Question 1

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

Select one:

a. Financing a car and making payments on time

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

c. Never exceeding your credit limit on your credit card

d. Making as many purchases as possible with cash

Question 2

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

Select one:

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

b. ask to speak to a supervisor.

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

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. Trips home for the holidays

c. Tickets to sporting events

d. Car maintenance expense

Question 4

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

Select one:

a. Sales finance companies

b. Financial institutions

c. Credit cards

d. Family and friends

Question 5

The loan contract identifies all but which of the following?

Select one:

a. Loan repayment schedule

b. Amount of the loan

c. Credit score

d. Interest rate