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(Old) POB 5.01 Understanding Credit Flashcards | StudBud
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(Old) POB 5.01 Understanding Credit
(Old) POB 5.01 Understanding Credit
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NCPOBold 5.01 Elements review. #pob #principlesofbusiness #abuaita
Flashcards
20 cards
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Practice quiz
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Questions
20
Answers
1
The formula for calculating simple interest is:
I = P x R
I = P + R + T
I = P / R / T
I = P x R x T
2
A loan that will be paid back in 18 months at a set amount each month. What type of loan is it?
Installment Sales Credit
Consumer Loans
Unsecured Loan
Credit Card Sale
3
Which is a DISADVANTAGE of a business employee overbuying using credit?
An employee charged prior approved items needed by the team.
An employee charged supplies that are desperately needed.
An employee compared prices and charged the best-priced one.
An employee charged supplies because more is better.
4
Target makes sure all applicants are creditworthy before issuing credit cards. This is what reg
Fair Credit Billing Act
Consumer Credit Reporting Reform Act
Equal Credit Opportunity Act
Fair Credit Reporting Act
5
Cost of credit refers to:
Interest Paid
Principal
Length of loan
Saving money
6
Who should you contact to receive information on actions to help manage debt?
Loan Officer
Credit Counselor
Bank Teller
Bankruptcy Counselor
7
Juliet set up a direct debit agreement with Union Power. This is an example of:
Budget Loan
Consumer Loan
Charge Account
Home Loan
8
Debt collectors cannot call debtors after 9:00 p.m. What regulation are debtors protected?
Equal Credit Opportunity Act
Fair Debt Collections Act
Fair Credit Billing Act
Truth-in-Lending Law
9
Paying all your bills on time shows that you have what "C" of credit?
Character
Capacity
Capital
10
Which is NOT an advantage of businesses using credit?
Establishing favorable credit rating
Keeping business separate from personal expenses
Keeping track of what employees are spending
Experiencing theft of customer records/databases
11
If you lose your job during a loan process, you may get denied because What "C" of credit?
Capacity
Capital
Character
12
Jo maintained his living expenses while working his job for the past 6 years. What "C" is this?
capacity
character
capital
13
Tim can borrow $5,000 at 3%interest. Which option would allow Tim to pay LEAST amount of $$?
Option 4: loan for 18 years
Option 2: loan for 12 months
Option 1: loan for 6 months
14
Some people must use this to reduce debt, but it harms your credit score for at least 7 years:
Getting a new credit card
Getting a new loan
Credit Counseling
Bankruptcy
15
Jo spoke w/ a Belk rep about her overdue $$ & organized it. Which type of credit assistance?
debt repayment plan
credit repair
credit counseling
bankruptcy
16
A loan officer explained cost of credit and terms of the agreement. Which law applies here?
Fair Debt Collections Act
Truth-in-Lending Law
Equal Credit Opportunity Act
Fair Credit Billing Act
17
Tia is buying at a Boyle’s furniture. Payments over a period of 3 years. What payment type?
consumer loan
charge account
credit card
installment credit
18
The form which a lender uses to obtain information about you is called a (n)?
Statement of Account
Credit Application
Credit Report
Credit Contract
19
Mary paid only $50 for unauthorized charges on her Visa. What regulation protected her?
Fair credit reporting act
Truth-in-lending law
Equal credit opportunity act
Fair credit billing act
20
A bank has a 36-month option for borrowing money to pay off debts. What type of credit is this?
Credit Card
Consumer Loan
Installment Credit
Charge account
