FP 101 Week 3 Quiz

Complete the Week 3 Quiz provided by your facilitator.

Submit your Week 3 Quiz as a Microsoft® Word®attachment to the Assignment Files tab.

1. Which of the following is an example of open-end credit?
2. An automobile loan
3. A department store credit card
4. A mortgage loan
5. Single lump-sum credit

2. A direct loan for personal purposes, home improvements, or vacation expenses is called
3. A credit card
4. A revolving check credit
5. Interest
6. An installment cash credit

7. Which of the following is an example of closed-end credit?

8. A mortgage loan
9. Overdraft protection
10. A bank line of credit
11. All of the above

4. Which of the following is NOT one of the Five C’s of credit?
5. Capacity
6. Collateral
7. Conditions
8. Credit

5. Which of the following is a characteristic of this Five C: Capacity?
6. Credit payment history
7. Total net worth
8. Present debt
9. None of the above

6. What are some examples of this Five C: Conditions?
7. Unemployment
8. Recession
9. Credit rating
10. All of the above

7. Which of the following is NOT a credit bureau?
8. Equifax
9. Experian
10. Fair Isaac Corporation (FICO)
11. TransUnion

8. Which site provides a free credit report from each of the three national credit reporting companies?
9. freecreditreport.com
10. annualcreditreport.com
11. creditreports.com
12. freecreditscore.com

9. Which of the following is the most effective way to improve your credit score?
10. Pay your bills on time.
11. Never exceed your credit limit.
12. Reduce your credit utilization rate.
13. Close your creditcard accounts as soon as you pay them off.

10. FICO scores range from
11. 100 to 1000
12. 201 to 770
13. 501-990
14. 350 to 850

11. Experts suggest that the debt payments-to-income ratio should be a maximum of
12. 0%
13. 10%
14. 20%
15. 30%

12. Which of the following is NOT true about the Fair Credit Reporting Act?
13. It regulates the use of credit reports.
14. It requires deletion of out-of-date information.
15. It places limits on who can obtain our report.
16. It gives borrowers the right to know why they are denied credit.

13. Which of the following acts sets procedures for promptly correcting billing mistakes, refusing to make credit card or revolving credit payments on defective goods, and promptly crediting your payments?
14. Fair Credit Reporting Act
15. Fair Credit Billing Act
16. Consumer Credit Reporting Reform Act
17. Fair Credit and Charge Card Disclosure Act

14. Which of the following is often the first sign of a stolen identity?
15. You receive bills for a credit card you never opened.
16. You see charges to your account for items you purchased.
17. You receive a duplicate credit card from your credit card company.
18. All of these are typical signs of a stolen identity.

15. If you think your identity has been stolen, which of the following actions does the Federal Trade Commission recommend you take immediately?
16. Call 911.
17. Contact your local bank.
18. File a police report.
19. All of these steps should be taken immediately.

16. When you have serious debt problems, where is the best place to seek help?
17. From a debt consolidation company
18. From an independent consumer credit counseling agency, such as the National Foundation for Credit Counseling
19. From a credit deferral service
20. From a private loan organization, such as a bank or credit union

17. Personal bankruptcy can be filed under which section(s) of the U.S. bankruptcy code?
18. Chapter 7
19. Chapter 11
20. Chapter 13
21. Chapters 7 and 13
22. Chapters 11 and 13

18. All of the following are signs of financial trouble except:
19. You use savings to pay for necessities such as food and utilities.
20. You exceed the credit limits on your credit cards.
21. You pay your credit card bills in full each period.
22. The total balance on your credit cards increases each month.

19. Which of the following is NOT a step in correcting an error on your credit report?
20. Contact credit reporting bureaus.
21. Contact the creditor.
22. Allow 30 days for correction.
23. Stop all payment on the disputed account.

20. Most information on your credit file can be reported for up to how many years?
21. Three years
22. Five years
23. Seven years
24. Ten years