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BUSN 380 Week 3 Quiz Set 2 Click Here to Buy the Tutorial http://www.uophelp.com/BUSN-380/product-17628-BUSN-380-Week-3-QuizSet-2 For more course tutorials visit www.uophelp.com

1. (TCO 3) _____ is a good example of a closed-end credit. A credit card issued by a department store A credit card issued by VISA or MasterCard A mortgage loan Using a cashier's check to pay for a purchase Using overdraft protection at a bank

Question 2. 2. (TCO 3) A creditor may set a maximum amount of credit that a person is allowed, and this is called a(n) revolving credit. line of credit. convenience credit. installment cash credit. single lump-sum credit.

Question 3. 3. (TCO 3) If your monthly net (after-tax) income is $2,200, what should be your maximum amount spent on credit payments? $150 $220 $440 $500 $660

Question 4. 4. (TCO 3) Which one of these items can be included in your credit report? Race Marital status Sex Nationality Religion


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

Question 6. 6. (TCO 3) Personal bankruptcy can be reported to credit bureaus for _____ years. 5 7 10 15 25

Question 7. 7. (TCO 3) If a bank needs to examine the value of a specific asset when you are applying for a loan, this process refers to which aspect of the five Cs of lending? Character Capacity Collateral Capital Conditions

Question 8. 8. (TCO 3) When a lender examines your job situation and the security of your employment, it is considering which area of lending? Capacity Character Capital Collateral Conditions

Question 9. 9. (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. 10. (TCO 3) Which one of the selections can be categorized as a disadvantage of credit? The use of credit can allow you to receive advance notice of sales. The use of credit can allow for you to purchase previously inaccessible items. The use of credit allows for the purchase of goods even when funds are low. The use of credit can allow for the easier return of merchandise. The use of credit can lead to overspending.

Question 11. 11. (TCO 3) By evaluating your credit options, you can do all of the following except reduce your finance charges. reconsider your decision to borrow money. discover a less expensive type of loan. find a lender that charges a lower rate. purchase goods and services without specific limitations.

Question 12. 12. (TCO 3) Typically, a person can obtain the least expensive loan through parents or family members. banks. savings and loan associations. finance companies. loan sharks.

Question 13. 13. (TCO 3) Referring to trends in credit union membership, it can be observed that membership has been restricted by the Tax Reform Act of 1986. declining gradually. static. growing steadily. restricted by state laws.

Question 14. 14. (TCO 3) Which one of the following is a signal of a potential debt problem? Paying the maximum balance due each month Borrowing money to pay old debts Using savings to pay for major purchases Receiving notice of prompt payment from creditors Occasionally working overtime and moonlighting


Question 15. 15. (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. 16. (TCO 3) Jerry Dean starts the month with a balance of $1,500 on his credit card. On the 10th day of the month, he purchases $200 in clothes with his credit card. On the 15th day of the month, he makes a payment on his 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. Jerry's interest rate is 1.5% for the month. Jerry's bank calculates the finance charge on the credit card by using the previous balance method. What would Jerry's finance charges be for the month? $7.50 $13.25 $15.00 $22.50 $18.00

Question 17. 17. (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. 18. (TCO 3) One day, Gary notices that is neighbor has purchased a new Land Rover and it is sitting in his driveway. Gary decides that he also needs a new car and goes out and purchases a Hummer with a 6-year loan on it. Which reason for indebtedness is this an example of? 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 19. 19. (TCO 3) In terms of borrowing expenses, which of the following options would be relatively the cheapest? Car dealer Appliance store Department store Relative Finance company

Question 20. 20. (TCO 3) If Marjorie Wilcox borrows $200 for 1 year with an APR of 12% and an annual service fee of $10, what is her total cost of credit? $10 $12 $24 $34 $42

Busn 380 week 3 quiz set 2  
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