Question 1

Which of the following is not an element of a credit report?

Accepted Answer

A) Employer 
B) Length of relationship with creditors 
C) Marital status 
D) Your previous address 
A) Employer 
B) Length of relationship with creditors 
C) Marital status 
D) Your previous address

Question 2

Which of the following statements is True regarding a review of your credit agency report?

Accepted Answer

A) You will not have authority to make corrections,as the information must come from a financial institution. 
B) It will help determine if there are credit cards you should apply for to improve your credit standing. 
C) It will reveal if you have sufficient income to carry additional debt. 
D) It will reveal deficiencies that you can work on to improve your credit rating. 
A) You will not have authority to make corrections,as the information must come from a financial institution. 
B) It will help determine if there are credit cards you should apply for to improve your credit standing. 
C) It will reveal if you have sufficient income to carry additional debt. 
D) It will reveal deficiencies that you can work on to improve your credit rating.

Question 3

If a buyer has limited capital,leasing a car will usually require lower monthly payments than a car loan.

Accepted Answer

A) True 
 B)False

Question 4

For the best customers,a bank will lend money at

Accepted Answer

A) the prime rate. 
B) the T-bill rate. 
C) the minimum term rate. 
D) the bank rate. 
A) the prime rate. 
B) the T-bill rate. 
C) the minimum term rate. 
D) the bank rate.

Question 5

Posing as an employee of a brokerage firm to obtain information to allegedly update your account information is an example of

Accepted Answer

A) phishing. 
B) pharming. 
C) pretexting. 
D) skimming. 
A) phishing. 
B) pharming. 
C) pretexting. 
D) skimming.

Question 6

Discuss six of the choices to be made when making a decision between leasing and buying a car with a personal loan.

Accepted Answer

The total cost of the lease versus the t

Question 7

Which of the following is True about credit bureaus in Canada?

Accepted Answer

A) There are two federally appointed credit bureaus in Canada. 
B) It is impossible to have a better credit score at one bureau than another. 
C) Lenders may access your credit information without your permission. 
D) Lenders may use more than one credit bureau for information. 
A) There are two federally appointed credit bureaus in Canada. 
B) It is impossible to have a better credit score at one bureau than another. 
C) Lenders may access your credit information without your permission. 
D) Lenders may use more than one credit bureau for information.

Question 8

Errors on credit reports can occur.If there is an error on your report,

Accepted Answer

A) it is your responsibility to review it once a year for accuracy and inform of any errors. 
B) it can result in the credit agency being charged under the Fair Credit Reporting Act. 
C) the creditor reporting to the agency must correct it at your request. 
D) you must inform the Better Business Bureau to take your case to the authorities. 
A) it is your responsibility to review it once a year for accuracy and inform of any errors. 
B) it can result in the credit agency being charged under the Fair Credit Reporting Act. 
C) the creditor reporting to the agency must correct it at your request. 
D) you must inform the Better Business Bureau to take your case to the authorities.

Question 9

Which of the following is most accurate about interest rates in Canada?

Accepted Answer

A) Charging a rate of three percent for a seven day payday loan is legal in Canada. 
B) As long as loan charges come in the form of fees,they are not included in interest rate calculations in Canada. 
C) Payday loan companies provide a necessary service and have permission to charge above the maximum loan rate in Canada. 
D) The maximum interest rate that can be charged on a consumer loan in Canada is 60 percent. 
A) Charging a rate of three percent for a seven day payday loan is legal in Canada. 
B) As long as loan charges come in the form of fees,they are not included in interest rate calculations in Canada. 
C) Payday loan companies provide a necessary service and have permission to charge above the maximum loan rate in Canada. 
D) The maximum interest rate that can be charged on a consumer loan in Canada is 60 percent.

Question 10

What would be the real cost of borrowing in the following case? A home equity loan is advertised at three percent compounded monthly,however,there is a legal fee of $400 and appraisal fee of $450 to set up the house as collateral.If Sarah needs to borrow $20 000 for one year,at which time will be able to repay the full amount,what is the effective rate of borrowing the $20 000 for the year?

Accepted Answer

A) 3)04% 
B) 7)29% 
C) 7)25% 
D) 4)25% 
A) 3)04% 
B) 7)29% 
C) 7)25% 
D) 4)25%

Question 11

Beth wants to borrow $18 000 for five years and she has a choice of two loans.One carries an annual rate of 10 percent and the other a 9.5 percent rate compounded semi-annually.Which is her best choice? Calculate the answer by comparing the effective annual rates of interest.

Accepted Answer

Math calculations are required to comput

Question 12

In considering the True cost of a personal loan,if you used collateral to reduce the interest charge,then the appraisal fee charged to evaluate the assets should not be considered part of the cost of borrowing.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is the most serious threat from identity theft?

Accepted Answer

A) Criminal activities attributed to the victim 
B) The financial cost to society 
C) Loss of access to credit 
D) Credit card charges made by the perpetrator 
A) Criminal activities attributed to the victim 
B) The financial cost to society 
C) Loss of access to credit 
D) Credit card charges made by the perpetrator

Question 14

A credit bureau report may include

Accepted Answer

A) your account history. 
B) your spouse's name. 
C) a list of debtor contacts. 
D) All of the above 
A) your account history. 
B) your spouse's name. 
C) a list of debtor contacts. 
D) All of the above

Question 15

If you are a victim of identity theft,you may be turned down for employment as a result of incorrect background information.

Accepted Answer

A) True 
 B)False

Question 16

Manipulating email viruses and host files to redirect users from legitimate commercial websites to bogus websites to obtain log-in names and passwords is referred to as

Accepted Answer

A) pharming. 
B) phishing. 
C) skimming. 
D) trolling. 
A) pharming. 
B) phishing. 
C) skimming. 
D) trolling.

Question 17

Which of the following is most accurate about second mortgages?

Accepted Answer

A) Most people have two mortgages on their homes. 
B) The primary mortgage is for the down payment and the secondary mortgage is the main mortgage. 
C) A home equity loan is commonly a second mortgage. 
D) Second mortgages are last resort financing. 
A) Most people have two mortgages on their homes. 
B) The primary mortgage is for the down payment and the secondary mortgage is the main mortgage. 
C) A home equity loan is commonly a second mortgage. 
D) Second mortgages are last resort financing.

Question 18

One of the greatest benefits of leasing a car is that you do not have the hassles of ownership.

Accepted Answer

A) True 
 B)False

Question 19

Someone with a credit score of 800 will pay a higher interest rate than someone with a score of 820.

Accepted Answer

A) True 
 B)False

Question 20

A house was purchased for $300 000 and has a market value of $325 000 and a mortgage of $213 000.The equity in this house is

Accepted Answer

A) $87 000. 
B) 34.5 percent. 
C) $112 000. 
D) $25 000. 
A) $87 000. 
B) 34.5 percent. 
C) $112 000. 
D) $25 000.

Which of the following is not an element of a credit report?

Which of the following statements is True regarding a review of your credit agency report?

If a buyer has limited capital,leasing a car will usually require lower monthly payments than a car loan.

For the best customers,a bank will lend money at

Posing as an employee of a brokerage firm to obtain information to allegedly update your account information is an example of

Discuss six of the choices to be made when making a decision between leasing and buying a car with a personal loan.

Which of the following is True about credit bureaus in Canada?

Errors on credit reports can occur.If there is an error on your report,

Which of the following is most accurate about interest rates in Canada?

Beth wants to borrow $18 000 for five years and she has a choice of two loans.One carries an annual rate of 10 percent and the other a 9.5 percent rate compounded semi-annually.Which is her best choice? Calculate the answer by comparing the effective annual rates of interest.

In considering the True cost of a personal loan,if you used collateral to reduce the interest charge,then the appraisal fee charged to evaluate the assets should not be considered part of the cost of borrowing.

Which of the following is the most serious threat from identity theft?

A credit bureau report may include

If you are a victim of identity theft,you may be turned down for employment as a result of incorrect background information.

Manipulating email viruses and host files to redirect users from legitimate commercial websites to bogus websites to obtain log-in names and passwords is referred to as

Which of the following is most accurate about second mortgages?

One of the greatest benefits of leasing a car is that you do not have the hassles of ownership.

Someone with a credit score of 800 will pay a higher interest rate than someone with a score of 820.

A house was purchased for $300 000 and has a market value of $325 000 and a mortgage of $213 000.The equity in this house is

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

Which of the following is not an element of a credit report?

Which of the following statements is True regarding a review of your credit agency report?

If a buyer has limited capital,leasing a car will usually require lower monthly payments than a car loan.

For the best customers,a bank will lend money at

Posing as an employee of a brokerage firm to obtain information to allegedly update your account information is an example of

Discuss six of the choices to be made when making a decision between leasing and buying a car with a personal loan.

Which of the following is True about credit bureaus in Canada?

Errors on credit reports can occur.If there is an error on your report,

Which of the following is most accurate about interest rates in Canada?

Beth wants to borrow $18 000 for five years and she has a choice of two loans.One carries an annual rate of 10 percent and the other a 9.5 percent rate compounded semi-annually.Which is her best choice? Calculate the answer by comparing the effective annual rates of interest.

In considering the True cost of a personal loan,if you used collateral to reduce the interest charge,then the appraisal fee charged to evaluate the assets should not be considered part of the cost of borrowing.

Which of the following is the most serious threat from identity theft?

A credit bureau report may include

If you are a victim of identity theft,you may be turned down for employment as a result of incorrect background information.

Manipulating email viruses and host files to redirect users from legitimate commercial websites to bogus websites to obtain log-in names and passwords is referred to as

Which of the following is most accurate about second mortgages?

One of the greatest benefits of leasing a car is that you do not have the hassles of ownership.

Someone with a credit score of 800 will pay a higher interest rate than someone with a score of 820.

A house was purchased for $300 000 and has a market value of $325 000 and a mortgage of $213 000.The equity in this house is

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

Filters