QUESTION 11

Which of the following should not be done when you find an error on your credit card statement?

	A.	Withhold payment for the disputed item(s).
	B.	Send a written notice of the error to the credit card issuer.
	C.	Pay the remaining amount owed in full to isolate a disputed item.
	D.	Send all original documentation to the credit card issuer.

QUESTION 12

With a home-equity line of credit the collateral is

	A.	the total value of the home.
	B.	the down payment from the first mortgage.
	C.	the principal of the first mortgage on the home.
	D.	the difference between what the home is worth and the balance owed on the first mortgage.

QUESTION 13

Federal law states that bills must be mailed to cardholders at least ____ days before payments are due.

	A.	10
	B.	14
	C.	21
	D.	7

QUESTION 14

If you are likely to pay your balance in full each month, select a credit card with

	A.	credit life insurance.
	B.	a grace period and no annual fee.
	C.	a low APR.
	D.	credit disability insurance.

QUESTION 15

An installment purchase agreement provides a measure of protection for

	A.	the creditor.
	B.	the borrower.
	C.	the lender.
	D.	all of these.

QUESTION 16

Which type of credit card allows the holder to make purchases almost anywhere?

	A.	Service accounts
	B.	Travel and entertainment accounts
	C.	Retail charge accounts
	D.	Bank credit card accounts

QUESTION 17

Which type of credit card is issued through banks, savings and loans, and credit unions across the country?

	A.	Travel and entertainment accounts
	B.	Thirty-day charge accounts
	C.	Retail accounts
	D.	Bank credit card accounts

QUESTION 18

A secured loan requires

	A.	either collateral or a cosigner.
	B.	a cosigner.
	C.	collateral.
	D.	an excellent credit rating.

QUESTION 19

A borrower who has failed to make a payment of principal or interest when due or meet any other requirement of a credit agreement is said to be in

	A.	arrears
	B.	foreclosure
	C.	default
	D.	rescission

QUESTION 20

Banks that issue credit cards are increasingly likely to impose default rates on certain borrowers, that is, to raise the APR for the entire debt repayment when

	A.	the credit limit is exceeded.
	B.	a payment is late.
	C.	market conditions result in a restriction of credit.
	D.	both a payment is late and the credit limit is exceeded on accounts at that bank.