Ch. 10 Obtaining and protecting your credit quiz

An arrangement to receive cash, goods or services now and pay for them in the future is called

• net income

• collateral

• credit

• liquidity

Which of the following practices can help to protect against identity theft?

• Monitoring your bank and credit card statements

• mailing all bills at the post office

• using a locked mailbox

• all of the above

Installment loans typically require the borrower to make payments every

• year

• month

• week

• day

Credit is advantageous because

• it is costly

• interest charges can add up quickly

• it helps us make large purchases sooner than we could if using cash

• it makes financial matters more complex

Hillary and Stephanie have both borrowed $15,000.00 from the same bank to buy the same model of a new car. Hillary's credit score is 732 and Stephanie's credit score is 588. Who is likely to pay a lower finance charge?

• They will pay the same because they used the same bank

• They will pay the same because they bought the same car

• Hillary

• Stephanie

Credit reports contain all of the following EXCEPT

• bankruptcy history

• medical records

• records of late payments

• history of default

When you​ don't have enough​ cash, __________ can make it possible for you to purchase things such as a​ house, car, or college education.

• insurance

• collateral

• interest

• credit

Everyone can access his or her credit report once every __________ months free of charge.

• 24

• 6

• 10

• 12

A person's record of using credit is their

• Credit bureau

• credit history

• interest

• credit limit

An example of ______ is when someone uses your personal information to open a department store credit account to buy furniture

• phishing

• identity theft

• shoulder surfing

• pretexting