1) Which of the following is true of a traveler's check?

• a.) It is a check of a bank or other financial institution that can be purchased by paying the amount of the check plus a service fee.
• b.) It is a personal check that is issued by a bank promising that the amount on the check will be paid.
• c.) It is a prepaid check that can be purchased from a grocery or a convenience store.
• d.) It is a prepaid check that is purchased from a credit card company or bank and requires a signature before it can be cashed.

2) Patrick works as an instructional designer. He owes $15,000 in student loan debt and has missed several payments. His creditors garnish his wages to obtain the overdue amount.

Which of the following statements is true of the given scenario?

• a.) Patrick's employer legally withholds a certain amount from his paycheck and pays it to the creditor.
• b.) The creditors obtain the overdue amount by selling the collateral he has pledged.
• c.) Patrick's employer is legally bound to issue frequent notices to him about his missed loan payments.
• d.) Patrick's employer is required to pay the debt amount to the creditors.

3) Caleb is planning to take a loan to purchase a laptop.

Which of the following will influence Caleb's credit report and result in cheaper credit offers?

• a.) Caleb receives cash gift cards from his parents every month.
• b.) Caleb delays the payment of his life insurance premium.
• c.) Caleb has never applied for a credit card and does not have a credit history.
• d.) Caleb has always made payments on time on other loans availed by him.

4) Who among the following is using their credit card in a productive manner?

• a.) Fred, who carries a credit card balance from month to month at 15% interest
• b.) Blue, who uses her credit card for emergencies and repays only the minimum amount every month
• c.) Paulo, who uses his credit card during emergencies and repays the full amount every month
• d.) Kim, who pays her credit card fee on time after incurring a late payment