Question 1

You can borrow,repay,and reborrow from a home equity loan in the same way as you can from a home equity credit line.

Accepted Answer

A) True 
 B)False

Question 2

If the add-on method is used to calculate a finance charge of $100.80 on a $1,800 loan,the amount to be ____________. ​

Accepted Answer

A) disbursed is $1,900.80 
B) disbursed to the borrower is $1,800 
C) repaid is $1,699.20 
D) repaid to the borrower is $1,800 
A) disbursed is $1,900.80 
B) disbursed to the borrower is $1,800 
C) repaid is $1,699.20 
D) repaid to the borrower is $1,800

Question 3

A loan rollover means that:

Accepted Answer

A) the loan is paid off by taking out another loan. 
B) the loan is repaid without any defaults in payments. 
C) the interest on the new loan is lower than the previous loan. 
D) the maturity period of the new loan is longer than the maturity period of the original loan. 
E) the new loan will not have any processing fees. 
A) the loan is paid off by taking out another loan. 
B) the loan is repaid without any defaults in payments. 
C) the interest on the new loan is lower than the previous loan. 
D) the maturity period of the new loan is longer than the maturity period of the original loan. 
E) the new loan will not have any processing fees.

Question 4

A single-payment loan:

Accepted Answer

A) is generally unsecured and does not have any collateral. 
B) usually matures in one year or less. 
C) is usually provided by retailers. 
D) is generally used to finance auto purchases. 
E) is provided by sales finance companies. 
A) is generally unsecured and does not have any collateral. 
B) usually matures in one year or less. 
C) is usually provided by retailers. 
D) is generally used to finance auto purchases. 
E) is provided by sales finance companies.

Question 5

Most consumer loans are made at fixed rates of interest-that is,the interest rate charged and the monthly payments remain the same over the life of the obligation.

Accepted Answer

A) True 
 B)False

You can borrow,repay,and reborrow from a home equity loan in the same way as you can from a home equity credit line.

If the add-on method is used to calculate a finance charge of $100.80 on a $1,800 loan,the amount to be ____________.

A loan rollover means that:

A single-payment loan:

Most consumer loans are made at fixed rates of interest-that is,the interest rate charged and the monthly payments remain the same over the life of the obligation.

Understanding the Financial Planning Process

Using Financial Statements and Budgets

Preparing Your Taxes

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Credit

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds, ETFS and Real Estate

Planning for Retirement

Preserving Your Estate

Filters

Exam 7: Using Consumer Loans

You can borrow,repay,and reborrow from a home equity loan in the same way as you can from a home equity credit line.

If the add-on method is used to calculate a finance charge of $100.80 on a $1,800 loan,the amount to be ____________. ​

A loan rollover means that:

A single-payment loan:

Most consumer loans are made at fixed rates of interest-that is,the interest rate charged and the monthly payments remain the same over the life of the obligation.

Understanding the Financial Planning Process

Using Financial Statements and Budgets

Preparing Your Taxes

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Credit

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds, ETFS and Real Estate

Planning for Retirement

Preserving Your Estate

Filters

If the add-on method is used to calculate a finance charge of $100.80 on a $1,800 loan,the amount to be ____________.