A method not recommended for getting out of excessive credit card debt is to

	A.	negotiate with your creditors to lower your payments and interest rates.
	B.	not open new credit accounts or accept any new credit offers.
	C.	pay the minimum amount due on your high interest-rate cards, and pay as much as possible on the lowest interest-rate cards.
	D.	consider transferring existing balances on high-interest rate accounts to an account with a lower interest rate.

QUESTION 2

An unsecured loan requires

	A.	a cosigner and collateral.
	B.	a cosigner and a lien.
	C.	collateral and a lien.
	D.	none of these.

QUESTION 3

Revenues for bank credit cards are generated from

	A.	all of these.
	B.	fees paid by participating merchants.
	C.	finance charges.
	D.	annual membership fees.

QUESTION 4

The outstanding balance owed on a debt is the

	A.	APR.
	B.	finance charge.
	C.	principal.
	D.	equity.

QUESTION 5

Credit cards issued by local and national merchants and other major non-bank companies are examples of

	A.	service credit charge accounts.
	B.	travel and entertainment cards.
	C.	retail credit accounts.
	D.	affinity credit cards.

QUESTION 6

The sum of outstanding balances owed each day during the billing period divided by the number of days in the period is the

	A.	average daily balance.
	B.	periodic rate.
	C.	APR.
	D.	annual fee.

QUESTION 7

Janice Dawson, an active environmentalist, has a MasterCard with the Sierra Club logo on it. What type of card is this?

	A.	Affinity card
	B.	Gold card
	C.	Premium card
	D.	Both a premium card and a gold card

QUESTION 8

The method of paying off a loan through which a portion of each payment goes to the principal and a portion to interest with the interest portion declining and the principal portion increasing each month as the debt is paid down is called

	A.	amortization
	B.	acceleration
	C.	garnishment.
	D.	leasing

QUESTION 9

Kay Halden had three credit cards in her billfold when her wallet was stolen. She reported the cards missing as soon as she discovered the loss (one day), but the following charges were incurred before she reported the stolen cards:

Sears	$585
Visa	$35
Foleys	$40

How much is Kay's maximum legal liability for the fraudulent charges on these cards?

	A.	$660
	B.	$125
	C.	$0
	D.	$585

QUESTION 10

The cost of credit on a yearly basis stated as a percentage rate is its

	A.	interest rate.
	B.	interest charge.
	C.	finance charge.
	D.	APR.