26) The higher your FICO score, the more risk you pose to creditors. 27) The amount of interest paid on a bill is not related to the length of the loan. 28) The longer it takes for you to pay off a bill, the less interest you pay. 29) If you are a cosigner for a loan and the debt is not repaid, that fact will appear on your 29) 26) 27) 28) credit report. MULTIPLE CHOICE. Choose the one altermative that best completes the statement or answers the question. 30) 30) A typical grace period offered by many credit card issuers is A) 30-40 days. B)0-10days. C) 20-25 days. D) 10-20 days. E) 45-60 days. 31) Perhaps the greatest disadvantage of using credit is 31) A) The float from using credit. B) The convenience offered instead of using cash. C) The increase in total purchasing power. D) The temptation to overspend. E) The increased satisfaction during present and future income periods. 32) 32) Molly purchased a $1,500 dishwasher from Best Appliances. She will make 12 equal payments over the next year to pay for it. She is using A) A line of credit. B) Open-end credit. C) Closed-end credit. D) Revolving check credit. E) None of these. 33) 33) The periodic charge for the use of credit is called A) A grace period. B) Interest. C) A line of credit. D) A revolving check credit. E) Principal. 34) A cash advance A) Requires you to pay interest every day until you repay the cash advance B) Involves a grace period on most cards C) Is less expensive than charging a purchase to your credit card D) Is a loan billed to your bank account. E) On some cards has a lower interest rate than on purchases 34) 35) The use of property or savings to secure a loan relates to 35 A) Character B) Capacity. C) Capital. D) Collateral. E) Conditions. 36) The Equal Credit Opportunity Act (ECOA) prohibits a lender from discriminating based 36) on A) Age. B) Nationality. C) Race. D) Sex E) All of these are prohibited. 37) FICO scores generally range from A) 350 to 850. B) 200 to 700. C) 500 to 1000 D) 450 to 650 E) 100 to 1000. 38) 38) When evaluating your credit application, a lender may NOT A) Inquire if you ever received credit before from that lender. B) Deny you credit if you receive public assistance. C) Request a list of the ages of your dependents. D) Ask your marital status E) Ask your date of birth. 39) Which of the following is the only online source authorized to provide you with a free 39) copy of your credit report annually? Which of the following is the only online source authorized to provide you with a free copy of your credit report annually? A) www.freecreditscore.com B) www.onlinecreditreport.com C) www.annualcreditreport.com D) www.annualcreditscore.com E) www.freecreditreport.com 40) 40) Credit files can include all of the following except A) Checks returned for insufficient funds B) Previous address G) Spouse's name, Social Security number, employer, and income. )Employer, position, and income. E) Race or nationality. 41) 41) Information about a personal bankruptey may be reported in your credit file for A) 1 year. B) Permanently C) 7 years. D) 10 years. E) 3 years. 42) Who is responsible for a loan repayment? 42) A) The credit card company B) The bank C) The store granting credit D) The cosigner and/or the borrower E) The govermment 43) If Vince charged S200 on his credit card with 18% APR and he paidhis balance in full E) $18.00 43) within the grace period, how much was he required to pay? A) $236.00 B)$182.00 200.00 D)3.00 TRUE FALSE. Write T if the statement is true and if the statement is false. 44)_ 44) The largest fixed expense associated with a new automobile is depreciation. completes the statement or answers the question. MULTIPLE CHOICE. Choose the one alternative that best 45) 45) A standard measurement used to compare the prices of packages of different sizes is A) Coupons. B) Open dating. C) Rebates. D) Unit pricing. E) Warranty 46) This type of promotion immediately reduces the amount a family spends on groceries 46) each week A) Coupons B) Open dating C) Rebates D) Unit pricing E) Warranty 47) The text identifies several phases in the research-based buying process. The correct order of the phases is A) Evaluating alternatives, preshopping activities, selection and purchase B) Postpurchase activities, evaluating altermatives, preshopping activities, Q) Preshopping activities, selection and purchase, evaluating alternatives, postpurchase D) Evaluating alternatives, selection and purchase, preshopping activities, E) Preshopping activities, evaluating alternatives, selection and purchase, postpurchase activities purchase. activities. activities. activities. selection and 48) Price analysis is part of theP phase of the research-based buying process. 48) A) evaluating alternatives B) postpurchase activities C) preshopping activities D) selection and purchase E) ordering activities 49) 49) A vehicle lease has several costs. Which of the following is the expected value at the end of the lease? A) Residual value B) Money factor C) Payment schedule D) Capitalized cost E) Trade-in value 50) Which of the following costs will increase directly with the number of miles driven? 50) A) Gasoline B) License and registration C) Interest on an auto loan D) Depreciation E) Insurance