charge. | d. | variable rate. |
|
|
|
7.
|
A common grace period might be…
a. | 20 to 25 days. | c. | six months to a year. | b. | one to two
months. | d. | two to five
days. |
|
|
|
8.
|
The maximum amount of credit that the creditor will extend to the borrower is
called the…
a. | adjusted balance. | c. | credit limit. | b. | average daily balance. | d. | maximum
payment. |
|
|
|
9.
|
A card that has a computer chip that stores information for online shopping is
a(n)…
a. | affinity card. | c. | prestige card. | b. | co-branded card. | d. | smart card. |
|
|
|
10.
|
Using your credit card wisely includes all of the following EXCEPT…
a. | comparing your credit card receipts with your monthly statement. | b. | making only the
minimum payment each month. | c. | paying either the full balance or the largest
payment you can afford each month. | d. | staying well below your credit
limit. |
|