Credit is different from debt because

credit lets u get $ in return for the promise to repay later

People who pay the full credit card balance each month will likely

have a high credit score because they are credit worthy

How does credit card debt affect a person’s net worth?

It decreases a person’s net worth

Negative or inaccurate information on a credit report may affect a person’s

application to rent an apartment

A credit card company will likely require an 18-yr-old college student w/ no credit history to

get a parent/guardian to co-sign/guarantee repayment of debt

What is a primary reason that people file for bankruptcy?

To obtain relief from debts that cannot be paid

Sue lost her job & is unable to pay her $200 monthly car lease. What is most likely to happen?

The car dealership will require the return of the car

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PFL Core Exam Practice 2016 Part 01 10Qs

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Practice for DECA Personal Financial Literacy Core Exam, Test from Study Guide 2016 (which was state/chartered exam for 2016), taken from Questions 1-11

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Questions 10

Answers

1
Credit is different from debt because
credit lets u get $ in return for the promise to repay later
debt is an asset that can be purchased using a debit card
cash advances are not available from credit cards
interest is not charged on an unpaid debt
2
People who pay the full credit card balance each month will likely
have the credit card grace period extended to one year
receive monthly discounts 4 paying credit card bills on time
have a high credit score because they are credit worthy
lose credit worthiness b/c banks can't make profit off them
3
Which of the following is one of the nationally recognized credit reporting bureaus?
Equifax
American Express
AFLAC
TransCredit
4
All of the following federal laws protect borrowers EXCEPT the
Social Security Act
Credit CARD Act
Truth in Lending Act
Fair Credit Reporting Act
5
How does credit card debt affect a person’s net worth?
It decreases a person’s net worth
It increases a person’s net worth
It is usually equal to net worth
It has no effect on a person's net worth
6
Negative or inaccurate information on a credit report may affect a person’s
application to rent an apartment
retirement plan
freedom to travel outside of the country
life insurance policy
7
A credit card company will likely require an 18-yr-old college student w/ no credit history to
work a full time job while attending school
get a parent/guardian to co-sign/guarantee repayment of debt
keep a minimum balance of $300 in their bank account
maintain a grade point average (GPA) of 3.0
8
What is a primary reason that people file for bankruptcy?
To get six months of credit counseling at no cost
To get money to repay money owed to creditors
To obtain relief from debts that cannot be paid
To qualify for a low premium on credit card insurance
9
Sue lost her job & is unable to pay her $200 monthly car lease. What is most likely to happen?
The car dealership will exchange a cheaper model with her
The bank will garnish her wages
Sue should file for bankruptcy
The car dealership will require the return of the car
10
Which of the following issue credit cards to the public?
U.S. Government
Hospitals
Large retail stores
Consumers

PFL Core Exam Practice 2016 Part 01 10Qs Flashcards | StudBud