Question 1

Which of the following are signs of debt problems?

Accepted Answer

A) continually go over your spending limit 
B) use credit cards as a necessity rather than as a convenience 
C) always borrowing money to make it from one payday to the next 
D) you pay only interest or service charges monthly and do not reduce your total debt 
E) all these statements are signs of debt problems. 
A) continually go over your spending limit 
B) use credit cards as a necessity rather than as a convenience 
C) always borrowing money to make it from one payday to the next 
D) you pay only interest or service charges monthly and do not reduce your total debt 
E) all these statements are signs of debt problems. E

Question 2

Credit life insurance provides for the repayment of the loan if the borrower dies.

Accepted Answer

A) True 
 B)False  True

Question 3

Increasingly, the bankruptcy debtor is likely to be female.

Accepted Answer

A) True 
 B)False  True

Question 4

Consumer credit counseling services are basically concerned with

Accepted Answer

A) lending the money to destitute people. 
B) giving debtors food and shelter. 
C) helping destitute debtors to relocate in less expensive areas. 
D) preventing and solving the problems related to credit overextension. 
E) getting you more credit 
A) lending the money to destitute people. 
B) giving debtors food and shelter. 
C) helping destitute debtors to relocate in less expensive areas. 
D) preventing and solving the problems related to credit overextension. 
E) getting you more credit

Question 5

In order to minimize complications, all loans to and from family members should

Accepted Answer

A) be in writing 
B) state the interest rate, if there is an interest rate 
C) include a repayment schedule 
D) include the final payment date 
E) all of these should be included 
A) be in writing 
B) state the interest rate, if there is an interest rate 
C) include a repayment schedule 
D) include the final payment date 
E) all of these should be included

Question 6

According to many consumer organizations

Accepted Answer

A) credit life insurance is the most important to have. 
B) credit accident insurance is most important to have. 
C) credit health insurance is the most important to have. 
D) credit life insurance is not needed by most borrowers. 
E) credit disability insurance is most important to have. 
A) credit life insurance is the most important to have. 
B) credit accident insurance is most important to have. 
C) credit health insurance is the most important to have. 
D) credit life insurance is not needed by most borrowers. 
E) credit disability insurance is most important to have.

Question 7

There are no costs involved in filing for a bankruptcy or submitting a consumer proposal.

Accepted Answer

A) True 
 B)False

Question 8

If creditors add finance charges after subtracting payments made during the billing period, this is called the

Accepted Answer

A) adjusted balance method. 
B) discount method. 
C) previous balance method. 
D) APR method 
E) average daily balance method. 
A) adjusted balance method. 
B) discount method. 
C) previous balance method. 
D) APR method 
E) average daily balance method.

Question 9

In a straight bankruptcy many, but not all, debts are forgiven.

Accepted Answer

A) True 
 B)False

Question 10

The consumer credit laws require that an advance notice be given before repossessing a car.

Accepted Answer

A) True 
 B)False

Question 11

What is monthly payment for a $25,000 amortized loan to purchase a car payable over 5 years at an annual interest rate of 12%?

Accepted Answer

A) $200 
B) $333 
C) $445 
D) $556 
E) $565 
A) $200 
B) $333 
C) $445 
D) $556 
E) $565

Question 12

Student loans to finance education beyond high school

Accepted Answer

A) are available from the Government of Canada 
B) charge lower interest rates than commercial rates 
C) must be repaid with interest, just like car loans and mortgages 
D) cannot be cancelled because you were dissatisfied with your education 
E) all of these choices are correct 
A) are available from the Government of Canada 
B) charge lower interest rates than commercial rates 
C) must be repaid with interest, just like car loans and mortgages 
D) cannot be cancelled because you were dissatisfied with your education 
E) all of these choices are correct

Question 13

You may be able to borrow at a lower interest rate if you accept a shorter-term loan.

Accepted Answer

A) True 
 B)False

Question 14

The fairest method of calculating the interest is the adjusted balance method.

Accepted Answer

A) True 
 B)False

Question 15

Banks often encourage you to make the maximum payment.

Accepted Answer

A) True 
 B)False

Question 16

Inflation increases the purchasing power of money.

Accepted Answer

A) True 
 B)False

Question 17

The most commonly purchased type of credit insurance is credit life insurance.

Accepted Answer

A) True 
 B)False

Question 18

The longer the term of the loan the greater the amount of interest charges that must be paid.

Accepted Answer

A) True 
 B)False

Question 19

If you declare bankruptcy, you, must continue to pay any alimony, child support, debts incurred through fraud and court costs.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following are signs of debt problems?

Accepted Answer

A) foreclosure proceedings. 
B) overdue payments. 
C) approaching credit limits. 
D) A and B are correct. 
E) A, B and C are correct. 
A) foreclosure proceedings. 
B) overdue payments. 
C) approaching credit limits. 
D) A and B are correct. 
E) A, B and C are correct.

Which of the following are signs of debt problems?

Credit life insurance provides for the repayment of the loan if the borrower dies.

Increasingly, the bankruptcy debtor is likely to be female.

Consumer credit counseling services are basically concerned with

In order to minimize complications, all loans to and from family members should

According to many consumer organizations

There are no costs involved in filing for a bankruptcy or submitting a consumer proposal.

If creditors add finance charges after subtracting payments made during the billing period, this is called the

In a straight bankruptcy many, but not all, debts are forgiven.

The consumer credit laws require that an advance notice be given before repossessing a car.

What is monthly payment for a $25,000 amortized loan to purchase a car payable over 5 years at an annual interest rate of 12%?

Student loans to finance education beyond high school

You may be able to borrow at a lower interest rate if you accept a shorter-term loan.

The fairest method of calculating the interest is the adjusted balance method.

Banks often encourage you to make the maximum payment.

Inflation increases the purchasing power of money.

The most commonly purchased type of credit insurance is credit life insurance.

The longer the term of the loan the greater the amount of interest charges that must be paid.

If you declare bankruptcy, you, must continue to pay any alimony, child support, debts incurred through fraud and court costs.

Which of the following are signs of debt problems?

Personal Financial Planning: An Introduction

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

Banking Services of Financial Institutions

Introduction to Consumer Credit

The Finances of Housing

Home and Automobile Insurance

Life, Health, and Disability Insurance

Fundamentals of Investing

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Retirement Planning

Estate Planning

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Exam 6: Choosing a Source of Credit: The Costs of Credit Alternatives

Which of the following are signs of debt problems?

Credit life insurance provides for the repayment of the loan if the borrower dies.

Increasingly, the bankruptcy debtor is likely to be female.

Consumer credit counseling services are basically concerned with

In order to minimize complications, all loans to and from family members should

According to many consumer organizations

There are no costs involved in filing for a bankruptcy or submitting a consumer proposal.

If creditors add finance charges after subtracting payments made during the billing period, this is called the

In a straight bankruptcy many, but not all, debts are forgiven.

The consumer credit laws require that an advance notice be given before repossessing a car.

What is monthly payment for a $25,000 amortized loan to purchase a car payable over 5 years at an annual interest rate of 12%?

Student loans to finance education beyond high school

You may be able to borrow at a lower interest rate if you accept a shorter-term loan.

The fairest method of calculating the interest is the adjusted balance method.

Banks often encourage you to make the maximum payment.

Inflation increases the purchasing power of money.

The most commonly purchased type of credit insurance is credit life insurance.

The longer the term of the loan the greater the amount of interest charges that must be paid.

If you declare bankruptcy, you, must continue to pay any alimony, child support, debts incurred through fraud and court costs.

Which of the following are signs of debt problems?

Personal Financial Planning: An Introduction

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

Banking Services of Financial Institutions

Introduction to Consumer Credit

The Finances of Housing

Home and Automobile Insurance

Life, Health, and Disability Insurance

Fundamentals of Investing

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Retirement Planning

Estate Planning

Filters