Personal Finance Ch. 10 - Credit

Interest on an unsecured loan is usually lower than on a secured loan.

• True

• False

The Fair Credit Reporting Act of 1971 gave consumers a way to check their credit reports by letting them know which credit bureau was used.

• True

• False

The Equal Credit Opportunity Act makes it illegal to refuse credit on the basis of race, color, religion, national origin, gender, marital status, or age.

• True

• False

The difference between the amount owed on a home and the home's value is equity.

• True

• False

A person's Capacity (5 C's) to repay a loan is based on their financial responsibility and if they have paid loans back in the past.

• True

• False

You should not sign a contract with an acceleration clause in it because the entire debt is due if you miss one payment.

• True

• False

One advantage of buying a home is the property taxes and interest paid on the home are tax deductible.

• True

• False

A typical credit card is a revolving charge account where you can carry a balance from month to month and you are charged interest if you don't pay the balance off in full.

• True

• False

A measure of your creditworthiness is your?

• credit rating/score

• credit listing

• credit card

• debit card

If you want to get cash for personal property such as jewelry or a TV, then you need to see a?

• banker

• life insurance policy

• pawnbroker

• credit bureau