U.E.T Taxila

COURSE TITLE : FREE 101

1)Which of the following is the only online source authorized to provide a free credit report each year at your request?

2. Credit files can include all except:
3. Which is NOT true about the Fair Credit Reporting Act?
4. Credit reports can be obtained for all except:
5. Information about a personal bankruptcy may be reported in your credit file for
6. If you are denied credit,

7. The finance charge for credit includes all except:
8. The APR is the percentage cost of credit on a(n)                                                                      basis.
9. If a loan is being paid in installments instead of all at the end of the loan period, the actual rate of interest will be
10. Sam is comparing the costs of two loans. One is due in one year and the other is due in four years. Both have the same stated rate of interest. Which of the following is true?
11. The minimum monthly payment on a credit card is
12. If you double the monthly payment for a credit card, the loan will be paid off in
13. Which of the following acts sets procedures for promptly correcting billing mistakes, refusing to make credit card or revolving credit payments on defective goods, and promptly crediting accounts?
14. If you think a bill is wrong or you want more information about the bill, then you and your creditor should follow all of the steps below except
15. Which of the following is often the first sign of a stolen identity?

16. If you think your identity has been stolen, which of the following actions does the Federal Trade Commission recommend you take immediately?
17. Which of the following items should be shredded to protect yourself from identity theft?

18. Carrie thought she misplaced her checkbook for a few days. When she found it, she noticed that two checks, her cash and her debit card were missing. She immediately thought about the increase in identity theft in her area and decided to take some action. She should take all of the following steps except
19. Who is responsible for a loan repayment?
20. All of the following are consumer credit protection laws except
21. If you want to file a complaint against a bank, you:
22. According to the Fair Credit Billing Act, if a creditor fails to follow the rules that apply to correcting any billing errors, you have the right to sue for
23. All of the following are signs of financial trouble except:

24. The Consumer Credit Counseling Service
25. Personal bankruptcy can be filed under which section(s) of the U.S. bankruptcy code?
26. Under Chapter 7 o f the U. S. Bankruptcy code,
27. Following the signing of The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, debtors seeking to erase all debts will have to wait                                                          years from their last bankruptcy before they can file again.
28. Rachel Efron went to the ATM to draw $200 cash with her debit card. She inadvertently pulled out her credit card instead, not realizing the expenses for cash advances. If her credit card

company charges a cash advance fee of 3 percent and interest at 24 percent APR, what are the total fees she will pay for her mistake?

29. Timothy Calibe went out to eat with his girlfriend at a fancy restaurant. When he tried to pay the bill with his Mastercard credit card, he was told that the restaurant only accepted cash or American Express. His waiter suggested that he use the ATM across the street to withdraw cash using his credit card. Tim did as suggested and didn't pay attention to any fees until he received his credit card statement one month later.

He was shocked to see the total fees (3 percent cash advance) and his APR was increased to 21 percent. Given the cost of the meal ($150) plus the associated fees, how much did his meal cost him?

30. Acme Home Lending offers home equity loans up to 75 percent of the home value for its customers. If Sally Johnson has a home valued at $200,000 and a current mortgage of

$65,000, how much can she borrow in a home equity loan from Acme?

31. If Vinay charged $300 on his credit card with 18 percent APR and he paid his balance in full within the grace period, how much was he required to pay?
32. Rachel Efron has net monthly income of $2,400. She has a monthly auto loan payment of

$250, a student loan payment of $120, and credit card minimum payment of $40. What is her debt-payments-to-income ratio?

33. Timothy Calibe has net monthly income of $4,200. He has a monthly auto loan payment of

$350, a student loan payment of $120, mortgage payment of $1,100 and credit card minimum payment of $40. What is his debt-payments-to-income ratio?

34. Hannah has liabilities totaling $25,000 (excluding her mortgage of $75,000). Her net worth is $50,000. What is her debt-to-equity ratio?

35. Peter borrowed $250. He paid $25 interest and a service charge of $2.50. What is his finance charge?

36. Paul borrowed $250 to be repaid in one year. He paid 10 percent interest and a service charge of $2.50. What is his finance charge?

37. Suppose you borrow $200 for one year and pay a finance charge of $20. If you repay this loan all at once after one year, what is your average balance?

38. Tanya received a $1,000 loan from the bank for a vacation. The bank is using the simple interest formula for this one-year, 7 percent loan. What is her total interest?

39. Fredrick received a $2,000 loan from the bank for some new appliances. The bank is using the simple interest formula for this two-year, 7 percent loan. What is his total interest?