PERSONAL FINANCE (COLLEGE EDITION) EXAM 2 (FINAL EXAM) MATERIAL (CH. 8, 9, 10 11, 12 UPDATED ACTUAL QUESTIONS AND CORRECT ANSWERS

PERSONAL FINANCE (COLLEGE EDITION) EXAM 2
(FINAL EXAM) MATERIAL (CH. 8, 9, 10 11, 12 UPDATED
ACTUAL QUESTIONS AND CORRECT ANSWERS

Question:
1. Pro rata
Answer:
Gives creditors a "fair share"

Question:
2. FICO score
Answer:
"I love debt" score

Question:
3. Identity theft
Answer:
using another person's information to obtain goods or services

Question:
4. credit bureau
Answer:
TransUnion

Question:
5. Garnishment
Answer:
Court order allowing a lender to take money directly from the debtor's paycheck

Question:
6. collectors
Answer:
Trained salespeople or telemarketers

Question:
7. Four Walls
Answer:
food, shelter, clothing, transportation

Question:
8. T/F: you should always pay the collectors first
Answer:
False

, Question:
9. T/F: The best way to deal with debt is with a plan
Answer:
True

Question:
10. T/F: The Federal Fair Debt Collection Practices Act allows creditors to call between 7:00 am and 10:00
pm
Answer:
False

Question:
11. T/F: If you are a victim of identity theft, you are only responsible for paying back half of the debt.
Answer:
False

Question:
12. T/F: you should check your credit report every year
Answer:
True

Question:
13. Passed in 1977 to protect you from unfair collectors:
a. FDIC
b. FHA
c. FFDCPA
d. FFCRA
Answer:
c. FFDCPA (Federal Fair Debt Collection Practices Act)

Question:
14. Which of the following is one of the Four Walls?
a. cable television
b. rent payment
c. cell phone bill
d. designer jeans
Answer:
b. rent payment

Question:
15. It is a good idea to check your credit report:
a. You don't need to if you've never used debt
b. every year
c. every three years
d. every five years
Answer:
b. every year