Credit and Loan Knowledge Review

Interest rates charged for unsecured loans are generally lower than rates charged for secured loans.

• True

• False

The Fair Credit Billing Act helps consumers correct credit card billing mistakes.

• True

• False

Few people can pay for a home without borrowing.

• True

• False

The Fair Credit Reporting Act of 1971 gave consumers a way to check their credit reports.

• True

• False

Credit cards are usually one of the most expensive forms of borrowing.

• True

• False

Consumers should take every credit card that is offered to them so they will have a variety of choices.

• True

• False

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

• True

• False

Married couples should have credit in only one of their names.

• True

• False

On a revolving charge account, the more slowly you reduce the balance, the less interest you will pay overall.

• True

• False

ATM machines enable you to receive a cash advance and add it to your credit card bill.

• True

• False