Chapter 06 – Introduction to Consumer Credit
75. (p. 178) A debit card:
76. (p. 183) In determining your credit capacity, you first provide for basic necessities, such as:
77. (p. 183) Experts suggest that you spend no more than ____________ percent of your net
income on credit purchases.
Chapter 06 – Introduction to Consumer Credit
78. (p. 175) Today, Michael purchased a laptop computer from a retail outlet. He has agreed to
pay for this purchase in full 30 days from today. This is an example of:
79. (p. 185) If you cosign a loan:
80. (p. 186) Which one of the following agencies can produce for a subscribing member, almost
instantaneously, a report about your past and present credit activity?
Chapter 06 – Introduction to Consumer Credit
81. (p. 183) If your monthly net (after-tax) income is $1,500, what should be your maximum
amount spent on credit payments?
82. (p. 183-184) What would be the maximum limit for an individual’s debt-to-equity ratio,
excluding the home mortgage?
83. (p. 186) What can be included in your credit report?
Chapter 06 – Introduction to Consumer Credit
84. (p. 187) Which federal law regulates the use of credit reports, requires the deletion of
obsolete information, and gives you access to your file?
85. (p. 187) Most of the information in your credit file may be reported for only ______ years.
86. (p. 187) If there is incorrect information in your credit file:
Chapter 06 – Introduction to Consumer Credit
87. (p. 188) An unauthorized person who obtains a credit report under false pretenses may be:
88. (p. 183) The debt payments-to-income ratio is:
89. (p. 183-184) The debt-to-equity ratio is:
Chapter 06 – Introduction to Consumer Credit
90. (p. 183) Dave’s take-home-pay per month is $2,200. What is the maximum dollar amount of
debt payments, excluding a home mortgage, he should have?
91. (p. 186) Which one of the following is not a source that provides data to credit bureaus?
92. (p. 187) If you have declared personal bankruptcy, that fact may be reported by credit
bureaus for ____________ years.
Chapter 06 – Introduction to Consumer Credit
93. (p. 187) If you have incorrect information in your credit file:
94. (p. 194) If you are denied credit, your first step should be to:
95. (p. 190) Which federal consumer credit law starts all credit applicants off on the same
footing?
Chapter 06 – Introduction to Consumer Credit
96. (p. 190) If you are a woman, a creditor must:
97. (p. 194) The credit bureau cannot charge you a disclosure fee if you ask to see your file
within ______ days of being notified of a denial based on a credit report.
98. (p. 192) The borrower’s attitude toward his or her credit obligations is called:
Chapter 06 – Introduction to Consumer Credit
99. (p. 192) A bank that is looking at your past payment records on your loans is most likely
examining which aspect of the 5 Cs of lending?
100. (p. 192) The borrower’s financial ability to meet credit obligations is called:
101. (p. 192) A term that refers to the borrower’s assets or net worth is called:
Chapter 06 – Introduction to Consumer Credit
102. (p. 192) A valuable asset pledged to assure loan payments and subject to seizure upon
default is called:
103. (p. 192) A loan officer is examining your income and the amount of your existing debt
payments in deciding whether to make a loan to you today. Which aspect of the 5 Cs of
lending is the loan officer most likely looking at?
104. (p. 193) In evaluating your credit application, a lender may:
Chapter 06 – Introduction to Consumer Credit
105. (p. 194) If your credit application is denied, you:
106. (p. 195) If you have a problem with your creditor, the best solution is to:
107. (p. 195) Which federal credit law sets the procedure for promptly correcting billing
mistakes?
Chapter 06 – Introduction to Consumer Credit
108. (p. 194) The best way to maintain your credit rating is to:
109. (p. 196) If you think that your bill is wrong, you should first:
110. (p. 195) Which federal credit law protects you against an unauthorized use of your credit
card?
Chapter 06 – Introduction to Consumer Credit
111. (p. 196) When you complain about your billing error, the creditor must acknowledge your
letter within ____________ days.
112. (p. 196) While you are resolving a billing dispute, a creditor may:
113. (p. 198) What should you do if your identity is stolen?
Chapter 06 – Introduction to Consumer Credit
114. (p. 200) If you have a complaint about consumer credit, you should first:
115. (p. 201) Which federal law protects you by requiring credit bureaus to furnish correct and
complete information to creditors?
116. (p. 200) Which federal consumer credit law provides specific cost disclosure requirements
for the annual percentage rate and the finance charge as a dollar amount?
Chapter 06 – Introduction to Consumer Credit
117. (p. 200) Which federal consumer credit law prohibits credit discrimination based on sex and
marital status?
118. (p. 200) Which federal consumer credit law regulates the advertising of credit terms?
119. (p. 204) If you have a complaint against The First National Bank of Edmond, who should
you contact?
Chapter 06 – Introduction to Consumer Credit
120. (p. 203) Which consumer credit law prohibits creditors from requiring women to reapply
for credit upon a change in marital status?
121. (p. 203) Which consumer credit law prohibits abusive, deceptive, and unfair practices by
debt collectors?
122. (p. 203) Which federal law prohibits credit card issuers from sending unrequested cards?
Chapter 06 – Introduction to Consumer Credit
123. (p. 203) Which federal law limits a cardholder’s liability for unauthorized use of a card to
$50?
124. (p. 203) Which federal law requires credit-reporting agencies to send the consumer’s
version of a disputed item to certain businesses and creditors?
125. (p. 203) Which federal law allows consumers to withhold payment for faulty or defective
goods or services (within certain limitations) when purchased with a credit card?