Ramsey Ch 4 Post-Test Exam

Ramsey Ch 4 Post-Test Exam Questions with Solutions 1) Banks and lenders use credit scores to determine... - -the likelihood that someone is able to repay debt

• 2) A credit score is an indicator of how well someone pays off their debt,

not how well they handle money (T/F) - -true

• 3) Predatory lenders get their negative reputation from... - -charging high

fees for loans and targeting desperate people

• 4) your greatest tool to building wealth is... - -your income
• 5) what is the best way to avoid falling into debt? - -only buy things that

you can purchase with cash

• 6) Credit card companies charge stores a 2-3% fee for every purchase

made with credit cards. This is called a(n)... - -merchant fee

• 7) Credit card companies make the most profit from... - -Charging interest

to customers who only pay part of their monthly debt

• 8) when a homeowner takes our a home equity line of credit (HELOC), that

loan can only be used for home repairs and renovations (T/F). - -false

• 9) When looking over your credit report, it's important to make sure... - -

no lines of credit have been opened under your name without your knowledge

• 10) Car lease agreements come with a stipulation that you may pay a

penalty if you... - -go over the pre-established mileage cap

• 11) Credit isn't a wealth-building tool, it's a business that makes money

for... - -credit card companies, banks, and lenders

• 12) There are certain things, like renting a car or booking a hotel room,

that you cannot do without having a credit card (T/F) - -false

• 13) Leasing a car is a method of financing where someone... - -makes

monthly payments on but does not own the vehicle

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