Chapter 8: Credit Management and Implications Quiz

1 point(s)

What does APR stand for in the context of credit costs?

Annual Payment Rate

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Annual Percentage Rate

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Annual Penalty Rate

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Annual Principal Rate

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1 point(s)

Which type of loan typically requires collateral?

Secured loan

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Unsecured loan

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Payday loan

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Student loan

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1 point(s)

What should a consumer do first if they identify an incorrect billing statement?

Contact the Better Business Bureau

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Contact the billing company

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File a complaint with the Federal Trade Commission

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Ignore the error

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1 point(s)

Secured credit cards require a cash deposit that serves as collateral.

True

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False

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1 point(s)

The Truth in Lending Act (TILA) requires lenders to provide clear disclosure of credit terms.

True

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False

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3 point(s)

Definition

Sort elements

Annual cost of borrowing including interest and fees
Time during which no interest is charged on a balance if paid in full
Charges incurred for making a payment after the due date

APR	Correct Incorrect Correct answer

Grace Period

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Late Fees

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3 point(s)

Definition

Sort elements

Requires collateral, lower interest rates
No collateral required, higher interest rates
Short-term, high-interest loan with quick repayment

Secured Loan

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Unsecured Loan

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Payday Loan

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1 point(s)

Arrange these steps in resolving a billing statement error in the correct order: Review the statement, Contact the billing company, Escalate to consumer-advocacy agencies, Keep a record of all communications. (put the first step at the top)

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1 point(s)

Rank these types of loans from lowest to highest typical interest rates:

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1 point(s)

How does regularly checking your credit report and disputing inaccuracies contribute to maintaining a healthy credit score?

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Chapter 8: Credit Management and Implications Quiz