True/False
Indicate whether the sentence or statement is true or
false.
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| 1. | There are five major credit
bureaus that keep track of your credit information in this country.
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| 2. | When making a purchase using
Installment Sales Credit, you normally make a down payment for the item or service being
purchased.
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| 3. | It is recommended that you get
a copy of your credit report from the different credit bureaus once a year so you can check your
credit record and make sure no one is using your personal information to make charges and thus hurt
your credit rating.
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Multiple
Choice
Identify the letter of the choice that best completes the statement or answers the
question.
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| 4. | When is installment sales
credit typically used? a. | when purchasing
utilities | b. | when purchasing electricity only | c. | when purchasing furniture & household appliances | d. | when purchasing groceries | | |
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| 5. | Which is a type of loan
discussed in class? a. | single-payment
loan | c. | monthly-payment loan | b. | long-term
loan | d. | sales loan | | | | |
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| 6. | Which law/act requires prompt
correction of billing mistakes when they are brought to the attention of a business in a prescribed
manner? a. | Truth in Lending Law | c. | Fair Credit Reporting
Act | b. | Equal Credit Opportunity Act | d. | Fair Credit Billing
Act | | | | |
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| 7. | A credit bureau does
what? a. | keeps track of your credit record for you | b. | keeps track of your credit record and provides that information to your
employer | c. | keeps track of your credit record and sells that information to credit
gathers | d. | all of these are correct | | |
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| 8. | What law/act requires that you
be told the cost of a credit purchase in writing before you sign a credit agreement? a. | Equal Credit Opportunity Act | c. | Fair Credit Reporting
Act | b. | Truth in Lending Law | d. | Fair Credit Billing
Act | | | | |
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| 9. | A report that shows the debts
you owe, how often you use credit, and whether you pay your debts on time is known as
a..... a. | finance report | b. | bank
record | c. | credit report | d. | credit bureau | | | | | | | | |
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Completion
Complete each sentence or statement.
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| | 10. | One type of loan is one in
which you agree to make monthly payments in specified amounts over a period of time, with each
payment known as a ______________. (spell your one-word answer correctly and do not
capitalize)
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