Question 1

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 2

Excessive indebtedness can result in:

Accepted Answer

A)  heavy drinking. 
B)  a neglect of children. 
C)  marital problems. 
D)  drug abuse. 
E)  Almost any bad stress-induced behavior could be a result of excessive indebtedness, including all of these behaviors. 
A)  heavy drinking. 
B)  a neglect of children. 
C)  marital problems. 
D)  drug abuse. 
E)  Almost any bad stress-induced behavior could be a result of excessive indebtedness, including all of these behaviors.

Question 3

After you have selected a product, you should buy it immediately before the store runs out of it.

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

Jerry Allison starts the month with a balance on his credit card of $1,000. On the 10th day of the month, he purchases $200 in clothes with his credit card. On the 15th day of the month he makes a payment on his credit card of $500. The bank charges 1.5 percent interest per month using the previous balance method. What would Jerry's finance charges be for the month?

Accepted Answer

A)  $7.50 
B)  $13.25 
C)  $11.25 
D)  $15.00 
E)  $18.00 
A)  $7.50 
B)  $13.25 
C)  $11.25 
D)  $15.00 
E)  $18.00

Question 6

What are two key concepts to keep in mind as you shop for credit?

Accepted Answer

When shopping for credit, whether it's a

Question 7

In what ways can you lower the risk to your lender in order to reduce your borrowing costs?

Accepted Answer

The answer of In what ways can you lower the...

Question 8

If you want to take advantage of the interest-free period on your credit card, you must pay your bill in full every month.

Accepted Answer

A) True 
 B)False

Question 9

In a Chapter 13 bankruptcy, the debtor normally keeps all or most of his or her property.

Accepted Answer

A) True 
 B)False

Question 10

Steve Black has two children. He is buying each of them their own TV to put in their rooms so they do not have to join the rest of the family and watch TV together. Which one of the answers best explains Gary's spending?

Accepted Answer

A)  Misunderstanding or lack of communication 
B)  The use of money to punish 
C)  The expectation of instant comfort 
D)  Keeping up with the Joneses 
E)  Overindulgence of children 
A)  Misunderstanding or lack of communication 
B)  The use of money to punish 
C)  The expectation of instant comfort 
D)  Keeping up with the Joneses 
E)  Overindulgence of children

Question 11

The CCCS aids 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 12

Anthony Newton wants to buy a new sail boat. He makes a down payment of $10,000 which represents 20% of the value of the sail boat he is purchasing. In which way is Anthony reducing his lender's risk?

Accepted Answer

A)  He is sharing the interest rate risk with his lender. 
B)  He is pledging valuable assets that can be seized if the loan is not repaid. 
C)  He is taking a larger stake in the asset he is purchasing. 
D)  He is repaying the loan over a faster period of time. 
E)  None of these. 
A)  He is sharing the interest rate risk with his lender. 
B)  He is pledging valuable assets that can be seized if the loan is not repaid. 
C)  He is taking a larger stake in the asset he is purchasing. 
D)  He is repaying the loan over a faster period of time. 
E)  None of these.

Question 13

When more than one payment is made on a simple interest loan, the method of computing interest is known as the declining balance method.

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

If you want to reduce your borrowing costs, you may need to accept conditions that lower the risk for your lender.

Accepted Answer

A) True 
 B)False

Question 16

Buying on credit is almost always cheaper than paying cash.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following lenders is most likely to be sympathetic about legitimate payment problems?

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

An increasing number of personal bankruptcy filers are baby boomers, who now account for what percent of bankruptcies?

Accepted Answer

A)  10 
B)  20 
C)  35 
D)  50 
E)  60 
A)  10 
B)  20 
C)  35 
D)  50 
E)  60

Question 19

If creditors give you no credit for payments made during the billing period, it is called the adjusted balance method.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is not true about the Credit CARD Act of 2009?

Accepted Answer

A)  States that teaser rates must be in effect for at least 6 months 
B)  Makes new disclosure statements clear and more timely 
C)  Requires card issuers to post their standard card agreements on the Internet 
D)  Allows card issuers to apply new (higher) interest rates to the existing card balances 
E)  Requires issuers to mail monthly statements at least 21 days before payment is due 
A)  States that teaser rates must be in effect for at least 6 months 
B)  Makes new disclosure statements clear and more timely 
C)  Requires card issuers to post their standard card agreements on the Internet 
D)  Allows card issuers to apply new (higher) interest rates to the existing card balances 
E)  Requires issuers to mail monthly statements at least 21 days before payment is due

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

Excessive indebtedness can result in:

After you have selected a product, you should buy it immediately before the store runs out of it.

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

What are two key concepts to keep in mind as you shop for credit?

In what ways can you lower the risk to your lender in order to reduce your borrowing costs?

If you want to take advantage of the interest-free period on your credit card, you must pay your bill in full every month.

In a Chapter 13 bankruptcy, the debtor normally keeps all or most of his or her property.

Steve Black has two children. He is buying each of them their own TV to put in their rooms so they do not have to join the rest of the family and watch TV together. Which one of the answers best explains Gary's spending?

The CCCS aids families by:

Anthony Newton wants to buy a new sail boat. He makes a down payment of $10,000 which represents 20% of the value of the sail boat he is purchasing. In which way is Anthony reducing his lender's risk?

When more than one payment is made on a simple interest loan, the method of computing interest is known as the declining balance method.

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

If you want to reduce your borrowing costs, you may need to accept conditions that lower the risk for your lender.

Buying on credit is almost always cheaper than paying cash.

Which of the following lenders is most likely to be sympathetic about legitimate payment problems?

An increasing number of personal bankruptcy filers are baby boomers, who now account for what percent of bankruptcies?

If creditors give you no credit for payments made during the billing period, it is called the adjusted balance method.

Which of the following is not true about the Credit CARD Act of 2009?

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

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

Excessive indebtedness can result in:

After you have selected a product, you should buy it immediately before the store runs out of it.

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

What are two key concepts to keep in mind as you shop for credit?

In what ways can you lower the risk to your lender in order to reduce your borrowing costs?

If you want to take advantage of the interest-free period on your credit card, you must pay your bill in full every month.

In a Chapter 13 bankruptcy, the debtor normally keeps all or most of his or her property.

Steve Black has two children. He is buying each of them their own TV to put in their rooms so they do not have to join the rest of the family and watch TV together. Which one of the answers best explains Gary's spending?

The CCCS aids families by:

Anthony Newton wants to buy a new sail boat. He makes a down payment of $10,000 which represents 20% of the value of the sail boat he is purchasing. In which way is Anthony reducing his lender's risk?

When more than one payment is made on a simple interest loan, the method of computing interest is known as the declining balance method.

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

If you want to reduce your borrowing costs, you may need to accept conditions that lower the risk for your lender.

Buying on credit is almost always cheaper than paying cash.

Which of the following lenders is most likely to be sympathetic about legitimate payment problems?

An increasing number of personal bankruptcy filers are baby boomers, who now account for what percent of bankruptcies?

If creditors give you no credit for payments made during the billing period, it is called the adjusted balance method.

Which of the following is not true about the Credit CARD Act of 2009?

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