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Assignment #8
Obtaining and Protecting Your Credit
VOCABULARY CHECK
Fill In the Blank: Fill in the blank with the correct Highlighted answer.
1. Sebastian wanted to apply for (??) to get his new guitar, but the (??) rate was high.
2. Brandy had trouble getting credit because she had never applied for credit and she had no (??).
3. Bryna was a victim of (??) when someone opened up a credit account in her name.
4. Brandy’s father explained that the loan on her car was a type (??) of and that her payments
would be due every month on the same date until her loan was paid off.
5. Bryce was trying to purchase music online when he was redirected to a site that appeared to be
official but that he soon discovered was not. He was about to be a victim of (??).
6. Luther knew that creditors could not deny him credit based on his ethnicity or race because of
the (??).
7. Credit cards are an example of (??).
8. Ebony saw the ad for “30 days, same as cash” and thought this option would work well for
her. This type of credit in which monthly or weekly payments may not be required is known as
(??).
9. Dustin requested his (??) from TransUnion, which is a (??).
10. Kenzie knows he has a good (??) because he saw his credit report. This score is based on a
model created by (??).
11. Claude worried that someone was (??) when he was getting money at the ATM.
12. Dwight’s mother was a victim of (??) when a hotel employee copied her credit card number
during her last business trip.
13. Kaitlin received an email that appeared to be from her bank requesting that she verify
account information. This type of fraud is called (??).
14. Cody had $500 showing as his (??) left on the loan.
15. Jonathan asked that his (??) be increased on his credit card to $500.
16. Someone called Cecily to get her personal ID for her bank account. She may have been a
victim of (??).
17. The (??) to whom Elizabeth owes money for her credit purchase is Macy’s.
18. The (??) makes sure that your personal credit information only becomes available to firms
legally allowed to access your information.
Principal; phishing; skimming; shoulder surfing; Fair Isaac Corporation; credit score
credit bureau; credit report; noninstallment credit; revolving open-end credit; Equal
Credit Opportunity Act; pharming; installment credit; identity theft; credit history
interest; credit; credit limit; creditor; Fair Credit Reporting Act; PreTexting
CHAPTER 9
Obtaining and Protecting Your Credit
CHECK YOUR KNOWLEDGE
Multiple Choice Questions Highlight the correct answer for each of the following.
1. Which of the following is not one of the three main categories of credit?
a. installment credit
b. revolving open-end credit
c. layaway credit
d. noninstallment credit
2. Noninstallment credit is typically __________ in duration.
a. 30 days or less
b. more than six months
c. one to four years
d. two days
3. Installment loans typically require the borrower to make payments every __________.
a. day
b. week
c. month
d. year
4. Installment loans are usually used to buy all of the following except __________.
a. furniture
b. cars
c. boats
d. gas
5. Credit is advantageous because __________.
a. it helps us make large purchases sooner than we could if using cash
b. it is costly
c. it makes financial matters more complex
d. none of the above
6. Which of the following statements is not an example of the disadvantages of credit?
a. Credit makes it easy to borrow too much money.
b. Credit makes unwise purchases too easy.
c. Using credit properly helps establish good credit history.
d. Some credit carries extremely high interest rates.
7. Which of the following is not one of the three primary credit bureaus?
a. Equifax
b. Federal Credit Bureau
c. TransUnion
d. Experian
8. Credit reports contain all of the following except __________.
a. records of late payment
b. history of default
c. medical records
d. bankruptcy history
9. All of the following are common identity theft tactics except __________.
a. shoulder surfing
b. pretexting
c. phishing
d. sidewalk patrolling
10. Pretexting that occurs online is known as __________.
a. skimming
b. phishing
c. shoulder surfing
d. sidewalk patrolling