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BUSN 380 Week 3 Quiz Set 1 Click Here to Buy the Tutorial http://www.uophelp.com/BUSN-380/product-17629-BUSN-380-Week-3-QuizSet-1 For more course tutorials visit www.uophelp.com

Question 1. Question : (TCO 3) Examples of _____ include automobile and installment loans for purchasing furniture or appliances. a line of credit a credit card loan open-end credit closed-end credit convenience credit

Question 2. Question : (TCO 3) When obtaining open-end credit, you may see this being offered as installment credit. a box of credit. convenience credit. revolving credit. a single lump-sum credit.

Question 3. Question : (TCO 3) Which one of these agencies can provide a report about your past and present credit activity to a prospective creditor? The Federal Reserve Bank in your district The Audit Bureau of Circulation The Federal Trade Commission A debit bureau A credit bureau Question 4. Question : (TCO 3) Which one of these items can be included in your credit report? Race Marital status


Sex Nationality Religion Question 5. Question : (TCO 3) All of the following provide data to credit bureaus except banks. finance companies. merchants. court records. the Internal Revenue Service.

Question 6. Question : (TCO 3) One of the five Cs that describes a borrower's attitude toward his or her credit obligations is called

character. capital. capacity. collateral. conditions. Question 7. Question : (TCO 3) One of the five Cs of lending refers to a borrower's financial ability to meet credit obligations; this is called collateral. character. capital. capacity. conditions. Question 8. Question : (TCO 3) When reviewing your credit file, if you find that there is information that is incorrect, then

there are legal remedies available to you. you have no legal remedies. credit bureaus are not required to change it. you can't really do much about it. don't worry much, because you will still get the credit. Question 9. Question : (TCO 3) Which one of the selections can be categorized as an advantage of credit?


The use of credit can lead to court action and bankruptcy. The use of credit can lead to overspending. The use of credit can lead to anxiety. The use of credit ties up the use of future income. The use of credit allows for the purchase of goods even when funds are low.

Question 10. Question : (TCO 3) Mary Jones has obtained a loan that must be paid over the next 12 months and she will use this money for a vacation. What type of credit is being used? Installment sales credit Incremental credit Single lump sum credit Revolving credit Installment cash credit

Question 11. Question : (TCO 3) As used in Chapter 7 of the text, float refers to an interest charged for only a few days. something one enjoys in a parade. a home equity loan. a period when no interest is charged. a lump-sum loan from a credit union.

Question 12. Question : (TCO 3) Usually, medium-priced loans can be obtained from parents or family members. commercial banks and credit unions. the Diners Club. finance companies. American Express.

Question 13. Question : (TCO 3) What is the top reason why consumers default on their debts? Medical expenses Defective goods and services Excessive use of credit Fraudulent use of credit Consumer fraud


Question 14. Question : (TCO 3) The following bankruptcy option allows a debtor with a regular income to extinguish his or her debts from future earnings over time. Chapter 7 Chapter 11 Chapter 13 Chapter 15 Chapter 3 Question 15. Question : (TCO 3) Allison Smith starts the month with a balance of $1,100 on her credit card. On the 10th day of the month, she purchases $200 in clothes with her credit card. On the 15th day of the month, she makes a payment on her credit card of $500. The average daily balance for the month including the new purchase is $883. The average daily balance for the month excluding the new purchase is $750. Allison's interest rate is 1.5% for the month. Allison's bank calculates the finance charge on the credit card by using the adjusted balance method. What would Allison's finance charges be for the month? $7.50 $9.00 $11.25 $13.25 $16.50

Question 16. Question : (TCO 3) Sarah Russell starts the month with a balance of $1,000 on her credit card. On the 10th day of the month, she purchases $200 in clothes with her credit card. On the 15th day of the month she makes a payment on her credit card of $500. The average daily balance for the month including the new purchase is $883. The average daily balance for the month excluding the new purchase is $750. Sarah's interest rate is 1.5% for the month. Sarah's bank calculates the finance charge on the credit card by using the average daily balance, excluding new purchases. What would Sarah's finance charges be for the month? $7.50 $13.25 $18.00 $15.00 $11.25 Question 17. Question : (TCO 3) If Sarah goes out and spends $600 in new clothes for herself, putting it all on her credit card after her husband returns at 4 a.m. the previous morning from a night on the town, this is an example of which of the following?


Misunderstanding or lack of communication Keeping up with the Joneses The expectation of instant comfort The use of money to punish Overindulgence of children Question 18. Question : (TCO 3) Steve has three children and has purchased each of them his or her own TV that is placed in his or her respective room. Which reason for indebtedness is this an example of? Misunderstanding or lack of communication Overindulgence of children The expectation of instant comfort Keeping up with the Joneses The use of money to punish

Question 19. Question : (TCO 3) _____ families rely heaviest on student loans to finance college. Low-income Middle-income High-income Large Small Question 20. Question : (TCO 3) If Tracy Sears borrows $1,250 for 1 year with an APR of 9% with no service fees, what is her total cost of credit? $125 $112.50 $7.50 $9.38 $0

Busn 380 week 3 quiz set 1  
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