MR. MASSIE – Flashcards
Unlock all answers in this set
Unlock answersquestion
Becky no longer wants to use her Clothes‐R‐Us store credit card. What is the best thing she could do with the credit card?
answer
d. Close the account by phone and in writing, then destroy the card.
question
When may a person view his/her credit report for free?
answer
b. Once a year, from each of the three main credit reporting agencies
question
When Bryce attempted to borrow money at the bank, he learned that his credit score is low. Which statement best describes what this is likely to mean for Bryce?
answer
d. The interest rates on his loan will be higher, since his credit score is low.
question
Which is NOT an example of a data furnisher?
answer
b. Credit card company
question
Jenny is 18‐years‐old and has applied for credit for the first time. Her credit application was declined because she has no credit history. What would you recommend Jenny do to being to build a positive credit history?
answer
b. Jenny should obtain a secured credit card.
question
Jake's credit application has been declined because of his negative credit history. Which statement is most likely to be true?
answer
b. Jake has applied for 4 credit cards and a car loan in the past 6‐weeks.
question
Which of the following is NOT included in an individual's credit report?
answer
d. Medical information
question
Edward wants to develop a positive credit history. How should he do this?
answer
a. maintain reasonable amounts of available credit
question
Evan is writing a scholarship essay about the importance of responsible money management. He wants to explain the meaning of borrowing. Which statement below would explain the importance of understanding the process of borrowing money?
answer
a. When you are borrowing, you are spending future income
question
The financial counselor that Ariel consulted about her use of credit recommended that she keep her use of credit within safe boundaries. Ariel's financial counselor most likely told her to:
answer
c. Keep the total amount of money she has borrowed, not including her house, under 20% of her net income.
question
David earns $5000 per month at his accounting job. He has a student loan payment of $120, a car loan of $300. Which statement is true?
answer
d. David's credit payments are within the safe range for someone with his income.
question
To answer the essay test question about the meaning of open‐end credit, Ryan should include which statement?
answer
c. Credit is extended in advance so the borrower does not have to apply for credit each time credit is desired.
question
Leah is trying to explain the difference between open‐end and closed‐end credit to her roommate. Which statement should she include in her description of closed‐end credit?
answer
b. Equal payments are required on a regular basis until the loan is repaid.
question
Sarah will turn 18 next month. She plans to apply for a credit card. Which statement is true?
answer
c. Sarah can only obtain a credit card if she has a co‐signer or proof of sufficient income to make the required payments.
question
Tyler is trying to be responsible in using his new credit card and has heard there is a way to avoid paying interest on the things he charges. How can he LEGALLY avoid paying interest when using his credit card?
answer
b. Tyler needs to pay the credit card balance in full every month before the due date listed on the credit card statement.
question
Paying the minimum payment on a credit card every month will:
answer
b. make the final amount paid substantially higher than the amount initially charged to the card
question
. Megan's credit card statement indicates that she is now paying a Penalty APR. Which scenario best describes what may have happened?
answer
a. Megan's missed making her January and February credit card payments while she was participating in her college's Study Abroad program when the friend she left in charge of sending the payments in forgot.
question
Which of the following is an act of identity theft?
answer
b. Wrongfully acquiring and using someone's personal identification
question
Carson wallet with his driver's license, a debit card and his credit card has been stolen. Which of the following is NOT something an identity thief might realistically do with this information?
answer
d. Take a college admissions exam in Carson's name
question
Ashley plans to do some of her Christmas shopping online. What is a safety tip to follow when she is shopping online?
answer
c. Use a credit card
question
. Matt wants to guard his personal information. Which personal information is LEAST LIKELY to be used by scammers?
answer
a. phone numbers
question
Charis wants to decrease the risk of fraudulent use of her credit cards. Which strategy would be the most effective?
answer
b. signing the back of her card with her signature and "Please see picture ID"
question
Which is a general rule when dealing with credit reports to minimize identity theft?
answer
a. Check each credit reports at least once per year
question
Which of the following actions will not make an individual vulnerable to identity theft?
answer
c. Keep credit reports in an easily accessible location, so information can be accessed if fraud occurs
question
Which of the following actions will not make an individual vulnerable to identity theft?
answer
b. Responding to an email from your depository institution
