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In evaluating your credit application,a lender may:


A) ask your age.
B) deny you credit if you are on public assistance.
C) require your parent's address.
D) decrease your credit because of your age.
E) discriminate against your race and nationality.

F) B) and E)
G) C) and D)

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If someone has stolen your identity,the Federal Trade Commission recommends that you contact the fraud departments of each of the three major credit bureaus.

A) True
B) False

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Mortgage loans,automobile loans,and installment loans for purchasing furniture or appliances are examples of:


A) a line of credit.
B) a credit card loan.
C) open-end credit.
D) closed-end credit.
E) convenience credit.

F) A) and B)
G) B) and D)

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Single lump-sum credit is a loan that must be repaid in total on a specified day,usually within 30 to 90 days.

A) True
B) False

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Charles Rickman is applying for a loan from the bank.The bank has determined that he has never been late making payments on past loans.Which of the 5 Cs of credit is the bank looking at?


A) Character
B) Capacity
C) Capital
D) Collateral
E) Conditions

F) C) and D)
G) All of the above

Correct Answer

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In the 5 Cs of credit,conditions refers to general economic conditions that can affect your ability to repay a loan.

A) True
B) False

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Closed-end credit is used for a specific purpose and involves a specified amount.

A) True
B) False

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Debit cards are often called:


A) bank cards.
B) ATM cards.
C) cash cards.
D) check cards.
E) All of these

F) A) and B)
G) A) and E)

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If you believe you have been refused credit due to discrimination,what are three steps you can take?

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1.Complain to the creditor.Let the credi...

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