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Chapter 9 Personal Financial Literacy - part 1 ** Flashcards | StudBud
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Chapter 9 Personal Financial Literacy - part 1 **
Chapter 9 Personal Financial Literacy - part 1 **
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Personal Financial Literacy Chapter 9
Flashcards
47 cards
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Practice quiz
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Questions
47
Answers
1
Filing for bankruptcy will be recorded on your credit report.
False
True
2
Law that sets requirements for resolving billing disputes.
Fair Credit Billing Act
Equal Credit Opportunity Act
Small Claims Court
Truth in Lending Act
3
Moving debt around instead of paying it off will increase your credit score.
False
True
4
Requires lenders to fully inform consumers about cost of credit in a loan or credit agreement.
Fair Credit Billing Act
Truth in Lending Act
Credit Repair
Consumer Advocacy
5
Most credit scores range from 300-600.
False
True
6
What is the fee charged by a lender on borrowed money called?
Installment
Premium
Interest
Principal
7
Credit scores are calculated based on a model created by the Fair Isaac Corporation, also known as:
FICU
FIC
FICO
FICA
8
Which of the following is an advantage to using credit?
save money
helps with identity theft
establish a good credit history
you can use checks more frequently
9
Credit card companies make a profit by charging you interest.
False
True
10
Some disadvantages of bankruptcy are...
Credit is damaged & property is lost.
All of the above
Some debts continue & some debts can be reaffirmed
Cosigners must pay & you may not qualify for liquidation
11
You should always shred unsolicited credit card applications.
True
False
12
Your credit history is detailed in your ________________.
Credit Score
Credit Report
Credit Limit
Interest Rate
13
The contact number for identity theft problems is 1-877-IDTHEFT
True
False
14
Attaching a card reading device to ATM machines is what kind of identity theft technique?
Pretexting
Phishing
Skimming
Pharming
15
Some major causes of bankruptcy are...
All of the above
Failure to budget & develop a good financial plan
Catastrophic injury or illness
Job loss & emotional spending
16
What is the total amount of money outstanding (still owed) on a loan called?
Credit
Interest
Installment Loan
Principal
17
A law requiring that consumers be fully informed of the cost of credit in a loan.
Truth-In Lending Act
Credit Card Act of 2009
Fair Credit Billing Act
Fair Debt Collection Practices Act
18
One way to think of ______________ is rent on money borrowed.
Credit
Interest
Collateral
Principal
19
_________ is a record of your debts and a strategy for paying them off.
Credit Payment Plan
20/10 Rule
Credit Counseling
Credit Management
20
Installment payments go toward the principal and interest.
False
True
21
Legal process that relieves debtors, the responsibility of paying debts, or protect them.
Chapter 3 Bankruptcy
Debt Collection
Bankruptcy
Credit Admonishment
22
Which of these does not factor into your FICO score?
Your Occupation
Types of Credit Used
Amounts Owed
Payment History
23
What is the name of the website that you should go to when you want to order your free credit reports?
www.annualcreditreport.com
www.freecreditreport.com
www.freeannualcreditreport.com
www.creditkarma.com
24
Law that protects consumers from discrimination in the granting or denying of credit.
Truth in Lending Act
Equity Loan
Equal Credit Opportunity Act
Fair Credit Reporting Act
25
Which kind of credit is extended only for a short term, such as 30 days or less.
Credit Limit
Revolving Open-End Credit
Noninstallment Credit
Installment Credit
26
Taking possession of the house when the borrower does not make mortgage payments as agreed.
Title Loan
Mediation
Foreclosure
Repossession
27
What is the FICO scoring range?
250-750
300-850
350-800
100-850
28
Which is the most important part of your credit score?
type of credit you use
payment history
length of credit history
amount you owe
29
One major disadvantage of credit is that it can lead to over spending.
True
False
30
Without a favorable credit history, you may have to pay higher interest rates.
True
False
31
Installment credit does not increase the total cost of your purchase.
True
False
32
Examples of credit card companies include MasterCard, Visa, American Express, Discover.
False
True
33
Legal procedure to relieve a person of excessive debt.
Garnishment
Loan Modification
Bankruptcy
Foreclosure
34
Which of the following is not a credit bureau?
Trans Union
Equifax
Equi Union
Experian
35
Credit scores are also known as FICO scores.
False
True
36
Which of the following prohibits discrimination in lending?
truth in lending
fair credit act
equal credit opportunity act
equal rights act
37
Act of taking an asset used as collateral and selling it to pay the debt.
Loan Modification
Equity Loan
Arbitration
Repossession
38
Law that protects consumers from abusive collection practices by creditors & collection agencies
Consumer Advocacy
Fair Credit Reporting Act
Fair Credit Billing Act
Fair Debt Collection Practices Act
39
What would have the least effect on your credit score?
number of times borrowed money
number of times having late payments
number of times you pay with cash
number of times you make utility payments
40
Which kind of credit is extended only for a short term, such as 30 days or less?
Nonrevolving Credit
Noninstallment Credit
Revolving Credit
Installment Credit
41
You should always avoid credit.
False
True
42
Up to how many times per year can you request a free credit report from each of the credit reporting agencies?
Four
One
Two
Three
43
Which of the following would you not find on your credit report?
balance on all credit used
amount of money you earn
names of companies you have credit with
any unpaid accounts
44
What has occurred when someone uses your personal information without your permission?
Pharming
Phishing
Identity Theft
Skimming
45
What is given to the borrower with the intent of repayment?
Collateral
Investment
Credit
Interest
46
A person should not seek legal advice before declaring bankruptcy.
True
False
47
Which of the following would not request a credit report on you?
Insurance Company
Employer
Creditor
College
