1. A consumer's credit report does not include the consumer's

a. past or current addresses.

b. creditors or the amounts owed to them.

c. birth date or Social Security number.

d. race, age, or gender.

2. Credit bureaus first emerged in the United States in the late 1800s

a. as a for-profit company.

b. to help lenders lessen the risk of extending credit to consumers who did not pay their bills.

c. because of consumers who could not get loans.

d. as a government agency.

3. Credit bureaus

a. began in the 1920s when computers made data collection and sharing faster and easier.

b. make a profit by selling information to lenders and by selling products directly to consumers.

c. must have written permission from consumers to collect and share their credit information.

d. issue credit reports because the Consumer Financial Protection Bureau requires them to do so.

4. Negativeinformation included in credit reports

a. is reported for twenty years.

b. is recorded for life.

c. is removed if one sues successfully.

d. can be removed after 7 years.

5. Most of the information collected by the Big Three credit bureaus comes from

a. auto lenders and retail credit cards.

b. mortgage lenders and retail credit cards.

c. general credit cards and other sources.

d. mortgage lenders and auto lenders.

6. Credit scores are

a. based on income of a consumer.

b. calculated each month when lenders provide new information.

c. always the same with each of the Big Three credit bureaus.

d. designed to indicate the risk that a person will repay a loan or credit obligation on time.

7. FICO scores indicate the financial responsibility and behavior of consumers. It is important for lenders to review a consumer's FICO credit score because

a. consumers with lower credit scores are more likely to not pay on time and possibly make no payments at all.

b. consumers with higher credit scores are more likely to miss payments.

c. higher credit scores usually result in lower risk to the borrower.

d. it is less risky to give credit to consumers who manage to keep a low credit score.

8. Which statement is incorrect?

a. Credit bureaus are supervised by the Consumer Financial Protection Bureau.

b. Credit bureaus have the ability to use computers and the internet to collect and share credit reports.

c. Credit bureaus always charge a fee to issue a credit report.

d. Since 1971, there have been laws to regulate credit bureaus.

9. Credit bureaus

a. are businesses that have non-profit status because they provide a service.

b. sometimes work dependently and share information with each other.

c. can be beneficial to consumers who are financially responsible and need credit to make large purchases.

d. keep records indefinitely and sell credit reports to lenders.

10. Lenders provide information to

a. credit bureaus because they are required to do so by the government.

b. all three of the major credit bureaus on the same day once a week.

c. the www.annualcreditreport.com website once a month.

d. Credit bureaus because it is in their best interest to have complete and accurate records