Question 1

A typical credit report will disclose the following information except

Accepted Answer

A) a summary of your accounts. 
B) your personal information. 
C) a list of your creditor contacts. 
D) public information regarding your spouse's bankruptcies. 
A) a summary of your accounts. 
B) your personal information. 
C) a list of your creditor contacts. 
D) public information regarding your spouse's bankruptcies.

Question 2

The most important element affecting your credit score is your debt level.

Accepted Answer

A) True 
 B)False

Question 3

Collateral

Accepted Answer

A) gives the lender additional recourse if the payments are not made. 
B) is used on unsecured loans. 
C) increases the interest rate on loans. 
D) is required on all loans except revolving credit. 
A) gives the lender additional recourse if the payments are not made. 
B) is used on unsecured loans. 
C) increases the interest rate on loans. 
D) is required on all loans except revolving credit.

Question 4

You have the cash available to pay off a $6500 loan that will cost you $450 in interest this year and you are deciding whether to pay it off or make an investment.If you are in a 30 percent marginal tax bracket,how much interest would you have to earn to make the investment a better decision?

Accepted Answer

Your $6500 investment must obviously ear

Question 5

Identity theft is only conducted by individuals who do not have legitimate access to your information.

Accepted Answer

A) True 
 B)False

Question 6

Your house is worth $278 000 and you have a first mortgage of $190 000.You are also using the house to secure a personal loan for $8500.How large a home equity line of credit can you qualify for?

Accepted Answer

A) $63 600. 
B) $31 400. 
C) $70 400. 
D) $23 900. 
A) $63 600. 
B) $31 400. 
C) $70 400. 
D) $23 900.

Question 7

Harry purchased his condo for $330 000 and now the appraised value is $360 000.His outstanding mortgage is $228 000.What is the maximum home equity line of credit Harry would qualify for?

Accepted Answer

A) $36 000 
B) $60 000 
C) $72 000 
D) $105,600 
A) $36 000 
B) $60 000 
C) $72 000 
D) $105,600

Question 8

Acquiring and using a credit card is an excellent way to start building your credit history.

Accepted Answer

A) True 
 B)False

Question 9

Credit issued by department stores for relatively long periods of time is called non-installment credit.

Accepted Answer

A) True 
 B)False

Question 10

Your credit report indicates your spouse's personal information.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is a True statement about student loans?

Accepted Answer

A) All student loans are provided directly to students. 
B) All student loans are provided to parents of students. 
C) The repayment schedule is deferred. 
D) Students who declare bankruptcy within seven years of graduation may have their loans forgiven. 
A) All student loans are provided directly to students. 
B) All student loans are provided to parents of students. 
C) The repayment schedule is deferred. 
D) Students who declare bankruptcy within seven years of graduation may have their loans forgiven.

Question 12

The credit bureaus will have approximately the same score for each individual in their records.

Accepted Answer

A) True 
 B)False

Question 13

Most adults in Canada have revolving open-end credit.

Accepted Answer

A) True 
 B)False

Question 14

When you use credit to purchase a second coat at half price,you save money.

Accepted Answer

A) True 
 B)False

Question 15

If you have a poor credit score,there may be lenders willing to loan you money but at a higher interest rate.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is an advantage of using credit?

Accepted Answer

A) It increases the need to cover cash flow shortages. 
B) It increases the number of cheques written. 
C) It does not affect your cash flow statement. 
D) It reduces the need to carry cash. 
A) It increases the need to cover cash flow shortages. 
B) It increases the number of cheques written. 
C) It does not affect your cash flow statement. 
D) It reduces the need to carry cash.

Question 17

The proceeds from a home equity loan must be used for home improvements.

Accepted Answer

A) True 
 B)False

Question 18

Low credit scores may result in

Accepted Answer

A) lower interest rates for borrowing. 
B) higher interest rates for borrowing. 
C) automatic acceptance of your credit application. 
D) targeting by credit companies. 
A) lower interest rates for borrowing. 
B) higher interest rates for borrowing. 
C) automatic acceptance of your credit application. 
D) targeting by credit companies.

Question 19

Using the previous balance method,if you paid your credit card off five days late and your balance was $5000,with interest 20% calculated daily,you would owe $15.16 in interest.

Accepted Answer

A) True 
 B)False

Question 20

In making the purchase versus lease decision,it is important to remember that

Accepted Answer

A) dealers may impose additional charges for leasing. 
B) leasing is less risky because you do not have equity. 
C) leasing is less expensive overall than purchasing. 
D) you won't be required to pay maintenance costs on the leased car. 
A) dealers may impose additional charges for leasing. 
B) leasing is less risky because you do not have equity. 
C) leasing is less expensive overall than purchasing. 
D) you won't be required to pay maintenance costs on the leased car.

A typical credit report will disclose the following information except

The most important element affecting your credit score is your debt level.

Collateral

You have the cash available to pay off a $6500 loan that will cost you $450 in interest this year and you are deciding whether to pay it off or make an investment.If you are in a 30 percent marginal tax bracket,how much interest would you have to earn to make the investment a better decision?

Identity theft is only conducted by individuals who do not have legitimate access to your information.

Your house is worth $278 000 and you have a first mortgage of $190 000.You are also using the house to secure a personal loan for $8500.How large a home equity line of credit can you qualify for?

Harry purchased his condo for $330 000 and now the appraised value is $360 000.His outstanding mortgage is $228 000.What is the maximum home equity line of credit Harry would qualify for?

Acquiring and using a credit card is an excellent way to start building your credit history.

Credit issued by department stores for relatively long periods of time is called non-installment credit.

Your credit report indicates your spouse's personal information.

Which of the following is a True statement about student loans?

The credit bureaus will have approximately the same score for each individual in their records.

Most adults in Canada have revolving open-end credit.

When you use credit to purchase a second coat at half price,you save money.

If you have a poor credit score,there may be lenders willing to loan you money but at a higher interest rate.

Which of the following is an advantage of using credit?

The proceeds from a home equity loan must be used for home improvements.

Low credit scores may result in

Using the previous balance method,if you paid your credit card off five days late and your balance was $5000,with interest 20% calculated daily,you would owe $15.16 in interest.

In making the purchase versus lease decision,it is important to remember that

Overview of a Financial Plan

Tools for Financial Planning - Applying Time Value Concepts

Tools for Financial Planning - Planning with Personal Financial Statements

Tools for Financial Planning - Using Tax Concepts for Planning

Managing Your Financial Resources - Banking Services and Managing Your Money

Managing Your Financial Resources - Purchasing and Financing a Home

Protecting Your Wealth - Auto and Homeowner's Insurance

Protecting Your Wealth - Health and Life Insurance

Personal Investing - Investing Fundamentals

Personal Investing - Investing in Stocks

Personal Investing - Investing in Bonds

Personal Investing - Investing in Mutual Funds

Retirement and Estate Planning - Retirement Planning

Retirement and Estate Planning - Estate Planning

Synthesis of Financial Planning - Integrating the Components of a Financial Plan

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Exam 6: Managing Your Financial Resources - Assessing, Managing, and Securing Your Credit

A typical credit report will disclose the following information except

The most important element affecting your credit score is your debt level.

Collateral

You have the cash available to pay off a $6500 loan that will cost you $450 in interest this year and you are deciding whether to pay it off or make an investment.If you are in a 30 percent marginal tax bracket,how much interest would you have to earn to make the investment a better decision?

Identity theft is only conducted by individuals who do not have legitimate access to your information.

Your house is worth $278 000 and you have a first mortgage of $190 000.You are also using the house to secure a personal loan for $8500.How large a home equity line of credit can you qualify for?

Harry purchased his condo for $330 000 and now the appraised value is $360 000.His outstanding mortgage is $228 000.What is the maximum home equity line of credit Harry would qualify for?

Acquiring and using a credit card is an excellent way to start building your credit history.

Credit issued by department stores for relatively long periods of time is called non-installment credit.

Your credit report indicates your spouse's personal information.

Which of the following is a True statement about student loans?

The credit bureaus will have approximately the same score for each individual in their records.

Most adults in Canada have revolving open-end credit.

When you use credit to purchase a second coat at half price,you save money.

If you have a poor credit score,there may be lenders willing to loan you money but at a higher interest rate.

Which of the following is an advantage of using credit?

The proceeds from a home equity loan must be used for home improvements.

Low credit scores may result in

Using the previous balance method,if you paid your credit card off five days late and your balance was $5000,with interest 20% calculated daily,you would owe $15.16 in interest.

In making the purchase versus lease decision,it is important to remember that

Overview of a Financial Plan

Tools for Financial Planning - Applying Time Value Concepts

Tools for Financial Planning - Planning with Personal Financial Statements

Tools for Financial Planning - Using Tax Concepts for Planning

Managing Your Financial Resources - Banking Services and Managing Your Money

Managing Your Financial Resources - Purchasing and Financing a Home

Protecting Your Wealth - Auto and Homeowner's Insurance

Protecting Your Wealth - Health and Life Insurance

Personal Investing - Investing Fundamentals

Personal Investing - Investing in Stocks

Personal Investing - Investing in Bonds

Personal Investing - Investing in Mutual Funds

Retirement and Estate Planning - Retirement Planning

Retirement and Estate Planning - Estate Planning

Synthesis of Financial Planning - Integrating the Components of a Financial Plan

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