Question 1

The number of credit union members has been:

Accepted Answer

A) growing steadily. 
B) declining gradually. 
C) static. 
D) restricted by the Tax Reform Act of 1986. 
E) restricted by state laws. 
A) growing steadily. 
B) declining gradually. 
C) static. 
D) restricted by the Tax Reform Act of 1986. 
E) restricted by state laws.

Question 2

You have two choices in declaring personal bankruptcy: Chapter 7 and Chapter 13 bankruptcy.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is not true of CCCS counseling?

Accepted Answer

A) It is usually free. 
B) It is quite costly. 
C) It provides education regarding the pitfalls of unwise credit buying. 
D) It suggests techniques for family budgeting. 
E) It helps families manage their money. 
A) It is usually free. 
B) It is quite costly. 
C) It provides education regarding the pitfalls of unwise credit buying. 
D) It suggests techniques for family budgeting. 
E) It helps families manage their money.

Question 4

In addition to the Consumer Credit Counseling Service (CCCS),alternative counseling services (universities,credit unions,military bases,and state and federal housing authorities)sometimes provide nonprofit counseling services.

Accepted Answer

A) True 
 B)False

Question 5

The Consumer Credit Counseling Service (CCCS)counseling is usually free.

Accepted Answer

A) True 
 B)False

Question 6

Which method of payment is almost always cheaper than using credit?

Accepted Answer

A) Bank credit card 
B) Check written on a home equity line of credit 
C) Cash 
D) Store credit card 
E) Cash advance on a Visa credit card 
A) Bank credit card 
B) Check written on a home equity line of credit 
C) Cash 
D) Store credit card 
E) Cash advance on a Visa credit card

Question 7

Which one of the following is not a danger signal of potential debt problems?

Accepted Answer

A) Paying only the minimum balance due each month 
B) Receiving second or third payment notices from creditors 
C) Using savings to pay routine bills 
D) Repaying loans faster than required 
E) Depending on overtime and moonlighting to meet everyday expenses 
A) Paying only the minimum balance due each month 
B) Receiving second or third payment notices from creditors 
C) Using savings to pay routine bills 
D) Repaying loans faster than required 
E) Depending on overtime and moonlighting to meet everyday expenses

Question 8

If you want to minimize your borrowing costs,you may need to accept conditions that reduce the risk for your lender.

Accepted Answer

A) True 
 B)False

Question 9

Shelly Sanders gets a loan for $3,000 and repays the loan in 12 monthly payments of $258 per month.Under the APR formula,what is the amount of interest included in her first payment?

Accepted Answer

A) $16.00 
B) $14.77 
C) $8.96 
D) $4.87 
E) $1.23 
A) $16.00 
B) $14.77 
C) $8.96 
D) $4.87 
E) $1.23

Question 10

Henry Garrison starts the month with a balance on his credit card of $800.The average daily balance for the month including purchase is $683.The average daily balance for the month excluding new purchase is $550.The bank charges 1.5 percent per month and uses the average daily balance including new purchases method.What would Henry's finance charges be for the month?

Accepted Answer

A) $8.25 
B) $10.25 
C) $12.00 
D) $15.00 
E) $18.00 
A) $8.25 
B) $10.25 
C) $12.00 
D) $15.00 
E) $18.00

Question 11

You have the right to file your own bankruptcy case and to represent yourself at all court hearings.

Accepted Answer

A) True 
 B)False

Question 12

If you pledge property or other assets as collateral,you will probably pay a higher interest rate on your loan than you would without collateral.

Accepted Answer

A) True 
 B)False

Question 13

Jerry Allison starts the month with a balance on his credit card of $800.On the 10th day of the month,he purchases $200 in clothes with his credit card.On the 15th day of the month he makes a payment on his credit card of $300.The bank charges 1.5 percent interest per month using the previous balance method.What would Jerry's finance charges be for the month?

Accepted Answer

A) $4.50 
B) $7.50 
C) $11.25 
D) $12.00 
E) $18.00 
A) $4.50 
B) $7.50 
C) $11.25 
D) $12.00 
E) $18.00

Question 14

Sandra Jennings gets a loan from General Motors Acceptance Corporation.Which type of lending institution is this?

Accepted Answer

A) Credit union 
B) Check casher 
C) Finance company 
D) Department store 
E) Commercial bank 
A) Credit union 
B) Check casher 
C) Finance company 
D) Department store 
E) Commercial bank

Question 15

Patricia Newton is going to buy a new car,and she needs to apply for a loan to cover the purchase.She knows she can get a loan for up to 6 years,but she would prefer a shorter-term loan.She selects a 4-year loan.Patricia is lowering her lender's risk by:

Accepted Answer

A) sharing the interest rate risk. 
B) pledging collateral. 
C) paying a larger cash deposit. 
D) repaying the loan faster. 
E) sharing inflation risk with her lender. 
A) sharing the interest rate risk. 
B) pledging collateral. 
C) paying a larger cash deposit. 
D) repaying the loan faster. 
E) sharing inflation risk with her lender.

Question 16

What are the various methods used to calculate interest?

Accepted Answer

The various methods used to calculate in

Question 17

What are two key concepts to remember if you are thinking of borrowing money or opening a credit account? Describe each concept.

Accepted Answer

Answers will vary.Two key concepts are t

Question 18

The CCCS is also concerned with:

Accepted Answer

A) lending money to destitute people. 
B) giving debtors food and shelter. 
C) helping destitute debtors to relocate into less expensive areas. 
D) preventing and solving the problems related to overindebtedness. 
E) paying off mortgage loans. 
A) lending money to destitute people. 
B) giving debtors food and shelter. 
C) helping destitute debtors to relocate into less expensive areas. 
D) preventing and solving the problems related to overindebtedness. 
E) paying off mortgage loans.

Question 19

Which of the following is true if your credit company invites you to skip a monthly payment without a penalty?

Accepted Answer

A) They are doing you a favor. 
B) You will not owe finance charges on your unpaid balance. 
C) Interest will not be adding up on any purchases you make after the due date you skipped. 
D) It would be a mistake to take this offer. 
E) You should not ignore this offer. 
A) They are doing you a favor. 
B) You will not owe finance charges on your unpaid balance. 
C) Interest will not be adding up on any purchases you make after the due date you skipped. 
D) It would be a mistake to take this offer. 
E) You should not ignore this offer.

Question 20

Which type of debt would not be forgiven in a straight bankruptcy?

Accepted Answer

A) Credit card debt 
B) Medical bills 
C) Personal loans 
D) Educational loans 
E) Utility bills 
A) Credit card debt 
B) Medical bills 
C) Personal loans 
D) Educational loans 
E) Utility bills

The number of credit union members has been:

You have two choices in declaring personal bankruptcy: Chapter 7 and Chapter 13 bankruptcy.

Which of the following is not true of CCCS counseling?

In addition to the Consumer Credit Counseling Service (CCCS),alternative counseling services (universities,credit unions,military bases,and state and federal housing authorities)sometimes provide nonprofit counseling services.

The Consumer Credit Counseling Service (CCCS)counseling is usually free.

Which method of payment is almost always cheaper than using credit?

Which one of the following is not a danger signal of potential debt problems?

If you want to minimize your borrowing costs,you may need to accept conditions that reduce the risk for your lender.

Shelly Sanders gets a loan for $3,000 and repays the loan in 12 monthly payments of $258 per month.Under the APR formula,what is the amount of interest included in her first payment?

You have the right to file your own bankruptcy case and to represent yourself at all court hearings.

If you pledge property or other assets as collateral,you will probably pay a higher interest rate on your loan than you would without collateral.

Sandra Jennings gets a loan from General Motors Acceptance Corporation.Which type of lending institution is this?

Patricia Newton is going to buy a new car,and she needs to apply for a loan to cover the purchase.She knows she can get a loan for up to 6 years,but she would prefer a shorter-term loan.She selects a 4-year loan.Patricia is lowering her lender's risk by:

What are the various methods used to calculate interest?

What are two key concepts to remember if you are thinking of borrowing money or opening a credit account? Describe each concept.

The CCCS is also concerned with:

Which of the following is true if your credit company invites you to skip a monthly payment without a penalty?

Which type of debt would not be forgiven in a straight bankruptcy?

Personal Finance Basics and the Time Value of Money

Financial Aspects of Career Planning

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

Financial Services: Savings Plans and Payment Accounts

Introduction to Consumer Credit

Consumer Purchasing Strategies and Legal Protection

The Housing Decision: Factors and Finances

Property and Motor Vehicle Insurance

Health,disability,and Long-Term Care Insurance

Life Insurance

Investing Fundamentals

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Investing in Real Estate and Other Investment Alternatives

Starting Early: Retirement Planning

Estate Planning

Filters

Exam 7: Choosing a Source of Credit: the Costs of Credit Alternatives

The number of credit union members has been:

You have two choices in declaring personal bankruptcy: Chapter 7 and Chapter 13 bankruptcy.

Which of the following is not true of CCCS counseling?

In addition to the Consumer Credit Counseling Service (CCCS),alternative counseling services (universities,credit unions,military bases,and state and federal housing authorities)sometimes provide nonprofit counseling services.

The Consumer Credit Counseling Service (CCCS)counseling is usually free.

Which method of payment is almost always cheaper than using credit?

Which one of the following is not a danger signal of potential debt problems?

If you want to minimize your borrowing costs,you may need to accept conditions that reduce the risk for your lender.

Shelly Sanders gets a loan for $3,000 and repays the loan in 12 monthly payments of $258 per month.Under the APR formula,what is the amount of interest included in her first payment?

You have the right to file your own bankruptcy case and to represent yourself at all court hearings.

If you pledge property or other assets as collateral,you will probably pay a higher interest rate on your loan than you would without collateral.

Sandra Jennings gets a loan from General Motors Acceptance Corporation.Which type of lending institution is this?

Patricia Newton is going to buy a new car,and she needs to apply for a loan to cover the purchase.She knows she can get a loan for up to 6 years,but she would prefer a shorter-term loan.She selects a 4-year loan.Patricia is lowering her lender's risk by:

What are the various methods used to calculate interest?

What are two key concepts to remember if you are thinking of borrowing money or opening a credit account? Describe each concept.

The CCCS is also concerned with:

Which of the following is true if your credit company invites you to skip a monthly payment without a penalty?

Which type of debt would not be forgiven in a straight bankruptcy?

Personal Finance Basics and the Time Value of Money

Financial Aspects of Career Planning

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

Financial Services: Savings Plans and Payment Accounts

Introduction to Consumer Credit

Consumer Purchasing Strategies and Legal Protection

The Housing Decision: Factors and Finances

Property and Motor Vehicle Insurance

Health,disability,and Long-Term Care Insurance

Life Insurance

Investing Fundamentals

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Investing in Real Estate and Other Investment Alternatives

Starting Early: Retirement Planning

Estate Planning

Filters