FREE AND STUDY GAMES ABOUT ECON - CH. 4 REVIEW

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FREE AND STUDY GAMES ABOUT ECON - CH. 4 REVIEW

EXAM QUESTIONS

Actual Qs and Ans Expert-Verified Explanation

This Exam contains:

-Guarantee passing score -35 Questions and Answers -format set of multiple-choice -Expert-Verified Explanation Question 1: A credit score is intended to measure:

Answer:

B-The risk of your not repaying a debt.Question 2: True/False: Under the Fair Credit Reporting Act (FCRA), any person or organization may check a person's credit information without having a legitimate need.

Answer:

False Question 3: True/False: You can and should obtain a free copy of your credit report annually in order to check for any suspicious activity.

Answer:

True

Question 4: Which of the following is a credit TRUTH? (not a credit myth)

Answer:

C- Borrowing money can have serious consequences and prevent you from building wealth.

Question 5: Which of the following is NOT a recommended step in the Drive Free method of purchasing a car?

Answer:

C- Exploring new car dealerships for the best interest rate.Question 6: Which of the following things cannot be done with a debit card but can be done with a credit card?

Answer:

D- Going into debt.

A debit card acts like cash, and does not borrow money from other suppliers.Question 7: A long-term rental agreement on a car, a form of secured long-term debt...

Answer:

a Lease

Question 8: A decrease in loss or value...

Answer:

Depreciation

Question 9: Which of the following is not a factor in determining a FICO score?

Answer:

B- Paying cash for all purchases Question 10: Which of the following is not recommended in the debt snowball method of getting out of debt?

Answer:

C- Every extra dollar you get should be thrown at the largest debt first.Question 11: Preferred method of debt repayment; includes a list of all debts organized from smallest to largest balance; minimum payments are made to all debts except for the smallest, which is attacked with the largest possible payments...

Answer:

Debt snowball

Question 12: What best summarizes how the use of the credit card for purchases instead of cash can change one's spending behavior?

Answer:

C- Studies show that consumers typically spend more when using credit as opposed to cash purchases.Question 13: True/False: You must establish credit in order to buy a house.

Answer:

False Question 14: Which of the following is a sign that your identity may have been stolen?

Answer:

All of the answers. A call from your collection agency, a credit report showing suspicious account openings, or bank and billing statements that do not arrive on time can be signs of identity theft.Question 15: If you do not have a FICO score, what factors will determine whether or not you qualify for a mortgage?

Answer:

B- Both A &

• The history of rental and utility payments as well as the amount of your down payment and

employment history can determine if you qualify;

Question 16: What is not a good idea for getting out of debt?

Answer:

C- Borrowing money from your parent to pay for the debt.Question 17: Time frame that a loan agreement is in force, and before or at the end of which the loan should either be repaid or renegotiated...

Answer:

Loan term Question 18: Individual account information is removed from your credit report score seven years after the last activity on the account, except for Chapter 7 bankruptcy, which stays on

your credit report for:

Answer:

D- 10 years

Question 19: Which of the following is the most cost-effective option for purchasing a home?

Answer:

B- The most ideal way to buy a house is with 100% down; if that is not an option, you should get no more than a 15-year plan, fixed rate mortgage with a down payment of at least 10%.Question 20: A yearly fee that's charged by the credit card company for the convenience of the credit card ...

Answer:

an Annual fee Question 21: True/False: If you are a victim of identity theft, you are only responsible for paying back half of the debt.

Answer:

False Question 22: When a person owes more on a item (car, house, etc.) than it is worth, the person is said to be ________ on the loan.

Answer:

Upside-down Question 23: True/False: It is okay to use a credit card if you pay it off every month.

Answer:

False

Question 24: What factors affect a credit score?

Answer:

All of the above ( the duration of debt, new debt, type of debt, just debt overall lol)

Question 25: Which of the following statements is false?

Answer:

A- Under FCRA, consumers are allowed to receive one free credit report every five years.

Question 26: What is paycheck garnishment?

Answer:

D- A court-ordered attachment that allows a lender to take money that you owe directly from your paycheck.(E.g. If a parent is not paying child-support, then the money might start to get pulled from his paycheck.)