#1
When did consumer credit first emerge in history?
18th century
19th century
20th century
21st century
#2
Which of the following is NOT a characteristic of credit unions?
Owned and operated by their members
Non-profit organizations
Offering high-interest rates on loans
Providing financial services to members
#3
What is the primary function of a credit reporting agency?
To provide loans to consumers
To regulate the banking industry
To collect and maintain credit information on individuals
To enforce consumer protection laws
#4
Which of the following is NOT a factor typically considered in determining a person's credit score?
Payment history
Income level
Length of credit history
Types of credit used
#5
What is the main function of a credit union?
To provide insurance for credit card transactions
To issue loans to corporations
To offer financial services to its members
To regulate interest rates on mortgages
#6
Which financial institution is considered the precursor to modern banks?
Credit unions
Pawnshops
Investment banks
Savings and loan associations
#7
Who introduced the concept of revolving credit in the United States?
American Express
Bank of America
Visa
Mastercard
#8
What was the purpose of the Servicemen's Readjustment Act of 1944, commonly known as the GI Bill?
To provide loans to veterans for purchasing homes and starting businesses
To regulate the banking sector during wartime
To establish a national system of credit unions for military personnel
To provide educational and training benefits to veterans returning from World War II
#9
Who is often credited with the invention of the modern credit card?
Frank McNamara
David Rockefeller
Walter Wriston
George Bailey
#10
Which legislation established the Consumer Financial Protection Bureau (CFPB) in the United States?
Sarbanes-Oxley Act
Dodd-Frank Wall Street Reform and Consumer Protection Act
Gramm-Leach-Bliley Act
Fair Credit Reporting Act
#11
Which act established the Federal Deposit Insurance Corporation (FDIC) in the United States?
Bank Holding Company Act
Glass-Steagall Act
Dodd-Frank Wall Street Reform and Consumer Protection Act
Federal Reserve Act
#12
What is the significance of the Gramm-Leach-Bliley Act (GLBA) in the history of consumer credit?
It repealed parts of the Glass-Steagall Act, allowing banks to engage in a broader range of activities
It established credit reporting agencies in the United States
It created the Consumer Financial Protection Bureau (CFPB)
It regulated the use of credit cards for online transactions
#13
What is securitization in the context of consumer credit?
The process of converting loans into securities that can be traded on financial markets
The practice of securing a loan with collateral
The act of obtaining a credit score for loan approval
The process of setting interest rates for loans
#14
What role did the Federal Housing Administration (FHA) play in the evolution of consumer credit?
It provided insurance on mortgage loans, making homeownership more accessible
It regulated interest rates on credit cards
It established the first credit bureau in the United States
It introduced the concept of credit scoring
#15
What is the significance of the Dodd-Frank Wall Street Reform and Consumer Protection Act?
It deregulated the banking sector to stimulate economic growth
It established new regulations to prevent another financial crisis
It dissolved the Federal Reserve System
It abolished credit reporting agencies