wise financial literacy practice test instructions updated 2023/24

What is meant by an uncollateralized loan? B: A personal loan without assets to cover the loan amount. To qualify for a Federal Housing Administration (FHA) loan, a person must generally C: fulfill income guidelines. When a person brings an item to a pawnshop to obtain cash, the transaction is considered A: a collateralized loan. When a person declares bankruptcy that fact will appear on the person?s credit report B: for a 10 year period. A person has three credit cards with very large outstanding balances and is unable to make payments on any of them. Which action should the person take? C: Notify the credit card companies in order to negotiate a new payment plan. Which of the following is considered to be open-end credit? C: Department store charge cards. Predatory lending practices generally include: A: Very high interest rates and fees An advantage of declaring bankruptcy is: A: Most debts to creditors are eliminated What is a credit score? A: A number used to determine how much credit to extend to a person. The Truth in Lending Act of 1968 requires creditors to: A: State the monthly finance charge and the Annual Percentage Rate on the monthly statement When a person brings an item to a pawnshop to obtain cash, the transaction is considered A: a collateralized loan. To qualify for a Federal Housing Administration (FHA) loan, a person must generally C: fulfill income guidelines. What is meant by an uncollateralized loan? B: A personal loan without assets to cover the loan amount. Which of the following is considered to be open-end credit? C: Department store charge cards. When a person declares bankruptcy that fact will appear on the person?s credit report B: for a 10 year period. A person has three credit cards with very large outstanding balances and is unable to make payments on any of them. Which action should the person take? C: Notify the credit card companies in order to negotiate a new payment plan. An advantage of declaring bankruptcy is: A: Most debts to creditors are eliminated Dawn graduated from high school and wants to get a credit card. How can Dawn establish credit-worthiness? B: Opening a checking account, making regular deposits, and avoiding penalties for insufficient funds A credit card finance charge is: One example of a long-term retirement goal is to One example of a long-term retirement goal is to C: deposit at least $100,000 in a retirement