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Consumer Credit Workplace Essentials
Chase is concerned he will be turned down for a loan because he is a single male. What law protects him against this concern?
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Equal Credit Opportunity Act
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Fair Credit Billing Act
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Fair Credit Reporting Act
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Fair Debt Collections Act
When you purchase something you do not pay for immediately:
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debit
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asset
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credit
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FICO
A person or organization that extends credit to a consumer.
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loaner
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extender
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mom
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creitor
A person who uses credit
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debtor
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creditor
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auditor
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principal
Your ability to earn money now and in the future. Included in your financial history when applying for credit.
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earning power
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credit rating
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assets
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future investment
Which of the following is the definition of available credit?
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The difference between the maximum amount you can owe and the actual amount you owe on a credit card.
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The maximum amount that a credit card holder can owe on a credit card at one time.
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The cost of using a credit card for the current billing period.
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A purchase, cash advance, balance transfer, or payment made using a credit card.
What is an interest rate?
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The fee that is paid to borrow money.
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The non-interest portion of a loan.
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The rate lenders charge borrowers for money
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The paying off of a debt with a fixed repayment schedule in regular installments over a period of time
The amount charged if your payment is received after the billing due date.
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late payment fee
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overdue fee
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withdrawal fee
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loser fee
A person who has a good personal credit record is generally charged a lower interest rate when he applies for a loan.
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True
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False
Which of the following would affect a good credit record?
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Avoid late payments
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Maintain a good habit of financial discipline
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Avoid impulse purchases
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Apply for more credit cards
What is a good way to maintain financial discipline?
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Evaluate budgeted against actual spending
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Apply for credit cards when there are promotions
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Utilise the credit limit of a credit card fully
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Overdraft money to make purchases
We should __________ to Keep a good credit record.
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Keep less than two credit cards
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avoid late payments
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keep the loan to as little as possible
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keep the number of purchase to as few as possible
What is debt?
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Another word for death
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Something, typically money, that is owed or due
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A loan on which you do not have to pay interest
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That which is incurred during childhood and consummated in college
Revolving credit is...
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a type of credit that can be used repeatedly up to a certain limit as long as the account is open and payments are made on time.
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a type of credit that can be used only once up to a certain limit and must be closed immediately after all payments are due
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a spinning door with money in it
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a round device that holds credit cards and spins, making it easy to shuffle through all your credit cards quickly
What is an interest rate?
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it is your level of interest about a certain topic expressed as a percentage of your total interest
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The amount in terms of dollars that you have to pay back on a purchase
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it is the rate at which your interest in something expires. The higher the number, the quicker your interest expires
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The amount in terms of a rate or percentage that you have to pay back on an amount borrowed
What is a credit report?
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A detailed report of an individual's credit history prepared by a credit bureau and used by a lender in determining a loan applicant's creditworthiness
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A detailed report of a bank's credit history prepared by a credit expert and used by consumers in determining a bank's creditworthiness
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A report which shows which credit cards are better than others
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A report invented by Allan Greenspan and credited to Al Gore
What is bankruptcy?
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A point in time where everything a person owns has been given to charity
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A legal proceeding involving a person or business that is unable to repay outstanding debts in which the debtor's assets are measured and evaluated, whereupon the assets are used to repay a portion of outstanding debt
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When a bank is built on top of a volcano and the volcano erupts causing a bank(e)ruptcy
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A legal proceeding involving a person or business that is more than capable of repaying outstanding debts in which all of the debtor's assets are measured and evaluated, and then given away to those in need
A bad credit report cannot affect my chances of getting a job.
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True
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False
The most common credit scoring system is called the
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FCO
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FECO
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FISO
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FICO
One of the 5 C's of credit that shows a person's willingness to pay is
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capital
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collateral
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character
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capacity
Which one is considered a danger of using a credit card
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no cash needed
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leads to overspending
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convenient
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earns rewards
One of the 5 C's of credit that refers to property that secures the loan is
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capital
0%
collateral
0%
character
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capacity
Shopaholics and young adults are most vulnerable to misusing credit.
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True
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False
Credit when effectively used, can help you have more and enjoy more.
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True
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False
Captain America has been very responsible with his credit card. He uses AMERICAN EXPRESS card to pay most of his expenses. His credit rating is excellent, never missing any payments and always on time. His average monthly balance is $8,According to the terms of his credit card, his APR is 10.99% to 25.99% based on creditworthiness. Estimate the amount of interest he will pay for a year based on his average monthly balance.
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$75.63
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$907.50
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$1,526.25
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$2,145.00
What number is 60%of 25?
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1.5
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15
0%
13
0%
13.6
APR stands for
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Annual Percentage Rate
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Annual Prime Rate
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Actual Percentage Rate
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Available Percentage Rate
This is a loan to purchase a home or other real estate
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Home loan
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Sub-prime loan
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Predatory lending
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Mortgage
If Consumer Laws weren't in place, some businesses might be tempted to be a bit dishonest.
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True
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False
____________ is the federal law that regulates credit reporting agencies and compels them to insure the information they gather and distribute is a fair and accurate summary of a consumer’s credit history.
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Fair Debt Collections Protection Act
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Truth in Lending Act
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Fair Credit Reporting Act
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Fair Lending Act
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Telephone Consumer Reporting Act
______________ is a United States federal law enacted in 1974 as an amendment to the Truth in Lending Act (codified at 15 U.S.C. § 1601 et seq.). Its purpose is to protect consumers from unfair billing practices and to provide a mechanism for addressing billing errors in "open end" credit accounts, such as credit card or charge card accounts.
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Fair Debt Collections Protection Act
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Fair Lending Act
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Truth in Lending Act
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Fair Credit Reporting Act
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Telephone Consumer Reporting Act
____________ is the policy of the State to protect its citizens from a lack of awareness of the true cost of credit to the user by assuring a full disclosure of such cost with a view of preventing the uninformed use of credit to the detriment of the national economy.
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Fair Debt Collections Protection Act
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Fair Credit Reporting Act
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Fair Lending Act
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Telephone Consumer Reporting Act
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Truth in Lending Act
Annual Percentage Rate (APR) is the yearly percentage rate of the finance charge.
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True
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False
An interest rate is?
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A low interest rate offered for a limited time by a company.
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The yearly percentage rate of the finance charge.
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The amount of interest charged to an account for the billing cycle.
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The money you gain after paying your bills.
What is an introductory rate?
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An introduction to the credit card
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A fee charged
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The interest rate of a specified period.
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A low interest rate offered for a limited time, usually for the first 3 to 6 months.
A credit card is a source of free money.
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True
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False
To provide protection to the consumers against the improper behaviour of the producers and sellers is called ____________.
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Consumers Protection Act
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Consumer Protection
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Consumer Welfare
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Consumer Education
Marissa got a letter from Nordstrom stating that her credit application had been approved. Marissa can spend up to 5,000 and the annual interest rate is 15.99%. Nordstrom followed what law?
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Credit Card Act of 2009
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Usury law
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Truth In Lending Law
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Fair Credit Reporting Act
Promotes accuracy, fairness, and privacy of information in the files of consumer reporting agencies
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Truth in Lending Act
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Equal Credit Opportunity Act
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Fair Credit Reporting Act
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Fair Debt Collection Act
The Consumer Fraud that concerns people the most is
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Phone scams
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Identity Theft
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Warranty Issues
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False Advertisement
The amount charged if your payment is received after the billing due date.
Report Question
0%
overdue fee
0%
late payment fee
0%
withdrawal fee
0%
loser fee
What is debt?
Report Question
0%
Another word for death
0%
Something, typically money, that is owed or due
0%
A loan on which you do not have to pay interest
0%
That which is incurred during childhood and consummated in college
Revolving credit is...
Report Question
0%
a type of credit that can be used repeatedly up to a certain limit as long as the account is open and payments are made on time.
0%
a type of credit that can be used only once up to a certain limit and must be closed immediately after all payments are due
0%
a spinning door with money in it
0%
a round device that holds credit cards and spins, making it easy to shuffle through all your credit cards quickly
What is an interest rate?
Report Question
0%
it is your level of interest about a certain topic expressed as a percentage of your total interest
0%
The amount in terms of dollars that you have to pay back on a purchase
0%
it is the rate at which your interest in something expires. The higher the number, the quicker your interest expires
0%
The amount in terms of a rate or percentage that you have to pay back on an amount borrowed
What is a credit report?
Report Question
0%
A detailed report of an individual's credit history prepared by a credit bureau and used by a lender in determining a loan applicant's creditworthiness
0%
A detailed report of a bank's credit history prepared by a credit expert and used by consumers in determining a bank's creditworthiness
0%
A report which shows which credit cards are better than others
0%
A report invented by Allan Greenspan and credited to Al Gore
What is bankruptcy?
Report Question
0%
A point in time where everything a person owns has been given to charity
0%
A legal proceeding involving a person or business that is unable to repay outstanding debts in which the debtor's assets are measured and evaluated, whereupon the assets are used to repay a portion of outstanding debt
0%
When a bank is built on top of a volcano and the volcano erupts causing a bank(e)ruptcy
0%
A legal proceeding involving a person or business that is more than capable of repaying outstanding debts in which all of the debtor's assets are measured and evaluated, and then given away to those in need
One of the 5 C's of credit that shows a person's willingness to pay is
Report Question
0%
capital
0%
collateral
0%
character
0%
capacity
Which one is considered a danger of using a credit card
Report Question
0%
no cash needed
0%
leads to overspending
0%
convenient
0%
earns rewards
One of the 5 C's of credit that refers to property that secures the loan is
Report Question
0%
capital
0%
collateral
0%
character
0%
capacity
Captain America has been very responsible with his credit card. He uses AMERICAN EXPRESS card to pay most of his expenses. His credit rating is excellent, never missing any payments and always on time. His average monthly balance is $8,According to the terms of his credit card, his APR is 10.99% to 25.99% based on creditworthiness. Estimate the amount of interest he will pay for a year based on his average monthly balance.
Report Question
0%
$75.63
0%
$907.50
0%
$1,526.25
0%
$2,145.00
If Consumer Laws weren't in place, some businesses might be tempted to be a bit dishonest.
Report Question
0%
True
0%
False
The Consumer Fraud that concerns people the most is
Report Question
0%
Phone scams
0%
Identity Theft
0%
Warranty Issues
0%
False Advertisement
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