GEB 3006: Practice Quiz #4 (FINAL) – Questions and Answers
payment history and outstanding debts - -What two factors count for 65% of your FICO
score?
-Fair Isaac Corporation - -Which company has developed the MOST commonly used credit
score to evaluate an individual's credit?
-F - -Individuals are allowed to receive a free copy of their credit report once every two
years from one of the three credit monitoring companies. (T/F)
-760 - -You should try to achieve a FICO score of at least ________ in order to receive a top
credit rating.
-a - -What is the debt to credit limit ratio for the following individual?
Visa Card Master Card
Credit Limit $10,000 $20,000
Balance Due $2,000 $19,000
Available Credit $8,000 $1,000
a. 70%, and decreasing this ratio will help the credit score
b. 30%, and increasing this ratio will help the credit score.
c. 30%, and decreasing this ratio will help the credit score
d. 70%, and increasing this ratio will help the credit score
-T - -It is possible that canceling an old credit card with no balance due could hurt your
credit score. (T/F)
-T - -If an individual gets several quotes on a new mortgage within a two week period, it
should not immediately impact their credit score. The credit score may later be impacted
by the size of the mortgage and related monthly payments.
-a - -A married couple is applying for a mortgage. One spouse has a low FICO score and
one has a high FICO score. What is their best strategy for getting the lowest interest rate
possible?
a. Apply in the name of the spouse with the highest score.
b. Apply in both spouses names since the banks will use the higher score in evaluating the
mortgage application.
-b - -Which of the following statements is true?
a. The treasury yield curve is normally downward sloping, with long term rates being
higher than short term rates.
b. The treasury yield curve is normally upward sloping, with long term rates being higher
than short term rates.
payment history and outstanding debts - -What two factors count for 65% of your FICO
score?
-Fair Isaac Corporation - -Which company has developed the MOST commonly used credit
score to evaluate an individual's credit?
-F - -Individuals are allowed to receive a free copy of their credit report once every two
years from one of the three credit monitoring companies. (T/F)
-760 - -You should try to achieve a FICO score of at least ________ in order to receive a top
credit rating.
-a - -What is the debt to credit limit ratio for the following individual?
Visa Card Master Card
Credit Limit $10,000 $20,000
Balance Due $2,000 $19,000
Available Credit $8,000 $1,000
a. 70%, and decreasing this ratio will help the credit score
b. 30%, and increasing this ratio will help the credit score.
c. 30%, and decreasing this ratio will help the credit score
d. 70%, and increasing this ratio will help the credit score
-T - -It is possible that canceling an old credit card with no balance due could hurt your
credit score. (T/F)
-T - -If an individual gets several quotes on a new mortgage within a two week period, it
should not immediately impact their credit score. The credit score may later be impacted
by the size of the mortgage and related monthly payments.
-a - -A married couple is applying for a mortgage. One spouse has a low FICO score and
one has a high FICO score. What is their best strategy for getting the lowest interest rate
possible?
a. Apply in the name of the spouse with the highest score.
b. Apply in both spouses names since the banks will use the higher score in evaluating the
mortgage application.
-b - -Which of the following statements is true?
a. The treasury yield curve is normally downward sloping, with long term rates being
higher than short term rates.
b. The treasury yield curve is normally upward sloping, with long term rates being higher
than short term rates.
