Which of the following statements about wages and household American debt is true?

Wages have increased less than prices, and debt has increased

A data set with low standard deviation has…

Data points clustered close to the mean

What is good advice on raising your credit score?

Pay your credit card bill on time each month

What is the purpose of a credit report?

To help lenders determine if you are a qualified candidate for credit

Which student is most likely to have the highest credit score?

Jill: 3 credit cards pay in full every month & apply for new line of credit

Which of the following actions would be included in your credit report?

You made your student loan payment on time

Which is NOT true about late credit card payments?

They are an extremely rare occurrence among American credit cardholders

Why is it important to check your credit report regularly?

To identify potential errors or fraudulent activity

If a potential lender checks your credit score and finds out it is above 750, which is the most likely outcome?

You will receive a loan with a low interest rate

The two largest factors in your credit score are:

On-time payments and utilization ratio

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FA Unit 8 Test Review

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Questions 19

Answers

1
Which group shows 25% of respondents had less than $19,000 in debt?
Purple
Orange
2
Which group has a smaller range?
Purple
Orange
3
Which of the following statements about wages and household American debt is true?
Wages and prices have remained the same, and debt has remained the same
Wages have increased proportional to prices, and debt has remained the same
Wages have increased less than prices, and debt has increased
Wages have increased more than prices, and debt has decreased
4
A data set with low standard deviation has…
Data points spread out far away from the mean
Data points clustered close to the mean
A skewed distribution
A large interquartile range
5
What is good advice on raising your credit score?
Pay your credit card bill on time each month
Pay off your debts as slowly as possible
Close as many credit card accounts as you can
Open up a savings account
6
What is the purpose of a credit report?
To help lenders determine if you are a qualified candidate for credit
To prove that you are authorized to work in the United States
To compare the cost of different lines of credit
To provide a free tool for you to track your finances and budget
7
Which of these parties is least interested in checking your credit score?
A car dealership
An apartment leasing office
A college admissions office
A future employer
8
Which student is most likely to have the highest credit score?
Bill often forgets which of 3 credit cards to make payments on
Bekkah has 2 credit cards and they’re usually near their credit limit
Sarah never had a credit card and has over $10,000 in her savings account
Jill: 3 credit cards pay in full every month & apply for new line of credit
9
Which group has the higher max?
Orange
Purple
10
Which group has the higher min?
Orange
Purple
11
Which of the following actions would be included in your credit report?
You bought a $300 prepaid card
You made your student loan payment on time
You checked your credit score on your bank’s mobile app
You used your debit card at the grocery store
12
Which group has the larger median?
Orange
Purple
13
Which is NOT true about late credit card payments?
They can drop your credit score by as much as 100 points
They are an extremely rare occurrence among American credit cardholders
They can stay on your credit report for up to 7 years
They are the largest factor in your overall credit score
14
Why is it important to check your credit report regularly?
To identify potential errors or fraudulent activity
automatically increase the credit limit on your revolving credit accounts
To improve your credit score through frequent hard inquiries
To monitor the transactions on your credit card
15
What is the highest FICO credit score you can obtain?
850
1000
650
100
16
If a potential lender checks your credit score and finds out it is above 750, which is the most likely outcome?
You will receive a loan with a low interest rate
You will receive a loan with a high interest rate
You will be denied the loan
You will receive a loan with a low principal
17
The two largest factors in your credit score are:
On-time payments and utilization ratio
On-time payments and new credit inquiries
On-time payments and credit age
On-time payments and credit mix
18
Which group has the larger interquartile range?
Orange
Purple
19
If you have one credit card with a $100 balance and a $1000 limit, what would your utilization be?
30%
3%
10%
1%

FA Unit 8 Test Review Flashcards | StudBud