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Consumer Credit Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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Question 1 1. Which of the following scenarios illustrates a situation in which a lender quantifies a borrower's character to determine creditworthiness?

Question 2 2. Yvette, a loan officer, examines Omar's tax returns, current employment, debts, and assets to determine his financial ability to pay back a bank loan. Yvette subsequently recommends Omar's loan be approved because he has the _____ to make the loan payments.

Question 3 3. Gertie and Nate are planning to open a small landscaping company. They intend to use the equity in their home to secure a business loan from the bank. Their home is an example of:

Question 4 4. When it comes to loans, the specific factors surrounding the loan, such as the principal amount, interest rate, term, and current state of the economy are referred to as _____.

Question 5 5. Sanjay has his eye on a new sports car and plans to put down $10,000 cash toward the total purchase price of the vehicle. This cash amount is referred to as:

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Question 6 6. The cost of using credit is the _____.

Question 7 7. John has just paid off the full balance of his credit card. What happens to the debt?

Question 8 8. Judy is buying a car, which is being financed by a local dealership. What will happen once she pays the dealership back?

Question 9 9. How can revolving credit build the reputation of a borrower?

Question 10 10. Once a credit is used, it _____.

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Question 11 11. Margie's credit card bill is due on the 30th of each month. She sent her payment on the 25th, but the company posted the payment on the 5th of the following month and charged her a late fee. This is likely a violation of the:

Question 12 12. Emily missed a few payments on her credit card while she was out of work. Now she has a debt collector calling her, sometimes up to 20 times a day. Which act is the debt collector violating?

Question 13 13. Sally received a copy of her credit report and noticed an error. The report lists a credit card she has never owned. She wants to dispute this error. What law contains information about how to do this?

Question 14 14. The Federal Trade Commission is made up of several different bureaus. Which bureau handles credit protection?

Question 15 15. What is a consumer's credit score?

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Question 16 16. What is the correct definition of interest?

Question 17 17. Which is TRUE of payment history and its relation to credit reports?

Question 18 18. Which of the following is true about credit lenders and the maximization of credit?

Question 19 19. How does credit score affect interest rates?

Question 20 20. Mary has never had a credit card, and she has never taken out any loans before. Why might she be denied a loan if she applies for one?

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Question 21 21. Which type of credit allows you to request a limit increase if payments are made on time?

Question 22 22. Which of the following is an example of installment credit?

Question 23 23. Terry used installment credit to buy a $10,000 car. She has made 10 payments of $1,000 each and has requested the title (ownership papers) to the car. Will Terry get the title?

Question 24 24. Which type of credit requires you to pay the total balance in 30, 60, or 90 days?

Question 25 25. Shawna has been saving for a year to purchase a flat screen TV. When she visits an electronics store, they ask her to complete a credit application just in case she doesn't want to use her cash. Shawna is approved for revolving and installment credit as well as a 90 days same as cash option. Which choice is best if her goal is save on interest?

Consumer Credit Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

OAE Family & Consumer Sciences (022): Study Guide & Practice  /  Social Science Courses
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