Question 1

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

Accepted Answer

A) True 
 B)False  False

Question 2

If your credit company invites you to skip a monthly payment without a penalty, they are doing you a favor.

Accepted Answer

A) True 
 B)False  False

Question 3

With collateral, you will probably pay a higher interest rate on your loan than you would without collateral.

Accepted Answer

A) True 
 B)False  False

Question 4

What can you do if you are unable to meet your credit obligations?

Accepted Answer

The answer of What can you do if you are...

Question 5

The CCCS sometimes charges a fee if it:

Accepted Answer

A)  administers a debt repayment plan. 
B)  helps families manage their debts better. 
C)  sets up a realistic budget for them. 
D)  provides education to needy families. 
E)  contacts creditors. 
A)  administers a debt repayment plan. 
B)  helps families manage their debts better. 
C)  sets up a realistic budget for them. 
D)  provides education to needy families. 
E)  contacts creditors.

Question 6

In addition to the Consumer Credit Counseling Service, universities, credit unions, military bases, and state and federal housing authorities sometimes provide credit counseling services.

Accepted Answer

A) True 
 B)False

Question 7

The Consumer Credit Counseling Service will refinance all of your existing debts for you.

Accepted Answer

A) True 
 B)False

Question 8

Chuck Spencer wants to borrow money for three years to purchase a new car. He has been offered a seven percent fixed rate loan and also a variable rate loan that has an initial rate of five percent. By choosing the variable rate loan, Chuck is reducing the lender's risk by:

Accepted Answer

A)  sharing the interest rate risk. 
B)  increasing his monthly payments. 
C)  taking a larger stake in the asset he is purchasing. 
D)  repaying the loan over a faster period of time. 
E)  pledging collateral. 
A)  sharing the interest rate risk. 
B)  increasing his monthly payments. 
C)  taking a larger stake in the asset he is purchasing. 
D)  repaying the loan over a faster period of time. 
E)  pledging collateral.

Question 9

Banks often encourage you to make the maximum payment.

Accepted Answer

A) True 
 B)False

Question 10

The most expensive loans are available from:

Accepted Answer

A)  parents. 
B)  friends. 
C)  banks. 
D)  finance companies. 
E)  credit unions. 
A)  parents. 
B)  friends. 
C)  banks. 
D)  finance companies. 
E)  credit unions.

Question 11

Most people who are in debt over their heads are:

Accepted Answer

A)  criminals who take advantage of creditors. 
B)  living in poverty-stricken areas. 
C)  expected to declare Chapter 11 bankruptcy. 
D)  not college educated. 
E)  basically honest people. 
A)  criminals who take advantage of creditors. 
B)  living in poverty-stricken areas. 
C)  expected to declare Chapter 11 bankruptcy. 
D)  not college educated. 
E)  basically honest people.

Question 12

The Federal Trade Commission enforces the:

Accepted Answer

A)  Truth in Lending Act. 
B)  Equal Credit Opportunity Act. 
C)  Fair Credit Billing Act. 
D)  Fair Debt Collection Practices Act. 
E)  Fair Credit Reporting Act. 
A)  Truth in Lending Act. 
B)  Equal Credit Opportunity Act. 
C)  Fair Credit Billing Act. 
D)  Fair Debt Collection Practices Act. 
E)  Fair Credit Reporting Act.

Question 13

The finance charge is the total dollar amount you pay to use credit.

Accepted Answer

A) True 
 B)False

Question 14

Which one of the following is not a danger signal of potential debt problems?

Accepted Answer

A)  Paying the minimum balance due each month 
B)  Receiving notice of prompt payment from creditors 
C)  Using savings to pay for major purchases 
D)  Repaying loans faster than required 
E)  Depending on overtime and moonlighting to meet expenses 
A)  Paying the minimum balance due each month 
B)  Receiving notice of prompt payment from creditors 
C)  Using savings to pay for major purchases 
D)  Repaying loans faster than required 
E)  Depending on overtime and moonlighting to meet expenses

Question 15

The rule of 78s formula dictates that you pay less interest at the beginning of a loan.

Accepted Answer

A) True 
 B)False

Question 16

One of the drawbacks of borrowing from parents or family members is that such loans:

Accepted Answer

A)  tend to be more expensive than other types of loans. 
B)  must be interest-free. 
C)  may create tension within the family. 
D)  are limited to oral agreements. 
E)  are legally prohibited from establishing repayment dates and terms. 
A)  tend to be more expensive than other types of loans. 
B)  must be interest-free. 
C)  may create tension within the family. 
D)  are limited to oral agreements. 
E)  are legally prohibited from establishing repayment dates and terms.

Question 17

Which lender is likely to ask you to write a check for $115 before granting you a $100 loan?

Accepted Answer

A)  Credit union 
B)  Payday advance company 
C)  Finance company 
D)  Department store 
E)  Commercial bank 
A)  Credit union 
B)  Payday advance company 
C)  Finance company 
D)  Department store 
E)  Commercial bank

Question 18

Chuck Stallings qualifies for a credit card from J.C. Penney. Which of the following offers this type of loan?

Accepted Answer

A)  Credit union 
B)  Payday advance company 
C)  Finance company 
D)  Department store 
E)  Commercial bank 
A)  Credit union 
B)  Payday advance company 
C)  Finance company 
D)  Department store 
E)  Commercial bank

Question 19

Explain the Rule of 78s.

Accepted Answer

The answer of Explain the Rule of 78s....

Question 20

Float can be defined as:

Accepted Answer

A)  the interest charged during one billing period. 
B)  the principal balance due on a loan. 
C)  a home equity loan. 
D)  a period of time during which no interest is charged. 
E)  a lump-sum loan from a credit union. 
A)  the interest charged during one billing period. 
B)  the principal balance due on a loan. 
C)  a home equity loan. 
D)  a period of time during which no interest is charged. 
E)  a lump-sum loan from a credit union.

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

If your credit company invites you to skip a monthly payment without a penalty, they are doing you a favor.

With collateral, you will probably pay a higher interest rate on your loan than you would without collateral.

What can you do if you are unable to meet your credit obligations?

The CCCS sometimes charges a fee if it:

In addition to the Consumer Credit Counseling Service, universities, credit unions, military bases, and state and federal housing authorities sometimes provide credit counseling services.

The Consumer Credit Counseling Service will refinance all of your existing debts for you.

Chuck Spencer wants to borrow money for three years to purchase a new car. He has been offered a seven percent fixed rate loan and also a variable rate loan that has an initial rate of five percent. By choosing the variable rate loan, Chuck is reducing the lender's risk by:

Banks often encourage you to make the maximum payment.

The most expensive loans are available from:

Most people who are in debt over their heads are:

The Federal Trade Commission enforces the:

The finance charge is the total dollar amount you pay to use credit.

Which one of the following is not a danger signal of potential debt problems?

The rule of 78s formula dictates that you pay less interest at the beginning of a loan.

One of the drawbacks of borrowing from parents or family members is that such loans:

Which lender is likely to ask you to write a check for $115 before granting you a $100 loan?

Chuck Stallings qualifies for a credit card from J.C. Penney. Which of the following offers this type of loan?

Explain the Rule of 78s.

Float can be defined as:

Personal Finance Basics and the Time Value of Money

Financial Aspects of Career Planning

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

Financial Services: Savings Plans and Payment Accounts

Introduction to Consumer Credit

Consumer Purchasing Strategies and Legal Protection

The Housing Decision: Factors and Finances

Property and Motor Vehicle Insurance

Health, Disability, and Long-Term Care Insurance

Life Insurance

Investing Fundamentals

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Investing in Real Estate and Other Investment Alternatives

Starting Early: Retirement Planning

Estate Planning

Filters

Exam 7: Choosing a Source of Credit: The Costs of Credit Alternatives

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

If your credit company invites you to skip a monthly payment without a penalty, they are doing you a favor.

With collateral, you will probably pay a higher interest rate on your loan than you would without collateral.

What can you do if you are unable to meet your credit obligations?

The CCCS sometimes charges a fee if it:

In addition to the Consumer Credit Counseling Service, universities, credit unions, military bases, and state and federal housing authorities sometimes provide credit counseling services.

The Consumer Credit Counseling Service will refinance all of your existing debts for you.

Chuck Spencer wants to borrow money for three years to purchase a new car. He has been offered a seven percent fixed rate loan and also a variable rate loan that has an initial rate of five percent. By choosing the variable rate loan, Chuck is reducing the lender's risk by:

Banks often encourage you to make the maximum payment.

The most expensive loans are available from:

Most people who are in debt over their heads are:

The Federal Trade Commission enforces the:

The finance charge is the total dollar amount you pay to use credit.

Which one of the following is not a danger signal of potential debt problems?

The rule of 78s formula dictates that you pay less interest at the beginning of a loan.

One of the drawbacks of borrowing from parents or family members is that such loans:

Which lender is likely to ask you to write a check for $115 before granting you a $100 loan?

Chuck Stallings qualifies for a credit card from J.C. Penney. Which of the following offers this type of loan?

Explain the Rule of 78s.

Float can be defined as:

Personal Finance Basics and the Time Value of Money

Financial Aspects of Career Planning

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

Financial Services: Savings Plans and Payment Accounts

Introduction to Consumer Credit

Consumer Purchasing Strategies and Legal Protection

The Housing Decision: Factors and Finances

Property and Motor Vehicle Insurance

Health, Disability, and Long-Term Care Insurance

Life Insurance

Investing Fundamentals

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Investing in Real Estate and Other Investment Alternatives

Starting Early: Retirement Planning

Estate Planning

Filters