Question 1

Most borrowers should buy credit life insurance.

Accepted Answer

A) True 
 B)False

Question 2

Lines of credit usually charge a variable interest rate, tied to the lender's prime rate.

Accepted Answer

A) True 
 B)False

Question 3

If you have trouble paying your bills,

Accepted Answer

A) take a personal finance course. 
B) turn to a company that claims to offer assistance in solving debt problems. 
C) check with your local Better Business Bureau for help. 
D) seek assistance from a collection agency. 
E) try to solve the problem with your creditor. 
A) take a personal finance course. 
B) turn to a company that claims to offer assistance in solving debt problems. 
C) check with your local Better Business Bureau for help. 
D) seek assistance from a collection agency. 
E) try to solve the problem with your creditor.

Question 4

You can often obtain medium-priced loans from banks, trust companies, and credit unions.

Accepted Answer

A) True 
 B)False

Question 5

A common major reason for indebtedness is:

Accepted Answer

A) Loss of income 
B) Job loss 
C) Immaturity 
D) Disability 
E) Being demoted at work 
A) Loss of income 
B) Job loss 
C) Immaturity 
D) Disability 
E) Being demoted at work

Question 6

Non-profit credit counseling services are sometimes provided by

Accepted Answer

A) universities. 
B) military bases. 
C) credit unions. 
D) provincial and federal authorities. 
E) All of them may provide such services. 
A) universities. 
B) military bases. 
C) credit unions. 
D) provincial and federal authorities. 
E) All of them may provide such services.

Question 7

What is the interest rate on a Canada Student Loan if the prime rate is 5%?

Accepted Answer

A) 2.5% 
B) 5% 
C) 7.5% 
D) 10% 
E) 12.5% 
A) 2.5% 
B) 5% 
C) 7.5% 
D) 10% 
E) 12.5%

Question 8

If you declare bankruptcy, you do not have to pay alimony, child support, or educational loans.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following tend to be expensive loans?

Accepted Answer

A) retailers 
B) banks 
C) credit unions 
D) family members 
E) trust companies 
A) retailers 
B) banks 
C) credit unions 
D) family members 
E) trust companies

Question 10

Most people who are unable to manage their debts are:

Accepted Answer

A) criminals who take advantage of creditors. 
B) living in the poverty-stricken areas. 
C) expected to declare Chapter 11 bankruptcy. 
D) mostly dishonest people. 
E) mostly honest people. 
A) criminals who take advantage of creditors. 
B) living in the poverty-stricken areas. 
C) expected to declare Chapter 11 bankruptcy. 
D) mostly dishonest people. 
E) mostly honest people.

Question 11

If you are having trouble paying your bills, turn to a company that claims to offer assistance in solving debt problems.

Accepted Answer

A) True 
 B)False

Question 12

If creditors give you no credit for payments made during the billing period, this is called the

Accepted Answer

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

Question 13

Obtaining credit may be easier for people who file a bankruptcy rather than a consumer proposal.

Accepted Answer

A) True 
 B)False

Question 14

To be eligible for the insolvency protection application called a consumer proposal

Accepted Answer

A) you must be solvent and more than $200,000 in debt 
B) you must be insolvent and more than $200,000 in debt 
C) you must be insolvent and less than $250,000 in debt, excluding a mortgage on your principal residence 
D) you must be solvent and less than $100,000 in debt 
E) you must be insolvent and more than $100,000 in debt, excluding a mortgage on your principal residence 
A) you must be solvent and more than $200,000 in debt 
B) you must be insolvent and more than $200,000 in debt 
C) you must be insolvent and less than $250,000 in debt, excluding a mortgage on your principal residence 
D) you must be solvent and less than $100,000 in debt 
E) you must be insolvent and more than $100,000 in debt, excluding a mortgage on your principal residence

Question 15

The most inexpensive loans available are provided by finance companies, retailers, and banks through credit cards.

Accepted Answer

A) True 
 B)False

Question 16

A variable interest rate is based on fluctuating rates in the banking system, such as the prime rate.

Accepted Answer

A) True 
 B)False

Question 17

Using parents or family members as lenders is the most risky type of loan method.

Accepted Answer

A) True 
 B)False

Question 18

Anyone overburdened by credit obligations can phone, write, or visit a credit counsellor.

Accepted Answer

A) True 
 B)False

Question 19

With a larger down payment, you'll probably pay a higher interest rate on your loan.

Accepted Answer

A) True 
 B)False

Question 20

On a Canada Student Loan you are allowed a one time opportunity to lock in the interest above prime.How much above prime is the locked in rate.

Accepted Answer

A) 2.5% 
B) 5% 
C) 7.5% 
D) 10% 
E) 12.5% 
A) 2.5% 
B) 5% 
C) 7.5% 
D) 10% 
E) 12.5%

Most borrowers should buy credit life insurance.

Lines of credit usually charge a variable interest rate, tied to the lender's prime rate.

If you have trouble paying your bills,

You can often obtain medium-priced loans from banks, trust companies, and credit unions.

A common major reason for indebtedness is:

Non-profit credit counseling services are sometimes provided by

What is the interest rate on a Canada Student Loan if the prime rate is 5%?

If you declare bankruptcy, you do not have to pay alimony, child support, or educational loans.

Which of the following tend to be expensive loans?

Most people who are unable to manage their debts are:

If you are having trouble paying your bills, turn to a company that claims to offer assistance in solving debt problems.

If creditors give you no credit for payments made during the billing period, this is called the

Obtaining credit may be easier for people who file a bankruptcy rather than a consumer proposal.

To be eligible for the insolvency protection application called a consumer proposal

The most inexpensive loans available are provided by finance companies, retailers, and banks through credit cards.

A variable interest rate is based on fluctuating rates in the banking system, such as the prime rate.

Using parents or family members as lenders is the most risky type of loan method.

Anyone overburdened by credit obligations can phone, write, or visit a credit counsellor.

With a larger down payment, you'll probably pay a higher interest rate on your loan.

On a Canada Student Loan you are allowed a one time opportunity to lock in the interest above prime.How much above prime is the locked in rate.

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

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

Most borrowers should buy credit life insurance.

Lines of credit usually charge a variable interest rate, tied to the lender's prime rate.

If you have trouble paying your bills,

You can often obtain medium-priced loans from banks, trust companies, and credit unions.

A common major reason for indebtedness is:

Non-profit credit counseling services are sometimes provided by

What is the interest rate on a Canada Student Loan if the prime rate is 5%?

If you declare bankruptcy, you do not have to pay alimony, child support, or educational loans.

Which of the following tend to be expensive loans?

Most people who are unable to manage their debts are:

If you are having trouble paying your bills, turn to a company that claims to offer assistance in solving debt problems.

If creditors give you no credit for payments made during the billing period, this is called the

Obtaining credit may be easier for people who file a bankruptcy rather than a consumer proposal.

To be eligible for the insolvency protection application called a consumer proposal

The most inexpensive loans available are provided by finance companies, retailers, and banks through credit cards.

A variable interest rate is based on fluctuating rates in the banking system, such as the prime rate.

Using parents or family members as lenders is the most risky type of loan method.

Anyone overburdened by credit obligations can phone, write, or visit a credit counsellor.

With a larger down payment, you'll probably pay a higher interest rate on your loan.

On a Canada Student Loan you are allowed a one time opportunity to lock in the interest above prime.How much above prime is the locked in rate.

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