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WorksheetsConsumer Credit Workplace Essentials
Total questions: 42
Worksheet time: 25mins
When you purchase something you do not pay for immediately:
debit
asset
credit
FICO
A person or organization that extends credit to a consumer.
loaner
extender
mom
creitor
A person who uses credit
debtor
creditor
auditor
principal
Your ability to earn money now and in the future. Included in your financial history when applying for credit.
earning power
credit rating
assets
future investment
Which of the following is the definition of available credit?
The difference between the maximum amount you can owe and the actual amount you owe on a credit card.
The maximum amount that a credit card holder can owe on a credit card at one time.
The cost of using a credit card for the current billing period.
A purchase, cash advance, balance transfer, or payment made using a credit card.
Monique buys a $4,700 air conditioning system using an installment plan that requires a 15% down payment. How much is the down payment?
(a)
A person who has a good personal credit record is generally charged a lower interest rate when he applies for a loan.
True
False
Which of the following would affect a good credit record?
Avoid late payments
Maintain a good habit of financial discipline
Avoid impulse purchases
Apply for more credit cards
What is a good way to maintain financial discipline?
Evaluate budgeted against actual spending
Apply for credit cards when there are promotions
Utilise the credit limit of a credit card fully
Overdraft money to make purchases
We should __________ to Keep a good credit record.
Keep less than two credit cards
avoid late payments
keep the loan to as little as possible
keep the number of purchase to as few as possible
What is debt?
Another word for death
Something, typically money, that is owed or due
A loan on which you do not have to pay interest
That which is incurred during childhood and consummated in college
Revolving credit is...
a type of credit that can be used repeatedly up to a certain limit as long as the account is open and payments are made on time.
a type of credit that can be used only once up to a certain limit and must be closed immediately after all payments are due
a spinning door with money in it
a round device that holds credit cards and spins, making it easy to shuffle through all your credit cards quickly
What is a credit score?
a number between 300 and 850 representing your creditworthiness
a statistical number that evaluates a consumer's creditworthiness and is based on credit history.
Often referred to as a FICO score
All of the above
What is an interest rate?
it is your level of interest about a certain topic expressed as a percentage of your total interest
The amount in terms of dollars that you have to pay back on a purchase
it is the rate at which your interest in something expires. The higher the number, the quicker your interest expires
The amount in terms of a rate or percentage that you have to pay back on an amount borrowed
What is a credit report?
A detailed report of an individual's credit history prepared by a credit bureau and used by a lender in determining a loan applicant's creditworthiness
A detailed report of a bank's credit history prepared by a credit expert and used by consumers in determining a bank's creditworthiness
A report which shows which credit cards are better than others
A report invented by Allan Greenspan and credited to Al Gore
What is bankruptcy?
A point in time where everything a person owns has been given to charity
A legal proceeding involving a person or business that is unable to repay outstanding debts in which the debtor's assets are measured and evaluated, whereupon the assets are used to repay a portion of outstanding debt
When a bank is built on top of a volcano and the volcano erupts causing a bank(e)ruptcy
A legal proceeding involving a person or business that is more than capable of repaying outstanding debts in which all of the debtor's assets are measured and evaluated, and then given away to those in need
Shopaholics and young adults are most vulnerable to misusing credit.
True
False
Credit when effectively used, can help you have more and enjoy more.
True
False
Captain America has been very responsible with his credit card. He uses AMERICAN EXPRESS card to pay most of his expenses. His credit rating is excellent, never missing any payments and always on time. His average monthly balance is $8,250. According to the terms of his credit card, his APR is 10.99% to 25.99% based on creditworthiness. Estimate the amount of interest he will pay for a year based on his average monthly balance.
$75.63
$907.50
$1,526.25
$2,145.00
If Consumer Laws weren't in place, some businesses might be tempted to be a bit dishonest.
True
False
____________ is the federal law that regulates credit reporting agencies and compels them to insure the information they gather and distribute is a fair and accurate summary of a consumer’s credit history.
Fair Debt Collections Protection Act
Truth in Lending Act
Fair Credit Reporting Act
Fair Lending Act
Telephone Consumer Reporting Act
______________ is a United States federal law enacted in 1974 as an amendment to the Truth in Lending Act (codified at 15 U.S.C. § 1601 et seq.). Its purpose is to protect consumers from unfair billing practices and to provide a mechanism for addressing billing errors in "open end" credit accounts, such as credit card or charge card accounts.
Fair Debt Collections Protection Act
Fair Lending Act
Truth in Lending Act
Fair Credit Reporting Act
Telephone Consumer Reporting Act
____________ is the policy of the State to protect its citizens from a lack of awareness of the true cost of credit to the user by assuring a full disclosure of such cost with a view of preventing the uninformed use of credit to the detriment of the national economy.
Fair Debt Collections Protection Act
Fair Credit Reporting Act
Fair Lending Act
Telephone Consumer Reporting Act
Truth in Lending Act
To provide protection to the consumers against the improper behaviour of the producers and sellers is called ____________.
Consumers Protection Act
Consumer Protection
Consumer Welfare
Consumer Education
Marissa got a letter from Nordstrom stating that her credit application had been approved. Marissa can spend up to 5,000 and the annual interest rate is 15.99%. Nordstrom followed what law?
Credit Card Act of 2009
Usury law
Truth In Lending Law
Fair Credit Reporting Act
Chase is concerned he will be turned down for a loan because he is a single male. What law protects him against this concern?
Equal Credit Opportunity Act
Fair Credit Billing Act
Fair Credit Reporting Act
Fair Debt Collections Act
Promotes accuracy, fairness, and privacy of information in the files of consumer reporting agencies
Truth in Lending Act
Equal Credit Opportunity Act
Fair Credit Reporting Act
Fair Debt Collection Act
