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WorksheetsChapter 18 Test Review
Total questions: 22
Worksheet time: 15mins
It is illegal for a state or local government to purchase goods on credit.
True
False
People who use affinity cards are usually expected to pay the full balance each month.
True
False
A person’s reputation for paying bills on time is known as collateral.
True
False
A creditor is a business or individual who is willing and able to provide information about your creditworthiness.
True
False
The Consumer Credit Reporting Reform Act places the burden of proof for accurate credit information on you rather than the credit reporting agency.
True
False
Anyone who buys on credit is called a(n)
entrepreneur.
creditor
debtor
payee
This type of charge account requires the buyer to make full payment within a stated period.
revolving charge account
budget charge account
regular charge account
sales charge account
Which of the following is an example of a bank card?
American Express
Diners Club
MasterCard
all of the above
Which of the following is a disadvantage of using credit?
credit rating
convenience
immediate possession
overbuying
To make the computation of interest easier, a year is often considered as
360 days
365 days
364 days
400 days
Which of the following is NOT one of the “three Cs of credit”?
capacity
creativity
capital
character
A company that gathers information about credit users and sells it to businesses that offer credit is called a
investment company.
clearing house
consumer financing company
credit bureau
This regulation requires that you be told the cost of credit before signing an agreement.
Truth-in-Lending Law of 1968
Fair Credit Billing Act
Fair Credit Reporting Act
Equal Credit Opportunity Act
The Truth-in-Lending Law limits your liability to ____________________ for unauthorized credit card purchases made prior to notifying the card issuer.
$500
$100
$250
$50
This regulation requires credit bureaus to delete any information dealing with a personal bankruptcy that is more than ten years old.
Consumer Credit Reporting Reform Act
Bankruptcy Act of 2002
Fair Credit Reporting Act
Fair Debt Collection Practices Act
(a) is the privilege of using someone else’s money for a period of time.
A(n) (a) charge account requires a customer to make payments of a fixed amount over several months.
A payment of part of the purchase price of a product or service is a(n) (a) payment; it usually made at the time of the purchase.
The amount of a loan is called the (a) .
A person’s ability to pay a debt when it is due is called (a) .
A(n) (a) of account is a record of the credit transactions completed during the billing period.
People who need a small amount of money for a short time sometimes use (a) loans, a type of cash advance with extremely high interest rates.
