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các câu hỏi trắc nghiệm môn kế hoách tài chính, financial planing, đầy đủ, điểm cao, ôn thi cho final và các bài thi học phần, đại học Hà Nội, All of the following are key items lenders look at in granting credit except, FMT, ngành tài chính ngân hàng,
lOMoARcPSD|10289698 Chapter Using Credit - Nothing to say Principles of Finance (Trường Đại học Ngoại thương) Studocu is not sponsored or endorsed by any college or university Downloaded by Thanh H?ng (thanhhang.hn131099@gmail.com) lOMoARcPSD|10289698 Chapter 6—Using Credit Using credit is the ideal way to provide for financial emergencies a True b Fals e ANSWER: False POINTS: DIFFICULTY Easy : LEARNING O PFIN.BILL.17.6-1 - LO: 6-1 BJECTIVES: NATIONAL S United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills TANDARDS: STATE STAN United States - AK - DISC: Capital budgeting and cost - DISC: Capital budgeting DARDS: and cost of capital United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Understanding Saving is the preferred way to provide for financial emergencies a True b Fals e ANSWER: True POINTS: DIFFICULTY Easy : LEARNING O PFIN.BILL.17.6-1 - LO: 6-1 BJECTIVES: NATIONAL S United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills TANDARDS: STATE STAN United States - AK - DISC: Capital budgeting and cost - DISC: Capital budgeting DARDS: and cost of capital United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Understanding Paying only the minimum payment each time on a credit card usually enables one to pay off the balance fairly quickly a True b Fals e ANSWER: False POINTS: DIFFICULTY Easy : LEARNING O PFIN.BILL.17.6-1 - LO: 6-1 BJECTIVES: NATIONAL S United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills Cengage Learning Testing, Powered by Cognero Downloaded by Thanh H?ng (thanhhang.hn131099@gmail.com) Page lOMoARcPSD|10289698 Chapter 6—Using Credit TANDARDS: STATE STAN United States - AK - DISC: Capital budgeting and cost - DISC: Capital budgeting DARDS: and cost of capital United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Understanding One can be overusing credit even though he can afford to make minimum monthly payments on time a True b Fals e ANSWER: True POINTS: DIFFICULTY Easy : LEARNING O PFIN.BILL.17.6-1 - LO: 6-1 BJECTIVES: NATIONAL S United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills TANDARDS: STATE STAN United States - AK - DISC: Capital budgeting and cost - DISC: Capital budgeting DARDS: and cost of capital United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Remembering Credit should not consistently be used for nondurable goods a True b Fals e ANSWER: True POINTS: DIFFICULTY Easy : LEARNING O PFIN.BILL.17.6-1 - LO: 6-1 BJECTIVES: NATIONAL S United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills TANDARDS: STATE STAN United States - AK - DISC: Capital budgeting and cost - DISC: Capital budgeting DARDS: and cost of capital United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Remembering Credit cards with very low minimum payment requirements are in the consumer's best interest a True b Fals e Cengage Learning Testing, Powered by Cognero Downloaded by Thanh H?ng (thanhhang.hn131099@gmail.com) Page lOMoARcPSD|10289698 Chapter 6—Using Credit ANSWER: False POINTS: DIFFICULTY Moderate : LEARNING O PFIN.BILL.17.6-1 - LO: 6-1 BJECTIVES: NATIONAL S United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills TANDARDS: STATE STAN United States - AK - DISC: Capital budgeting and cost - DISC: Capital budgeting DARDS: and cost of capital United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Understanding A good rule to remember when considering the use of credit is that the product purchased on credit should outlive the amount of time it takes to pay it off a True b Fals e ANSWER: True POINTS: DIFFICULTY Moderate : LEARNING O PFIN.BILL.17.6-1 - LO: 6-1 BJECTIVES: NATIONAL S United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills TANDARDS: STATE STAN United States - AK - DISC: Capital budgeting and cost - DISC: Capital budgeting DARDS: and cost of capital United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Understanding Never adding up all your bills is one of the signs that you may be headed for serious credit problems a True b Fals e ANSWER: True POINTS: DIFFICULTY Easy : LEARNING O PFIN.BILL.17.6-1 - LO: 6-1 BJECTIVES: NATIONAL S United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills TANDARDS: STATE STAN United States - AK - DISC: Capital budgeting and cost - DISC: Capital budgeting DARDS: and cost of capital Cengage Learning Testing, Powered by Cognero Downloaded by Thanh H?ng (thanhhang.hn131099@gmail.com) Page lOMoARcPSD|10289698 Chapter 6—Using Credit United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Understanding Using more than 20 percent of one's take-home income to pay off consumer debt is one of the signs that one may be headed for serious credit problems a True b Fals e ANSWER: True POINTS: DIFFICULTY Easy : LEARNING O PFIN.BILL.17.6-1 - LO: 6-1 BJECTIVES: NATIONAL S United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills TANDARDS: STATE STAN United States - AK - DISC: Capital budgeting and cost - DISC: Capital budgeting DARDS: and cost of capital United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Remembering 10 Having a checking account tells a creditor that you have some experience in managing your own funds a True b Fals e ANSWER: True POINTS: DIFFICULTY Easy : LEARNING O PFIN.BILL.17.6-2 - LO: 6-2 BJECTIVES: NATIONAL S United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills TANDARDS: STATE STAN United States - AK - DISC: Capital budgeting and cost - DISC: Capital budgeting DARDS: and cost of capital United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Remembering 11 Always paying cash is helpful in establishing a high level of creditworthiness a True b Fals e ANSWER: False POINTS: Cengage Learning Testing, Powered by Cognero Downloaded by Thanh H?ng (thanhhang.hn131099@gmail.com) Page lOMoARcPSD|10289698 Chapter 6—Using Credit DIFFICULTY Moderate : LEARNING O PFIN.BILL.17.6-2 - LO: 6-2 BJECTIVES: NATIONAL S United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills TANDARDS: STATE STAN United States - AK - DISC: Capital budgeting and cost - DISC: Capital budgeting DARDS: and cost of capital United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Analyzing 12 Having arranged and fully repaid a small loan should help improve creditworthiness a True b Fals e ANSWER: True POINTS: DIFFICULTY Easy : LEARNING O PFIN.BILL.17.6-2 - LO: 6-2 BJECTIVES: NATIONAL S United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills TANDARDS: STATE STAN United States - AK - DISC: Capital budgeting and cost - DISC: Capital budgeting DARDS: and cost of capital United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Understanding 13 The purpose of a credit report is to evaluate the kind of risk you pose to the lender a True b Fals e ANSWER: True POINTS: DIFFICULTY Easy : LEARNING O PFIN.BILL.17.6-2 - LO: 6-2 BJECTIVES: NATIONAL S United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills TANDARDS: STATE STAN United States - AK - DISC: Capital budgeting and cost - DISC: Capital budgeting DARDS: and cost of capital United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Remembering Cengage Learning Testing, Powered by Cognero Downloaded by Thanh H?ng (thanhhang.hn131099@gmail.com) Page lOMoARcPSD|10289698 Chapter 6—Using Credit 14 Credit reports are routinely used to predict creditworthiness a True b Fals e ANSWER: True POINTS: DIFFICULTY Easy : LEARNING O PFIN.BILL.17.6-2 - LO: 6-2 BJECTIVES: NATIONAL S United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills TANDARDS: STATE STAN United States - AK - DISC: Capital budgeting and cost - DISC: Capital budgeting DARDS: and cost of capital United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Remembering 15 Paying a loan off much quicker than scheduled is one way to build a good credit rating a True b Fals e ANSWER: True POINTS: DIFFICULTY Easy : LEARNING O PFIN.BILL.17.6-2 - LO: 6-2 BJECTIVES: NATIONAL S United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills TANDARDS: STATE STAN United States - AK - DISC: Capital budgeting and cost - DISC: Capital budgeting DARDS: and cost of capital United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Remembering 16 A debt safety ratio of 25% might be a signal of financial trouble ahead a True b Fals e ANSWER: True POINTS: DIFFICULTY Easy : LEARNING O PFIN.BILL.17.6-2 - LO: 6-2 BJECTIVES: NATIONAL S United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills Cengage Learning Testing, Powered by Cognero Downloaded by Thanh H?ng (thanhhang.hn131099@gmail.com) Page lOMoARcPSD|10289698 Chapter 6—Using Credit TANDARDS: STATE STAN United States - AK - DISC: Capital budgeting and cost - DISC: Capital budgeting DARDS: and cost of capital United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Remembering 17 A debt safety ratio of 15% would generally be a signal of financial trouble ahead a True b Fals e ANSWER: False POINTS: DIFFICULTY Easy : LEARNING O PFIN.BILL.17.6-2 - LO: 6-2 BJECTIVES: NATIONAL S United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills TANDARDS: STATE STAN United States - AK - DISC: Capital budgeting and cost - DISC: Capital budgeting DARDS: and cost of capital United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Remembering 18 It is safe, and often required, to give your Social Security number as a form of identification when using a credit card a True b Fals e ANSWER: False POINTS: DIFFICULTY Easy : LEARNING O PFIN.BILL.17.6-6 - LO: 6-6 BJECTIVES: NATIONAL S United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills TANDARDS: STATE STAN United States - AK - DISC: Capital budgeting and cost - DISC: Capital budgeting DARDS: and cost of capital United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Remembering 19 The most common forms of open account credit are bank credit cards and retail charge cards a True b Fals e Cengage Learning Testing, Powered by Cognero Downloaded by Thanh H?ng (thanhhang.hn131099@gmail.com) Page lOMoARcPSD|10289698 Chapter 6—Using Credit ANSWER: True POINTS: DIFFICULTY Easy : LEARNING O PFIN.BILL.17.6-3 - LO: 6-3 BJECTIVES: NATIONAL S United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills TANDARDS: STATE STAN United States - AK - DISC: Capital budgeting and cost - DISC: Capital budgeting DARDS: and cost of capital United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Remembering 20 The most common form of open account credit is the debit card a True b Fals e ANSWER: False POINTS: DIFFICULTY Moderate : LEARNING O PFIN.BILL.17.6-3 - LO: 6-3 BJECTIVES: NATIONAL S United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills TANDARDS: STATE STAN United States - AK - DISC: Capital budgeting and cost - DISC: Capital budgeting DARDS: and cost of capital United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Remembering 21 Auto loans are an example of open account credit since you can add to the debt when you purchase another vehicle a True b Fals e ANSWER: False POINTS: DIFFICULTY East : LEARNING O PFIN.BILL.17.6-3 - LO: 6-3 BJECTIVES: NATIONAL S United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills TANDARDS: STATE STAN United States - AK - DISC: Capital budgeting and cost - DISC: Capital budgeting DARDS: and cost of capital United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets Cengage Learning Testing, Powered by Cognero Downloaded by Thanh H?ng (thanhhang.hn131099@gmail.com) Page lOMoARcPSD|10289698 Chapter 6—Using Credit and Interest Rates KEYWORDS: Bloom's: Understanding 22 A credit limit refers to the maximum amount the cardholder can owe the issuer at any point in time a True b Fals e ANSWER: True POINTS: DIFFICULTY Easy : LEARNING O PFIN.BILL.17.6-3 - LO: 6-3 BJECTIVES: NATIONAL S United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills TANDARDS: STATE STAN United States - AK - DISC: Capital budgeting and cost - DISC: Capital budgeting DARDS: and cost of capital United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Remembering 23 The key to creditworthiness is to keep your debt safety ratio as high as possible a True b Fals e ANSWER: False POINTS: DIFFICULTY Moderate : LEARNING O PFIN.BILL.17.6-2 - LO: 6-2 BJECTIVES: NATIONAL S United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills TANDARDS: STATE STAN United States - AK - DISC: Capital budgeting and cost - DISC: Capital budgeting DARDS: and cost of capital United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Remembering 24 Credit reports on individual borrowers are issued by credit bureaus a True b Fals e ANSWER: True POINTS: DIFFICULTY Easy : Cengage Learning Testing, Powered by Cognero Downloaded by Thanh H?ng (thanhhang.hn131099@gmail.com) Page lOMoARcPSD|10289698 Chapter 6—Using Credit and Interest Rates KEYWORDS: Bloom's: Applying 119 Joe and Jane have a tendency to build up large balances on their credit cards Which of the following would be least important for them? a no annual fee b low interest rates on balances c long grace period d method of calculating balances e a and b ANSWER: c POINTS: DIFFICULTY Moderate : LEARNING O PFIN.BILL.17.6-5 - LO: 6-5 BJECTIVES: NATIONAL S United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills TANDARDS: STATE STAN United States - AK - DISC: Capital budgeting and cost - DISC: Capital budgeting DARDS: and cost of capital United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Applying 120 When canceling a credit card, you should cut up the card and that you are canceling your account a inform the issuer in writing b call the issuer and explain c inform the credit bureau in writing d call the credit bureau and explain e all of the above ANSWER: a POINTS: DIFFICULTY Moderate : LEARNING O PFIN.BILL.17.6-6 - LO: 6-6 BJECTIVES: NATIONAL S United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills TANDARDS: STATE STAN United States - AK - DISC: Capital budgeting and cost - DISC: Capital budgeting DARDS: and cost of capital United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Remembering 121 When paying for something with a check, don't give your number Cengage Learning Testing, Powered by Cognero Downloaded by Thanh H?ng (thanhhang.hn131099@gmail.com) Page 49 lOMoARcPSD|10289698 Chapter 6—Using Credit a Social Security b credit card c driver's license d a and b e a, b, and c ANSWER: d POINTS: DIFFICULTY Easy : LEARNING O PFIN.BILL.17.6-6 - LO: 6-6 BJECTIVES: NATIONAL S United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills TANDARDS: STATE STAN United States - AK - DISC: Capital budgeting and cost - DISC: Capital budgeting DARDS: and cost of capital United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Remembering 122 Which of the following household devices could help you protect yourself against identity theft? a DVR b Cell phone c Shredder d Laptop e Tablet ANSWER: c POINTS: DIFFICULTY Easy : LEARNING O PFIN.BILL.17.6-6 - LO: 6-6 BJECTIVES: NATIONAL S United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills TANDARDS: STATE STAN United States - AK - DISC: Capital budgeting and cost - DISC: Capital budgeting DARDS: and cost of capital United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Understanding 123 Personal insolvency can be legally satisfied by a Chapter 13 bankruptcy b relinquishing all credit cards c Chapter bankruptcy Cengage Learning Testing, Powered by Cognero Downloaded by Thanh H?ng (thanhhang.hn131099@gmail.com) Page 50 lOMoARcPSD|10289698 Chapter 6—Using Credit d both b and c e both a and c ANSWER: e POINTS: DIFFICULTY Moderate : LEARNING O PFIN.BILL.17.6-6 - LO: 6-6 BJECTIVES: NATIONAL S United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills TANDARDS: STATE STAN United States - AK - DISC: Capital budgeting and cost - DISC: Capital budgeting DARDS: and cost of capital United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Remembering 124 Chapter bankruptcy will a eliminate financial obligations b result in the loss of all one's assets c stay on one's credit record up to 10 years d a and c e a, b, and c ANSWER: c POINTS: DIFFICULTY Moderate : LEARNING O PFIN.BILL.17.6-6 - LO: 6-6 BJECTIVES: NATIONAL S United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills TANDARDS: STATE STAN United States - AK - DISC: Capital budgeting and cost - DISC: Capital budgeting DARDS: and cost of capital United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Remembering 125 Chapter bankruptcy will typically a eliminate most debt obligations b require monthly payments to a bankruptcy trustee c stay on one's credit record up to 12 years d a and c e a, b, and c ANSWER: a POINTS: Cengage Learning Testing, Powered by Cognero Downloaded by Thanh H?ng (thanhhang.hn131099@gmail.com) Page 51 lOMoARcPSD|10289698 Chapter 6—Using Credit DIFFICULTY Moderate : LEARNING O PFIN.BILL.17.6-6 - LO: 6-6 BJECTIVES: NATIONAL S United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills TANDARDS: STATE STAN United States - AK - DISC: Capital budgeting and cost - DISC: Capital budgeting DARDS: and cost of capital United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Remembering 126 Credit bureaus a will send you a free copy of your credit report whenever you ask b may charge up to $20 for a copy of your credit report c are required to correct errors only when a creditor asks them to d will all of these e will none of these ANSWER: e POINTS: DIFFICULTY Challenging : LEARNING O PFIN.BILL.17.6-4 - LO: 6-4 BJECTIVES: NATIONAL S United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills TANDARDS: STATE STAN United States - AK - DISC: Capital budgeting and cost - DISC: Capital budgeting DARDS: and cost of capital United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Remembering 127 Methods used by identity thieves to obtain personal information include all except a dumpster diving b phishing c skimming d pretexting e skimping ANSWER: e POINTS: DIFFICULTY Challenging : LEARNING O PFIN.BILL.17.6-6 - LO: 6-6 BJECTIVES: NATIONAL S United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills Cengage Learning Testing, Powered by Cognero Downloaded by Thanh H?ng (thanhhang.hn131099@gmail.com) Page 52 lOMoARcPSD|10289698 Chapter 6—Using Credit TANDARDS: STATE STAN United States - AK - DISC: Capital budgeting and cost - DISC: Capital budgeting DARDS: and cost of capital United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Remembering 128 The year after the Credit Card Act of 2009 went into effect a credit card balances b late payments increased rose c payment defaults d there was a drop in the use of debit cards relative to declined credit cards e a, b, and c are correct ANSWER: c POINTS: DIFFICULTY: Challenging LEARNING OBJECT PFIN.BILL.17.6-3 - LO: 6-3 IVES: NATIONAL STANDA United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills RDS: STATE STANDARDS United States - KS - DISC: Financial Markets and Inte - DISC: Financial : Markets and Interest Rates KEYWORDS: Bloom's: Remembering INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement Select A for the first item, B for the second item, and C if neither item will correctly complete the statement 129 Using [credit | savings] to handle financial emergencies is the recommended choice ANSWER: b POINTS: DIFFICULTY Moderate : LEARNING O PFIN.BILL.17.6-1 - LO: 6-1 BJECTIVES: NATIONAL S United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills TANDARDS: STATE STAN United States - AK - DISC: Capital budgeting and cost - DISC: Capital budgeting DARDS: and cost of capital United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Understanding 130 A proper use of open account credit would be to buy a [food | washing machine] ANSWER: b POINTS: DIFFICULTY Easy : LEARNING O PFIN.BILL.17.6-1 - LO: 6-1 Cengage Learning Testing, Powered by Cognero Downloaded by Thanh H?ng (thanhhang.hn131099@gmail.com) Page 53 lOMoARcPSD|10289698 Chapter 6—Using Credit BJECTIVES: NATIONAL S United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills TANDARDS: STATE STAN United States - AK - DISC: Capital budgeting and cost - DISC: Capital budgeting DARDS: and cost of capital United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Understanding 131 The first step to take in establishing a credit history is to [get a credit card | open checking and savings accounts] ANSWER: b POINTS: DIFFICULTY Easy : LEARNING O PFIN.BILL.17.6-2 - LO: 6-2 BJECTIVES: NATIONAL S United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills TANDARDS: STATE STAN United States - AK - DISC: Capital budgeting and cost - DISC: Capital budgeting DARDS: and cost of capital United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Remembering 132 Most creditors [will | will not] be willing to work something out with you if you are having difficulty meeting your payments ANSWER: a POINTS: DIFFICULTY Easy : LEARNING O PFIN.BILL.17.6-2 - LO: 6-2 BJECTIVES: NATIONAL S United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills TANDARDS: STATE STAN United States - AK - DISC: Capital budgeting and cost - DISC: Capital budgeting DARDS: and cost of capital United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Remembering 133 You are likely to have financial difficulty if your personal credit obligations exceed [15% | 20%] of your take home pay ANSWER: b POINTS: DIFFICULTY Moderate : LEARNING O PFIN.BILL.17.6-2 - LO: 6-2 BJECTIVES: Cengage Learning Testing, Powered by Cognero Downloaded by Thanh H?ng (thanhhang.hn131099@gmail.com) Page 54 lOMoARcPSD|10289698 Chapter 6—Using Credit NATIONAL S United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills TANDARDS: STATE STAN United States - AK - DISC: Capital budgeting and cost - DISC: Capital budgeting DARDS: and cost of capital United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Remembering 134 Nancy's take-home income is $3,000 per month, and she currently has $700 of monthly consumer debt payments According to the general rules of thumb, Nancy [is | is not] in a position to take on additional consumer debt ANSWER: b POINTS: DIFFICULTY Challenging : LEARNING O PFIN.BILL.17.6-2 - LO: 6-2 BJECTIVES: NATIONAL S United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills TANDARDS: STATE STAN United States - AK - DISC: Capital budgeting and cost - DISC: Capital budgeting DARDS: and cost of capital United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Evaluating 135 An example of open account credit would be a bank [debit | credit] card ANSWER: b POINTS: DIFFICULTY Easy : LEARNING O PFIN.BILL.17.6-3 - LO: 6-3 BJECTIVES: NATIONAL S United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills TANDARDS: STATE STAN United States - AK - DISC: Capital budgeting and cost - DISC: Capital budgeting DARDS: and cost of capital United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Remembering 136 Most bank credit cards have interest rates that will [remain the same as long as you hold the card | be adjusted as interest rates in general rise and fall] ANSWER: b POINTS: DIFFICULTY Easy : LEARNING O PFIN.BILL.17.6-3 - LO: 6-3 BJECTIVES: NATIONAL S United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills Cengage Learning Testing, Powered by Cognero Downloaded by Thanh H?ng (thanhhang.hn131099@gmail.com) Page 55 lOMoARcPSD|10289698 Chapter 6—Using Credit TANDARDS: STATE STAN United States - AK - DISC: Capital budgeting and cost - DISC: Capital budgeting DARDS: and cost of capital United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Remembering 137 Rebate cards are most useful for consumers who charge a lot and [maintain | not maintain] large balances on their cards ANSWER: b POINTS: DIFFICULTY Moderate : LEARNING O PFIN.BILL.17.6-3 - LO: 6-3 BJECTIVES: NATIONAL S United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills TANDARDS: STATE STAN United States - AK - DISC: Capital budgeting and cost - DISC: Capital budgeting DARDS: and cost of capital United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Analyzing 138 Student credit cards usually [do | not] require parental or guardian guarantees ANSWER: b POINTS: DIFFICULTY Easy : LEARNING O PFIN.BILL.17.6-3 - LO: 6-3 BJECTIVES: NATIONAL S United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills TANDARDS: STATE STAN United States - AK - DISC: Capital budgeting and cost - DISC: Capital budgeting DARDS: and cost of capital United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Understanding 139 One condition of a secured credit card is that the holder must [pay a higher rate of interest | deposit an amount equal to the credit line into a CD] ANSWER: b POINTS: DIFFICULTY Moderate : LEARNING O PFIN.BILL.17.6-3 - LO: 6-3 BJECTIVES: NATIONAL S United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills TANDARDS: Cengage Learning Testing, Powered by Cognero Downloaded by Thanh H?ng (thanhhang.hn131099@gmail.com) Page 56 lOMoARcPSD|10289698 Chapter 6—Using Credit STATE STAN United States - AK - DISC: Capital budgeting and cost - DISC: Capital budgeting DARDS: and cost of capital United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Remembering 140 Interest paid on a [home equity line of credit | credit card] would be deductible if you itemize your deductions on your federal tax return ANSWER: a POINTS: DIFFICULTY Easy : LEARNING O PFIN.BILL.17.6-3 - LO: 6-3 BJECTIVES: NATIONAL S United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills TANDARDS: STATE STAN United States - AK - DISC: Capital budgeting and cost - DISC: Capital budgeting DARDS: and cost of capital United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Remembering 141 A person who pays his credit balance off every month should look for a credit card with a [long | short] grace period ANSWER: a POINTS: DIFFICULTY Moderate : LEARNING O PFIN.BILL.17.6-5 - LO: 6-5 BJECTIVES: NATIONAL S United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills TANDARDS: STATE STAN United States - AK - DISC: Capital budgeting and cost - DISC: Capital budgeting DARDS: and cost of capital United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Understanding 142 A person who pays her credit balance off every month should look for a credit card with [a low interest rate | no annual fee] ANSWER: b POINTS: DIFFICULTY Moderate : LEARNING O PFIN.BILL.17.6-5 - LO: 6-5 BJECTIVES: NATIONAL S United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills TANDARDS: STATE STAN United States - AK - DISC: Capital budgeting and cost - DISC: Capital budgeting Cengage Learning Testing, Powered by Cognero Downloaded by Thanh H?ng (thanhhang.hn131099@gmail.com) Page 57 lOMoARcPSD|10289698 Chapter 6—Using Credit and cost of capital United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Analyzing DARDS: 143 The decision whether or not to grant you credit will be made by [individual creditors | the credit bureau] ANSWER: a POINTS: DIFFICULTY Easy : LEARNING O PFIN.BILL.17.6-4 - LO: 6-4 BJECTIVES: NATIONAL S United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills TANDARDS: STATE STAN United States - AK - DISC: Capital budgeting and cost - DISC: Capital budgeting DARDS: and cost of capital United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Remembering 144 A home equity line of credit is one of the [most | least] expensive forms of consumer credit ANSWER: b POINTS: DIFFICULTY Easy : LEARNING O PFIN.BILL.17.6-3 - LO: 6-3 BJECTIVES: NATIONAL S United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills TANDARDS: STATE STAN United States - AK - DISC: Capital budgeting and cost - DISC: Capital budgeting DARDS: and cost of capital United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Remembering 145 Your chances of being approved for a loan [increase | decrease] the higher your credit score ANSWER: a POINTS: DIFFICULTY Easy : LEARNING O PFIN.BILL.17.6-4 - LO: 6-4 BJECTIVES: NATIONAL S United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills TANDARDS: STATE STAN United States - AK - DISC: Capital budgeting and cost - DISC: Capital budgeting DARDS: and cost of capital United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates Cengage Learning Testing, Powered by Cognero Downloaded by Thanh H?ng (thanhhang.hn131099@gmail.com) Page 58 lOMoARcPSD|10289698 Chapter 6—Using Credit KEYWORDS: Bloom's: Remembering 146 [The Wage Earner Plan | Straight bankruptcy] involves some type of debt restructuring ANSWER: a POINTS: DIFFICULTY Moderate : LEARNING O PFIN.BILL.17.6-6 - LO: 6-6 BJECTIVES: NATIONAL S United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills TANDARDS: STATE STAN United States - AK - DISC: Capital budgeting and cost - DISC: Capital budgeting DARDS: and cost of capital United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Remembering 147 Most of your debts would be totally discharged under Chapter [7 | 13] of the federal bankruptcy law ANSWER: a POINTS: DIFFICULTY Moderate : LEARNING O PFIN.BILL.17.6-6 - LO: 6-6 BJECTIVES: NATIONAL S United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills TANDARDS: STATE STAN United States - AK - DISC: Capital budgeting and cost - DISC: Capital budgeting DARDS: and cost of capital United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Remembering 148 The most expensive method of determining finance charges on revolving credit would be [ADB including new purchases | ADB excluding new purchases] ANSWER: a POINTS: DIFFICULTY Easy : LEARNING O PFIN.BILL.17.6-4 - LO: 6-4 BJECTIVES: NATIONAL S United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills TANDARDS: STATE STAN United States - AK - DISC: Capital budgeting and cost - DISC: Capital budgeting DARDS: and cost of capital United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Understanding Cengage Learning Testing, Powered by Cognero Downloaded by Thanh H?ng (thanhhang.hn131099@gmail.com) Page 59 lOMoARcPSD|10289698 Chapter 6—Using Credit 149 A credit scoring system might assign points according to your annual income and [gender | age] ANSWER: b POINTS: DIFFICULTY Moderate : LEARNING O PFIN.BILL.17.6-4 - LO: 6-4 BJECTIVES: NATIONAL S United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills TANDARDS: STATE STAN United States - AK - DISC: Capital budgeting and cost - DISC: Capital budgeting DARDS: and cost of capital United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Remembering 150 The decline in housing prices made it [harder | easier] for households to refinance their mortgages ANSWER: a POINTS: DIFFICULTY: Easy LEARNING OBJECT PFIN.BILL.17.6-1 - LO: 6-1 IVES: NATIONAL STANDA United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills RDS: STATE STANDARDS United States - KS - DISC: Financial Markets and Inte - DISC: Financial : Markets and Interest Rates KEYWORDS: Bloom's: Remembering 151 In the year after the Credit Card Act of 2009 was passed, there was a(n) [increase | decrease] in the use of debit cards relative to credit cards ANSWER: a POINTS: DIFFICULTY: Challenging LEARNING OBJECT PFIN.BILL.17.6-1 - LO: 6-1 IVES: NATIONAL STANDA United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills RDS: STATE STANDARDS United States - KS - DISC: Financial Markets and Inte - DISC: Financial : Markets and Interest Rates KEYWORDS: Bloom's: Remembering 152 In the year after the Credit Card Act of 2009 was passed, there was a(n) [increase | decrease] in defaults ANSWER: b POINTS: DIFFICULTY: Challenging LEARNING OBJECT PFIN.BILL.17.6-1 - LO: 6-1 IVES: NATIONAL STANDA United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills Cengage Learning Testing, Powered by Cognero Downloaded by Thanh H?ng (thanhhang.hn131099@gmail.com) Page 60 lOMoARcPSD|10289698 Chapter 6—Using Credit RDS: STATE STANDARDS United States - KS - DISC: Financial Markets and Inte - DISC: Financial : Markets and Interest Rates KEYWORDS: Bloom's: Remembering 153 In the year after the Credit Card Act of 2009 was passed, there was a(n) [increase | decrease] in late payments ANSWER: b POINTS: DIFFICULTY: Challenging LEARNING OBJECT PFIN.BILL.17.6-1 - LO: 6-1 IVES: NATIONAL STANDA United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills RDS: STATE STANDARDS United States - KS - DISC: Financial Markets and Inte - DISC: Financial : Markets and Interest Rates KEYWORDS: Bloom's: Remembering 154 Lindsey has a job with monthly take-home pay of $3,500 Using the suggested maximum debt safety ratio, what maximum debt burden per month can she assume? (Show all work.) ANSWER: The maximum debt safety ratio is 20 percent Therefore, Lindsey's maximum debt burden is 0.20 × $3,500 = $700 per month POINTS: DIFFICULTY Challenging : LEARNING O PFIN.BILL.17.6-2 - LO: 6-2 BJECTIVES: NATIONAL S United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills TANDARDS: STATE STAN United States - AK - DISC: Capital budgeting and cost - DISC: Capital budgeting DARDS: and cost of capital United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Analyzing 155 Ted and Karen have a combined take-home income of $4,500 Their total monthly payments on consumer debt are $875 What is their debt safety ratio? Are they exhibiting any sign of approaching credit problems? ANSWER: $875/$4,500 = 19.4% They are approaching the maximum recommended level of consumer debt so they are exhibiting signs of potential credit problems Ted and Karen should avoid taking on additional consumer debt POINTS: DIFFICULTY Challenging : LEARNING O PFIN.BILL.17.6-2 - LO: 6-2 BJECTIVES: NATIONAL S United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills TANDARDS: Cengage Learning Testing, Powered by Cognero Downloaded by Thanh H?ng (thanhhang.hn131099@gmail.com) Page 61 lOMoARcPSD|10289698 Chapter 6—Using Credit STATE STAN United States - AK - DISC: Capital budgeting and cost - DISC: Capital budgeting DARDS: and cost of capital United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Analyzing 156 You have a $926 balance on your credit card account The minimum payment on your account is percent of the latest balance or $20, whichever is greater What will be the minimum payment this month? ANSWER: $20 $926 ×.02 = $18.52 Since 2% of the balance is less than $20, the minimum payment is $20 POINTS: DIFFICULTY Moderate : LEARNING O PFIN.BILL.17.6-4 - LO: 6-4 BJECTIVES: NATIONAL S United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills TANDARDS: STATE STAN United States - AK - DISC: Capital budgeting and cost - DISC: Capital budgeting DARDS: and cost of capital United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Evaluating 157 The APR on a credit card account is 16% Assuming a $1,926 balance and a $40 minimum payment, how much of the minimum payment will go to interest? ANSWER: $1,926 ×.16/12 = $25.68 interest, leaving only $14.32 to pay down principal POINTS: DIFFICULTY Challenging : LEARNING O PFIN.BILL.17.6-4 - LO: 6-4 BJECTIVES: NATIONAL S United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills TANDARDS: STATE STAN United States - AK - DISC: Capital budgeting and cost - DISC: Capital budgeting DARDS: and cost of capital United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Analyzing 158 The market value of your house is $175,000 and you have a first mortgage balance of $100,000 If a lender requires a 80% loan-to-market value ratio, how large could your home equity loan be? ANSWER: ($175,000 × 0.80) − $100,000 = $40,000 POINTS: DIFFICULTY Moderate : LEARNING O PFIN.BILL.17.6-3 - LO: 6-3 BJECTIVES: Cengage Learning Testing, Powered by Cognero Downloaded by Thanh H?ng (thanhhang.hn131099@gmail.com) Page 62 lOMoARcPSD|10289698 Chapter 6—Using Credit NATIONAL S United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills TANDARDS: STATE STAN United States - AK - DISC: Capital budgeting and cost - DISC: Capital budgeting DARDS: and cost of capital United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Analyzing 159 Jacki (a single taxpayer in the 28% marginal tax bracket) owns a home in which she has $30,000 equity, and she itemizes deductions She pays $1,000 interest on credit cards and $9,000 interest on her home equity loan Calculate Jacki's tax savings from these interest payments ANSWER: $9,000 × 0.28 = $2,520 The credit card interest is not deductible POINTS: DIFFICULTY Challenging : LEARNING O PFIN.BILL.17.6-3 - LO: 6-3 BJECTIVES: NATIONAL S United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills TANDARDS: STATE STAN United States - AK - DISC: Capital budgeting and cost - DISC: Capital budgeting DARDS: and cost of capital United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Analyzing Cengage Learning Testing, Powered by Cognero Downloaded by Thanh H?ng (thanhhang.hn131099@gmail.com) Page 63