Question 1

Which of the following financing methods provides a float period?

Accepted Answer

A) installment loan 
B) lump-sum loan 
C) credit card 
D) home equity line of credit 
E) a loan from a relative 
A) installment loan 
B) lump-sum loan 
C) credit card 
D) home equity line of credit 
E) a loan from a relative

Question 2

If you borrow $200 at 8 percent annual interest and repay it in one lump sum at the end of one year, you will have to pay

Accepted Answer

A) $16. 
B) $200. 
C) $216. 
D) $208 
E) $8. 
A) $16. 
B) $200. 
C) $216. 
D) $208 
E) $8.

Question 3

Credit unions rarely offer the same range of consumer loans that banks and other financial institutions do.

Accepted Answer

A) True 
 B)False

Question 4

Two key concepts that you should keep in mind when borrowing are the finance charge and the annual percentage rate.

Accepted Answer

A) True 
 B)False

Question 5

Credit counselors will aid families by

Accepted Answer

A) setting up a budget for them. 
B) paying off their loans. 
C) providing free basic necessities. 
D) providing one month free shelter. 
E) relocating them in less expensive areas. 
A) setting up a budget for them. 
B) paying off their loans. 
C) providing free basic necessities. 
D) providing one month free shelter. 
E) relocating them in less expensive areas.

Question 6

Inflation decreases the purchasing power of money.

Accepted Answer

A) True 
 B)False

Question 7

The interest rate on a collateralized loan is relatively low, but one of the disadvantages of such loans is that

Accepted Answer

A) the loan must be repaid in a short period of time. 
B) the assets used as collateral are tied up until the loan has been repaid. 
C) the loan is difficult to obtain. 
D) commercial banks do not make such loans. 
E) you ruin your credit rating. 
A) the loan must be repaid in a short period of time. 
B) the assets used as collateral are tied up until the loan has been repaid. 
C) the loan is difficult to obtain. 
D) commercial banks do not make such loans. 
E) you ruin your credit rating.

Question 8

If you default on your automobile loan,

Accepted Answer

A) an advance notice to you is required before your car is repossessed. 
B) no advance notice is required before repossession. 
C) the federal consumer credit laws give you protection. 
D) you don't have to pay the full balance due on the loan. 
E) the creditor pays the towing and storage costs. 
A) an advance notice to you is required before your car is repossessed. 
B) no advance notice is required before repossession. 
C) the federal consumer credit laws give you protection. 
D) you don't have to pay the full balance due on the loan. 
E) the creditor pays the towing and storage costs.

Question 9

A maximum 5-year plan for paying creditors all or a portion of outstanding debt is referred to as a consumer ________________________.

Accepted Answer

A) bankruptcy 
B) proposal 
C) consolidation 
D) counseling 
E) Assurance 
A) bankruptcy 
B) proposal 
C) consolidation 
D) counseling 
E) Assurance

Question 10

The consumer proposal is a maximum five-year plan for paying creditors all or apportion of the total debt owed.

Accepted Answer

A) True 
 B)False

Question 11

Credit costs usually do not vary.

Accepted Answer

A) True 
 B)False

Question 12

By current Canadian law, a lender in Canada can legally charge up to _________ per annum

Accepted Answer

A) 10% 
B) 22% 
C) 28% 
D) 60% 
E) there is no limit 
A) 10% 
B) 22% 
C) 28% 
D) 60% 
E) there is no limit

Question 13

You have two choices in declaring personal bankruptcy: A consumer proposal or declaration through an assignment in bankruptcy.

Accepted Answer

A) True 
 B)False

Question 14

Consolidation loans

Accepted Answer

A) have the advantage of a single interest rate on the full amount of your selected debts 
B) usually have shorter terms than your initial debts 
C) usually have lower interest rates because you are considered to be a lower risk for the lender 
D) are best used for low or no interest debts 
E) usually pay less overall when you extend the term of payment 
A) have the advantage of a single interest rate on the full amount of your selected debts 
B) usually have shorter terms than your initial debts 
C) usually have lower interest rates because you are considered to be a lower risk for the lender 
D) are best used for low or no interest debts 
E) usually pay less overall when you extend the term of payment

Question 15

Student loans to finance education beyond high school

Accepted Answer

A) have rates that are subsidized by the Government of Canada 
B) charge interest rates equal to commercial rates 
C) must be repaid but interest is not charged if repaid in a timely manner 
D) can be cancelled if you were dissatisfied with your education 
E) are available to all full-and part-time post-secondary students regardless of financial need 
A) have rates that are subsidized by the Government of Canada 
B) charge interest rates equal to commercial rates 
C) must be repaid but interest is not charged if repaid in a timely manner 
D) can be cancelled if you were dissatisfied with your education 
E) are available to all full-and part-time post-secondary students regardless of financial need

Question 16

If you borrow $100 at 12 percent annual interest and repay it in one lump sum at the end of one year, you will have to pay

Accepted Answer

A) $12. 
B) $100. 
C) $112. 
D) $1,200. 
E) $8.33. 
A) $12. 
B) $100. 
C) $112. 
D) $1,200. 
E) $8.33.

Question 17

The type of bankruptcy or proposal that has increased the most from 1997 to 2016 is:

Accepted Answer

A) Personal proposals 
B) Business proposals 
C) Personal bankruptcies 
D) Business Bankruptcy 
E) Government Bankruptcy 
A) Personal proposals 
B) Business proposals 
C) Personal bankruptcies 
D) Business Bankruptcy 
E) Government Bankruptcy

Question 18

In financial institutions, the sources of credit:

Accepted Answer

A) come in all shapes and sizes. 
B) play an important role in our economy. 
C) are typically short term 
D) A and B are correct 
E) A, B and C are correct 
A) come in all shapes and sizes. 
B) play an important role in our economy. 
C) are typically short term 
D) A and B are correct 
E) A, B and C are correct

Question 19

Governmental non-profit counseling services are usually free or at low cost.

Accepted Answer

A) True 
 B)False

Question 20

An increasing number of bankruptcy filers are well-educated middle-class baby boomers.

Accepted Answer

A) True 
 B)False

Which of the following financing methods provides a float period?

If you borrow $200 at 8 percent annual interest and repay it in one lump sum at the end of one year, you will have to pay

Credit unions rarely offer the same range of consumer loans that banks and other financial institutions do.

Two key concepts that you should keep in mind when borrowing are the finance charge and the annual percentage rate.

Credit counselors will aid families by

Inflation decreases the purchasing power of money.

The interest rate on a collateralized loan is relatively low, but one of the disadvantages of such loans is that

If you default on your automobile loan,

A maximum 5-year plan for paying creditors all or a portion of outstanding debt is referred to as a consumer ________________________.

The consumer proposal is a maximum five-year plan for paying creditors all or apportion of the total debt owed.

Credit costs usually do not vary.

By current Canadian law, a lender in Canada can legally charge up to _________ per annum

You have two choices in declaring personal bankruptcy: A consumer proposal or declaration through an assignment in bankruptcy.

Consolidation loans

Student loans to finance education beyond high school

If you borrow $100 at 12 percent annual interest and repay it in one lump sum at the end of one year, you will have to pay

The type of bankruptcy or proposal that has increased the most from 1997 to 2016 is:

In financial institutions, the sources of credit:

Governmental non-profit counseling services are usually free or at low cost.

An increasing number of bankruptcy filers are well-educated middle-class baby boomers.

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

Which of the following financing methods provides a float period?

If you borrow $200 at 8 percent annual interest and repay it in one lump sum at the end of one year, you will have to pay

Credit unions rarely offer the same range of consumer loans that banks and other financial institutions do.

Two key concepts that you should keep in mind when borrowing are the finance charge and the annual percentage rate.

Credit counselors will aid families by

Inflation decreases the purchasing power of money.

The interest rate on a collateralized loan is relatively low, but one of the disadvantages of such loans is that

If you default on your automobile loan,

A maximum 5-year plan for paying creditors all or a portion of outstanding debt is referred to as a consumer ________________________.

The consumer proposal is a maximum five-year plan for paying creditors all or apportion of the total debt owed.

Credit costs usually do not vary.

By current Canadian law, a lender in Canada can legally charge up to _________ per annum

You have two choices in declaring personal bankruptcy: A consumer proposal or declaration through an assignment in bankruptcy.

Consolidation loans

Student loans to finance education beyond high school

If you borrow $100 at 12 percent annual interest and repay it in one lump sum at the end of one year, you will have to pay

The type of bankruptcy or proposal that has increased the most from 1997 to 2016 is:

In financial institutions, the sources of credit:

Governmental non-profit counseling services are usually free or at low cost.

An increasing number of bankruptcy filers are well-educated middle-class baby boomers.

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