FREE AND STUDY GAMES ABOUT CHAP 7 STUDY GUIDE

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FREE AND STUDY GAMES ABOUT CHAP 7 STUDY GUIDE

EXAM QUESTIONS

Actual Qs and Ans Expert-Verified Explanation

This Exam contains:

-Guarantee passing score -38 Questions and Answers -format set of multiple-choice -Expert-Verified Explanation Question 1: Under the provisions of current credit card legislation, credit card companies

Answer:

can raise minimum payments by up to twice the existing percentage

Question 2: Service credit is often provided by utility companies and doctors.

Answer:

True

Question 3: Implementing a buying plan involves

Answer:

comparison shopping Question 4: A lender of a variable-rate loan may adjust the interest rate at any time but must provide a 30-day notice.

Answer:

False

Question 5: No interest is charged on the unused portion of a line of credit.

Answer:

True Question 6: The interest rate that banks offer to their most creditworthy business customers is the

Answer:

prime rate

Question 7: This is not one of the five steps of creating a buying plan

Answer:

choose a payment method Question 8: A cosigner with good credit may be required by the bank if there is no collateral for the loan.

Answer:

True Question 9: If you report a lost or stolen credit card to the credit card company, you will not be held responsible for charges you did not make.

Answer:

True Question 10: Financial responsibility does not allow for the pursuit of personal interests, hobbies, or cultural events.

Answer:

False

Question 11: symptoms of financial irresponsibility

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Bills not paid in a timely manner, money spent on luxury items while basic needs are not met, a month's paychecks don't last the month, borrowed money is not repaid in a timely matter or at all, and there is inadequate resources to live comfortably.

Question 12: This is not a cost of financial irresponsibility

Answer:

low or no income Question 13: A good way to get started with credit is to open a checking account and get a debit card.

Answer:

True

Question 14: Systematic decision making

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requires you to be financially responsible, is the process of making choices that reflect your goals and considers all of the pros and cons as well as the costs.Question 15: Three methods used to compute interest charges on revolving credit accounts include

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adjusted balance method, previous balance method, average daily balance method

Question 16: the ability to receive services and pay for them later.

Answer:

service credit

Question 17: A person who borrows money is called a creditor.

Answer:

False

Question 18: regret over a buying decision you have made.

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buyer's remorse Question 19: rate that goes up and down with inflation and other economic conditions

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variable interest rates

Question 20: A buying plan focuses only on items that you can afford to buy now.

Answer:

False

Question 21: cards which require payment of the balance

in full each month

Answer:

charge cards

Question 22: This is not a reward of being financially responsible

Answer:

an easy life

Question 23: Property that can be used as security for a loan

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collateral Question 24: credit which allows the account holder to charge to the account repeatedly and have an ongoing balance. Examples are MasterCard and Visa.

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revolving credit Question 25: Responsible shopping means always selecting the item with the lowest price.

Answer:

False

Question 26: advantages to consumers of using credit

Answer:

Advantages to consumers using credit may include: increased purchasing power, security, convenience, leverage, and benefits like rewards programs.

Question 27: This is not an advantages of using credit

Answer:

decreased purchasing power