Question 1

In addition to the Consumer Credit Counseling Service (CCCS), the following entities also provide counseling services:

Accepted Answer

A)  Universities 
B)  Credit unions 
C)  Military bases 
D)  State and federal housing authorities 
E)  All of these 
A)  Universities 
B)  Credit unions 
C)  Military bases 
D)  State and federal housing authorities 
E)  All of these

Question 2

Which federal law, passed in 1969, requires creditors to state the cost of borrowing in common language?

Accepted Answer

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

Question 3

Chapter 7 bankruptcy is also known as straight bankruptcy.

Accepted Answer

A) True 
 B)False

Question 4

Anyone overburdened by credit obligations can phone, write, or visit a Consumer Credit Counseling Service office.

Accepted Answer

A) True 
 B)False

Question 5

This morning, you received a phone call regarding a debt you allegedly owe. If you dispute this debt, you must write to the debt collector and request verification of the obligation. How many days do you have to send this letter?

Accepted Answer

A)  5 
B)  10 
C)  15 
D)  20 
E)  30 
A)  5 
B)  10 
C)  15 
D)  20 
E)  30

Question 6

Which one of the following financing methods provides a float period?

Accepted Answer

A)  Installment loan 
B)  Credit card 
C)  Lump-sum loan 
D)  Home equity line of credit 
E)  Auto loan 
A)  Installment loan 
B)  Credit card 
C)  Lump-sum loan 
D)  Home equity line of credit 
E)  Auto loan

Question 7

Explain choices available in declaring bankruptcy.

Accepted Answer

When declaring bankruptcy, individuals h

Question 8

Which one of the following is often the source of the least expensive loan?

Accepted Answer

A)  Parents or family members 
B)  Banks 
C)  Savings and loan associations 
D)  Finance companies 
E)  Loan sharks 
A)  Parents or family members 
B)  Banks 
C)  Savings and loan associations 
D)  Finance companies 
E)  Loan sharks

Question 9

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 10

The CCCS is primarily concerned with:

Accepted Answer

A)  lending money to destitute people. 
B)  giving debtors food and shelter. 
C)  helping destitute debtors to relocate into less expensive areas. 
D)  preventing and solving the problems related to credit overextension. 
E)  paying off mortgage loans. 
A)  lending money to destitute people. 
B)  giving debtors food and shelter. 
C)  helping destitute debtors to relocate into less expensive areas. 
D)  preventing and solving the problems related to credit overextension. 
E)  paying off mortgage loans.

Question 11

Sarah Parker's husband goes out with the 'boys' for a night on the town and gets home at 4 am waking everyone in the house. In response, Sarah goes out the next day and spends $500 in new clothes for herself putting it all on her credit card. Which one of the answers best explains Sarah'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 12

Which formula dictates that you pay more interest at the beginning of the loan and pay less and less interest as the debt is reduced?

Accepted Answer

A)  Adjusted balance method 
B)  Previous balance method 
C)  The rule of 78s 
D)  Average daily balance 
E)  Accelerated balance 
A)  Adjusted balance method 
B)  Previous balance method 
C)  The rule of 78s 
D)  Average daily balance 
E)  Accelerated balance

Question 13

What are the major sources of consumer credit?

Accepted Answer

The answer of What are the major sources of consumer...

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

Collection agencies are allowed to:

Accepted Answer

A)  contact you at your place of employment. 
B)  contact you as early as 8 am. 
C)  say that you will be arrested if you don't pay the debt. 
D)  harass you. 
E)  threaten harm to you or your family. 
A)  contact you at your place of employment. 
B)  contact you as early as 8 am. 
C)  say that you will be arrested if you don't pay the debt. 
D)  harass you. 
E)  threaten harm to you or your family.

Question 16

The total dollar amount you pay to use credit is called the:

Accepted Answer

A)  finance charge. 
B)  annual percentage rate. 
C)  price of the good/service purchased. 
D)  amortized rebate. 
E)  interest rate. 
A)  finance charge. 
B)  annual percentage rate. 
C)  price of the good/service purchased. 
D)  amortized rebate. 
E)  interest rate.

In addition to the Consumer Credit Counseling Service (CCCS), the following entities also provide counseling services:

Which federal law, passed in 1969, requires creditors to state the cost of borrowing in common language?

Chapter 7 bankruptcy is also known as straight bankruptcy.

Anyone overburdened by credit obligations can phone, write, or visit a Consumer Credit Counseling Service office.

This morning, you received a phone call regarding a debt you allegedly owe. If you dispute this debt, you must write to the debt collector and request verification of the obligation. How many days do you have to send this letter?

Which one of the following financing methods provides a float period?

Explain choices available in declaring bankruptcy.

Which one of the following is often the source of the least expensive loan?

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

The CCCS is primarily concerned with:

Sarah Parker's husband goes out with the 'boys' for a night on the town and gets home at 4 am waking everyone in the house. In response, Sarah goes out the next day and spends $500 in new clothes for herself putting it all on her credit card. Which one of the answers best explains Sarah's spending?

Which formula dictates that you pay more interest at the beginning of the loan and pay less and less interest as the debt is reduced?

What are the major sources of consumer credit?

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

Collection agencies are allowed to:

The total dollar amount you pay to use credit is called the:

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

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

In addition to the Consumer Credit Counseling Service (CCCS), the following entities also provide counseling services:

Which federal law, passed in 1969, requires creditors to state the cost of borrowing in common language?

Chapter 7 bankruptcy is also known as straight bankruptcy.

Anyone overburdened by credit obligations can phone, write, or visit a Consumer Credit Counseling Service office.

This morning, you received a phone call regarding a debt you allegedly owe. If you dispute this debt, you must write to the debt collector and request verification of the obligation. How many days do you have to send this letter?

Which one of the following financing methods provides a float period?

Explain choices available in declaring bankruptcy.

Which one of the following is often the source of the least expensive loan?

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

The CCCS is primarily concerned with:

Sarah Parker's husband goes out with the 'boys' for a night on the town and gets home at 4 am waking everyone in the house. In response, Sarah goes out the next day and spends $500 in new clothes for herself putting it all on her credit card. Which one of the answers best explains Sarah's spending?

Which formula dictates that you pay more interest at the beginning of the loan and pay less and less interest as the debt is reduced?

What are the major sources of consumer credit?

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

Collection agencies are allowed to:

The total dollar amount you pay to use credit is called the:

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