Devry BUSN 380 Week 3 Quiz Latest

1. Devry BUSN 380 Week 3 Quiz Latest Just Click on Below Link To Download This Course: https://www.devrycoursehelp.com/product/devry-busn-380-week-3-quiz-latest/ Or Email us help@devrycoursehelp.com Devry BUSN 380 Week 3 Quiz Latest Devry BUSN380 Week 3 Quiz Latest 2016 Jan. 1. 1.Question : (TCO 3) Examples of _____ include automobile and installment loans for purchasing furniture or appliances. a line of credit a credit card loan open-end credit closed-end credit convenience credit Question 2. Question : (TCO 3) The maximum percentage of your net income that should be spent on credit purchases is recommended to be _____. 10% 20% 30% 40% 50% Question 3. Question : (TCO 3) One of the concerns and risks associated with cosigning is that you are not being asked to guarantee the debt.

2. it is not your legal responsibility to pay the debt. you’ll have to pay up to the full amount of the debt if the borrower does not pay. the creditor must first try to collect from the borrower. the creditor cannot garnish your wages. Question 4. Question : (TCO 3) Dividing monthly debt payments (not including house payments) by net monthly income will allow you to calculate your _____. net-worth-to-debt ratio debt-payments-to-income ratio liability status credit capacity status income-to-liability ratio Question 5. Question : (TCO 3) In determining your credit capacity, you first provide for basic necessities, such as furniture. home furnishings. mortgage or rent. automobiles. durable goods. Question 6. Question : (TCO 3) If you ask to review your file within _____ days of being notified of a denial based upon a credit report, the credit bureau cannot charge you a disclosure fee. 10 60 30 40

3. 20 Question 7. Question : (TCO 3) If a bank needs to examine the value of a specific asset when you are applying for a loan, this process refers to which aspect of the five Cs of lending? Character Capacity Collateral Capital Conditions Question 8. Question : (TCO 3) When reviewing your credit file, if you find that there is information that is incorrect, then there are legal remedies available to you. you have no legal remedies. credit bureaus are not required to change it. you can’t really do much about it. don’t worry much, because you will still get the credit. Question 9. Question : (TCO 3) All of the following reasons are reasonable situations when you would decide to use credit except borrowing for a stay in a hospital because of appendicitis. borrowing to pay for your expensive dinner and movie every week. borrowing to buy a printer for your home office now because you know it will be twice as expensive in 2 years. borrowing to purchase a car so that you can go to work full time. Question 10. Question : (TCO 3) Mary Jones has obtained a loan that must be paid over the next 12 months and she will use this money for a vacation. What type of credit is being used?

4. Installment sales credit Incremental credit Single lump sum credit Revolving credit Installment cash credit Question 11. Question : (TCO 3) By evaluating your credit options, you can do all of the following except reduce your finance charges. reconsider your decision to borrow money. discover a less expensive type of loan. find a lender that charges a lower rate. purchase goods and services without specific limitations. Question 12. Question : (TCO 3) While collateralized loans may provide lower interest rates, these loans have a disadvantage because the loan must be repaid in a short period of time. you ruin your credit rating. the loan is difficult to obtain. commercial banks do not make such loans. the assets used as collateral are tied up until the loan has been repaid. Question 13. Question : (TCO 3) Referring to trends in credit union membership, it can be observed that membership has been restricted by the Tax Reform Act of 1986. declining gradually. static.

5. growing steadily. restricted by state laws. Question 14. Question : (TCO 3) Which one of the following is a signal of a potential debt problem? Paying the maximum balance due each month Borrowing money to pay old debts Using savings to pay for major purchases Receiving notice of prompt payment from creditors Occasionally working overtime and moonlighting Question 15. Question : (TCO 3) Allison Smith starts the month with a balance of $1,100 on her credit card. On the 10th day of the month, she purchases $200 in clothes with her credit card. On the 15th day of the month, she makes a payment on her credit card of $500. The average daily balance for the month including the new purchase is $883. The average daily balance for the month excluding the new purchase is $750. Allison’s interest rate is 1.5% for the month. Allison’s bank calculates the finance charge on the credit card by using the adjusted balance method. What would Allison’s finance charges be for the month? $7.50 $9.00 $11.25 $13.25 $16.50 Question 16. Question : (TCO 3) Jerry Dean starts the month with a balance of $1,500 on his credit card. On the 10th day of the month, he purchases $200 in clothes with his credit card. On the 15th day of the month, he makes a payment on his credit card of $500. The average daily balance for the month including the new purchase is $883. The average daily balance for the month excluding the new purchase is $750. Jerry’s interest rate is 1.5% for the month. Jerry’s bank calculates the

6. finance charge on the credit card by using the previous balance method. What would Jerry’s finance charges be for the month? $7.50 $13.25 $15.00 $22.50 $18.00 Question 17. Question : (TCO 3) If Jeff rushes to purchase a home by obtaining an interest-only loan, and the reason why he wants a home is because he wants to have a house just like the one that his parents had when he was a teenager, this is an example of which of the following? . Misunderstanding or lack of communication The use of money to punish Overindulgence of children Keeping up with the Joneses The expectation of instant comfort Instructor Explanation: Chapter 7, page 234 Points Received: 1 of 1 Comments: Question 18. Question : (TCO 3) Steve has three children and has purchased each of them his or her own TV that is placed in his or her respective room. Which reason for indebtedness is this an example of? Misunderstanding or lack of communication Overindulgence of children The expectation of instant comfort

7. Keeping up with the Joneses The use of money to punish Question 19. Question : (TCO 3) _____ families rely heaviest on student loans to finance college. Low-income Middle-income High-income Large Small Question 20. Question : (TCO 3) If Tracy Sears borrows $1,250 for 1 year with an APR of 9% with no service fees, what is her total cost of credit? $125 $112.50 $7.50 $9.38 $0 Download File Now