Q 1. Which of the following will have a negative effect on a credit history?

Select one:

a. Making as many purchases as possible with cash

b. All the other answers would have a positive affect on credit history.

c. Financing a car and making payments on time

d. Never exceeding your credit limit on your credit card

Question 2

If you receive a phone call that seeks to verify or update personal information, you should

Select one:

a. never give out any personal information to someone you do not know.

b. obtain his or her name and address in case you need to contact him or her in the future.

c. ask to speak to a supervisor.

d. ask several questions of the solicitor to verify his or her authenticity.

Question 3

For which of the following items would a personal loan be a better option than a credit card for a college or university student?

Select one:

a. Tuition and residence fees

b. Tickets to sporting events

c. Car maintenance expense

d. Trips home for the holidays

Question 4

Which of the following is the most common source of financing for personal loans?

Select one:

a. Family and friends

b. Financial institutions

c. Sales finance companies

d. Credit cards

Question 5

The loan contract identifies all but which of the following?

Select one:

a. Loan repayment schedule

b. Interest rate

c. Amount of the loan

d. Credit score