Categories
Finance Flashcards

Chapter 6 – FINN1003

Using _______ to handle financial emergencies is recommended.a. a checking accountb. loansc. creditd. savings d. savings
Finance charges on two credit cards with the same state annual percentage rate (APR):a. will be the same as the rate calculated in the federal lawb. will always be the samec. will be determines by the type of credit card usedd. will be determined by the method used to calculate balancese. will be decided by the credit bureau d. will be determined by the method used to calculate balances
Retail charge cards are advantageous to merchants because:a. they help the merchants file for bankruptcyb. they help build consumer loyaltyc. they help the merchants in saving taxesd. they help the merchants get loanse. they help the merchants in giving loans to their supplier b. they help build consumer loyalty
True or False: The purpose of a credit report is to evaluate the kind of risk you pose to the lender True
The first step to take in establishing credit history is to…a. pay cash for all purchasesb. get a credit cardc. open checking and savings accountsd. borrow from neighbors c. open checking and savings accounts
Which of the following is true about credit scoring systems?a. Stronger the personal traits of a person, lower will be his credit scoreb. Credit unions calculate and sell credit scores to lendersc. Lower scores are better than higher scoresd. Females receive higher score than malese. Scoring systems are based on statistical studies e. Scoring systems are based on statistical studies
With a bank credit card, one can often avoid interest charges if…a. the account balance is below the credit limitb. the minimum payment is made every monthc. the account is a revolving credit accountd. the account balance is paid in full every month d. the account balance is paid in full every month
William uses his bank credit card frequently; however, he always pays off the total balance on the card each month. What should William look for in a credit card given way he uses one? a. High annual fee and low interest rateb. Low annual fee and short grace periodc. No annual fee and short grace periodd. No annual fee and long grace period d. No annual fee and long grace period
Interest will usually being to accrue immediately when you use a bank credit card to:a. meet a financial emergencyb. send paymentsc. make purchasesd. comput finance chargese. get cash advances e. get cash advances
Any credit card purchase will effectively be an interest-free loan if you:a. pay the previous balance by the due dateb. pay the minimum paymentc. receive a cash advanced. pay the entire balance on or before the due date d. pay the entire balance on or before the due date
True of False: People who let their credit balances build up are mortgaging their future True
True or False: The amount of finance charged one pays on a credit card depends only on the annual percentage rate (APR) and the amount one charges False
True or False: A credit report os routinely used to predict creditworthiness True
The decision whether or not to grant you credit will be made by….a. the credit bureau b. the credit card holderc. The Federal Trade Commissiond. Individual creditiors d. individual creditors
True or False: One can and should check his or her credit bureau file regularly true
True or False: Overspending will help you manage your budget effectively False

Leave a Reply

Your email address will not be published. Required fields are marked *