The Information in Your Credit Report Is Primarily Used by the Credit

question 45

Multiple Choice

The information in your credit report is primarily used by the credit bureau to compute your:

• A) debt to equity ratio.
• B) FICO credit score.
• C) debt payment to income ratio.
• D) liquidity ratio.
• E) long term capitalization ratio.

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Definitions:

FICA Taxes

Taxes mandated by the Federal Insurance Contributions Act, which fund Social Security and Medicare, collected from both employers and employees.

FUTA Taxes

Federal Unemployment Tax Act taxes, which are payroll taxes paid by employers to fund the government’s unemployment benefits.

SUTA Taxes

State Unemployment Tax Act taxes, which are state unemployment insurance contributions that employers must pay to provide unemployment benefits to workers who have been laid off.

Gross Pay

The total amount of salary or wages earned by an employee before any deductions are made.