88%(74)65 out of 74 people found this document helpful
This preview shows page 15 - 18 out of 24 pages.
Question 5 10 out of 10 points Which of the following is NOT true about credit counseling agencies?
Selected Answer:D. They are in the lending business.Feedback:Yes...credit counseling agencies can help you restructure your debt, but they cannot lend you money to do so (they are not in the lending business). Question 6 0 out of 10 points All of the following are true about Chapter 13 bankruptcy EXCEPT: Selected Answer:B. You may keep all of your property. Feedback:No...you may keep your stuff under Chapter 13 bankruptcy; however, under Chapter 7 bankruptcy you are required to give up allof your personal property except what is needed to support you and your family (your property is sold off to pay off your debts). Question 7 10 out of 10 points Credit reporting agencies make lending decisions. Selected Answer:FalseFeedback:Yes...lenders use information from the credit reporting agencies to make lending decisions. Question 8 0 out of 10 points An installment account is an account that has a variable payment every month. Selected Answer:TrueFeedback:No...installment accounts have set payments every month. Auto and home loans are examples of installment accounts. Question 9 10 out of 10 points A credit report is a record of how you pay your debts. It tells lenders all of the following EXCEPT: Selected Answer:D. Your salary Feedback:Yes...agencies receive information from your creditors about whether you make payments on time. They do not have information on your salary/wages or about other income sources. Question 10 10 out of 10 points
Which of the following is NOT something you would generally need to provide in order to receive a copy of your credit report? Selected Answer:D. List of credit card account numbers.Feedback:Yes...you do not need to provide your credit card account numbers in order to obtain a copy of your credit report. uestion 1 0 out of 10 points A smart card resembles a standard credit card, but it usually contains an embedded microprocessor or computer chip which could be used for wireless communications. Selected Answer:FalseFeedback:No...while it may sound futuristic, smart cards can hold your identification materials and medical records, and it may even communicate wirelessly with a computer network (such as your bank's).Question 2 10 out of 10 points Some of the money in your savings account is "frozen"--unavailable for your use--if you have a secured credit card. Selected Answer:TrueFeedback:Yes...this "frozen" money is the collateral for your spending limit. It ensures the bank will get its money back from your credit card purchases. Question 3 10 out of 10 points Suppose you are interested in getting a credit card for your daily necessities, suchas food, clothing, and drugstore items. Which of the following types of credit cards would be best for this use?