Question 1

A large number of recent credit inquiries suggests

Accepted Answer

A) you have a high BEACON score. 
B) you are having trouble getting credit. 
C) you have a good rating with many financial institutions. 
D) you are very diligent in tracking your credit information. 
A) you have a high BEACON score. 
B) you are having trouble getting credit. 
C) you have a good rating with many financial institutions. 
D) you are very diligent in tracking your credit information.

Question 2

Despite a high credit score,your income level may be the determining factor in whether you can get a loan.

Accepted Answer

A) True 
 B)False

Question 3

A person can be declared insolvent if

Accepted Answer

A) he or she has more debts than assets. 
B) his or her spouse is insolvent as well. 
C) he or she owes $1000 and is unable to pay. 
D) his or her monthly payments exceed $1000. 
A) he or she has more debts than assets. 
B) his or her spouse is insolvent as well. 
C) he or she owes $1000 and is unable to pay. 
D) his or her monthly payments exceed $1000.

Question 4

The advantage of leasing over purchasing a vehicle is

Accepted Answer

A) no deposit is required. 
B) lower monthly payments than for borrowing. 
C) there is less hassle than when purchasing a vehicle. 
D) there are no maintenance expenses. 
A) no deposit is required. 
B) lower monthly payments than for borrowing. 
C) there is less hassle than when purchasing a vehicle. 
D) there are no maintenance expenses.

Question 5

If a credit card company has a 30-day billing period,20-day grace period and an interest rate of 20 percent,how much interest will be charged on a $5000 average monthly balance which gets paid 40 days after the due date using the average daily balance method?

Accepted Answer

A) $258.90 
B) $115.07 
C) $201.37 
D) $172.60 
A) $258.90 
B) $115.07 
C) $201.37 
D) $172.60

Question 6

TransUnion is aware that you are one month late on your car payment,while Equifax has not yet uncovered this information.Which of the following statements is correct?

Accepted Answer

A) TransUnion will have a lower credit score for you than Equifax. 
B) Both companies will have the same credit score because of the grace period. 
C) Being late one month on a car payment will not affect your BEACON score. 
D) Both companies will have the same credit score because car payments are backed by collateral. 
A) TransUnion will have a lower credit score for you than Equifax. 
B) Both companies will have the same credit score because of the grace period. 
C) Being late one month on a car payment will not affect your BEACON score. 
D) Both companies will have the same credit score because car payments are backed by collateral.

Question 7

When do you need to use a credit repair service?

Accepted Answer

A) When you find an error on your credit report which is negatively affecting your score 
B) At the point that you need to work with the trustee in bankruptcy to develop a consumer proposal 
C) A credit repair company should be contacted only as a last resort to avoid bankruptcy. 
D) Never,as they have no special powers to correct information on your credit report. 
A) When you find an error on your credit report which is negatively affecting your score 
B) At the point that you need to work with the trustee in bankruptcy to develop a consumer proposal 
C) A credit repair company should be contacted only as a last resort to avoid bankruptcy. 
D) Never,as they have no special powers to correct information on your credit report.

Question 8

If you declare bankruptcy within seven years of ceasing to be a student,you may have your student loans forgiven.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following will have a negative effect on a credit history?

Accepted Answer

A) Taking out a car loan with a ten year maturity 
B) Making as many purchases as possible with cash 
C) Never exceeding your credit limit on your credit card 
D) All these options would have a positive effect on credit history. 
A) Taking out a car loan with a ten year maturity 
B) Making as many purchases as possible with cash 
C) Never exceeding your credit limit on your credit card 
D) All these options would have a positive effect on credit history.

Question 10

Credit insurance

Accepted Answer

A) is a free benefit on most credit cards. 
B) can be used to pay off all debt when a creditor becomes unemployed. 
C) is a good substitute for health and disability insurance. 
D) can cover monthly credit repayments if a consumer cannot work. 
A) is a free benefit on most credit cards. 
B) can be used to pay off all debt when a creditor becomes unemployed. 
C) is a good substitute for health and disability insurance. 
D) can cover monthly credit repayments if a consumer cannot work.

Question 11

Identity thieves that obtain your information from the magnetic strip on your credit card are using a technique known as

Accepted Answer

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

Question 12

Explain how use of a credit card can affect the successful implementation of a financial plan.Itemize at least ten benefits and disadvantages of using credit cards in the financial planning process.

Accepted Answer

Answers will vary,but here is a selectio

Question 13

Revolving open-end credit typically does not specify a maximum amount that can be borrowed.

Accepted Answer

A) True 
 B)False

Question 14

If Brian has a home worth $400 000 and a mortgage of $200 000,he should be able to get a HELOC for $160 000 at a better interest rate than if he got an unsecured line of credit.

Accepted Answer

A) True 
 B)False

Question 15

Sue obtains a one year loan of $3000 based on an annual interest rate of 12 percent.What would be the monthly payment to pay it off in one year?

Accepted Answer

A) $278 
B) $280 
C) $303 
D) $266 
A) $278 
B) $280 
C) $303 
D) $266

Question 16

Even though you may have a very high credit score,the loan approval

Accepted Answer

A) relies on a lower BEACON score. 
B) relies on consistent scores from all credit reporting agencies. 
C) relies on the lender's assessment of sufficient income. 
D) relies on the impression you make with your lender. 
A) relies on a lower BEACON score. 
B) relies on consistent scores from all credit reporting agencies. 
C) relies on the lender's assessment of sufficient income. 
D) relies on the impression you make with your lender.

Question 17

Fred has a credit card which uses the average daily balance method,has a 30-day billing period,a 21-day grace period and charges 21 percent annual interest calculated (but not compounded)daily.His average daily balance for the billing period was $7900,and he could not pay it off until received his pay cheque eight days after the statement due date.How much interest does he owe?

Accepted Answer

A) $268.17 
B) $172.72 
C) $136.36 
D) $36.36 
A) $268.17 
B) $172.72 
C) $136.36 
D) $36.36

Question 18

Discuss at least four ways in which you can protect yourself from identity theft.

Accepted Answer

Students may include other recommendatio

Question 19

Which of the following will not be included on your credit report?

Accepted Answer

A) Social insurance number 
B) Your employment income 
C) Unpaid accounts 
D) Companies that have recently inquired about your credit report 
A) Social insurance number 
B) Your employment income 
C) Unpaid accounts 
D) Companies that have recently inquired about your credit report

A large number of recent credit inquiries suggests

Despite a high credit score,your income level may be the determining factor in whether you can get a loan.

A person can be declared insolvent if

The advantage of leasing over purchasing a vehicle is

If a credit card company has a 30-day billing period,20-day grace period and an interest rate of 20 percent,how much interest will be charged on a $5000 average monthly balance which gets paid 40 days after the due date using the average daily balance method?

TransUnion is aware that you are one month late on your car payment,while Equifax has not yet uncovered this information.Which of the following statements is correct?

When do you need to use a credit repair service?

If you declare bankruptcy within seven years of ceasing to be a student,you may have your student loans forgiven.

Which of the following will have a negative effect on a credit history?

Credit insurance

Identity thieves that obtain your information from the magnetic strip on your credit card are using a technique known as

Explain how use of a credit card can affect the successful implementation of a financial plan.Itemize at least ten benefits and disadvantages of using credit cards in the financial planning process.

Revolving open-end credit typically does not specify a maximum amount that can be borrowed.

If Brian has a home worth $400 000 and a mortgage of $200 000,he should be able to get a HELOC for $160 000 at a better interest rate than if he got an unsecured line of credit.

Sue obtains a one year loan of $3000 based on an annual interest rate of 12 percent.What would be the monthly payment to pay it off in one year?

Even though you may have a very high credit score,the loan approval

Discuss at least four ways in which you can protect yourself from identity theft.

Which of the following will not be included on your credit report?

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 large number of recent credit inquiries suggests

Despite a high credit score,your income level may be the determining factor in whether you can get a loan.

A person can be declared insolvent if

The advantage of leasing over purchasing a vehicle is

If a credit card company has a 30-day billing period,20-day grace period and an interest rate of 20 percent,how much interest will be charged on a $5000 average monthly balance which gets paid 40 days after the due date using the average daily balance method?

TransUnion is aware that you are one month late on your car payment,while Equifax has not yet uncovered this information.Which of the following statements is correct?

When do you need to use a credit repair service?

If you declare bankruptcy within seven years of ceasing to be a student,you may have your student loans forgiven.

Which of the following will have a negative effect on a credit history?

Credit insurance

Identity thieves that obtain your information from the magnetic strip on your credit card are using a technique known as

Explain how use of a credit card can affect the successful implementation of a financial plan.Itemize at least ten benefits and disadvantages of using credit cards in the financial planning process.

Revolving open-end credit typically does not specify a maximum amount that can be borrowed.

If Brian has a home worth $400 000 and a mortgage of $200 000,he should be able to get a HELOC for $160 000 at a better interest rate than if he got an unsecured line of credit.

Sue obtains a one year loan of $3000 based on an annual interest rate of 12 percent.What would be the monthly payment to pay it off in one year?

Even though you may have a very high credit score,the loan approval

Discuss at least four ways in which you can protect yourself from identity theft.

Which of the following will not be included on your credit report?

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