Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

Which form of bankruptcy allows a debtor with a regular income to extinguish his or her debts from future earnings or other property over a period of time?

Accepted Answer

A) Chapter 7 
B) Chapter 11 
C) Chapter 13 
D) Chapter 15 
E) Chapter 17 
A) Chapter 7 
B) Chapter 11 
C) Chapter 13 
D) Chapter 15 
E) Chapter 17

Question 3

Which of the following financially supports the Consumer Credit Counseling Service?

Accepted Answer

A) National Foundation for Consumer Credit 
B) Community-minded organizations and individuals 
C) Federal Reserve Banks 
D) The Federal Home Loan Bank 
E) Taxpayers 
A) National Foundation for Consumer Credit 
B) Community-minded organizations and individuals 
C) Federal Reserve Banks 
D) The Federal Home Loan Bank 
E) Taxpayers

Question 4

According to Fair Isaac Corporation,a personal bankruptcy can cause an immediate drop in your credit score of how many points?

Accepted Answer

A) 100 
B) 150 
C) 180 
D) 210 
E) 260 
A) 100 
B) 150 
C) 180 
D) 210 
E) 260

Question 5

The Consumer Credit Counseling Service is affiliated with the:

Accepted Answer

A) National Foundation for Consumer Credit. 
B) Federal Trade Commission. 
C) Better Business Bureau. 
D) U.S.Consumer Protection Agency. 
E) Federal Reserve Banks. 
A) National Foundation for Consumer Credit. 
B) Federal Trade Commission. 
C) Better Business Bureau. 
D) U.S.Consumer Protection Agency. 
E) Federal Reserve Banks.

Question 6

The Consumer Credit Counseling Service is supported by contributions from:

Accepted Answer

A) banks. 
B) consumer finance companies. 
C) credit unions. 
D) merchants. 
E) All of these 
A) banks. 
B) consumer finance companies. 
C) credit unions. 
D) merchants. 
E) All of these

Question 7

Which of the following lenders is generally sympathetic to borrowers with 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 8

In addition to the counseling services of the CCCS,nonprofit services are sometimes provided by:

Accepted Answer

A) universities. 
B) military bases. 
C) credit unions. 
D) state and federal authorities. 
E) All of these. 
A) universities. 
B) military bases. 
C) credit unions. 
D) state and federal authorities. 
E) All of these.

Question 9

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 10

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

Accepted Answer

One can take one or more of the followin

Question 11

The Fair Debt Collection Practices Act regulates the ways debt collection agencies do business.

Accepted Answer

A) True 
 B)False

Question 12

Patricia Newton is going to buy a new car,and she needs to apply for a loan to cover the purchase.She knows she can get a loan for up to 6 years,but she would prefer a shorter-term loan.She selects a 4-year loan.Patricia is lowering her lender's risk by:

Accepted Answer

A) sharing the interest rate risk. 
B) pledging collateral. 
C) paying a larger cash deposit. 
D) repaying the loan faster. 
E) sharing inflation risk with her lender. 
A) sharing the interest rate risk. 
B) pledging collateral. 
C) paying a larger cash deposit. 
D) repaying the loan faster. 
E) sharing inflation risk with her lender.

Question 13

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

Question 14

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 following best explains Gary's spending,which can lead to overindebtedness?

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 15

With the add-on interest method,interest is calculated on the full amount of the original principal.

Accepted Answer

A) True 
 B)False

Question 16

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 17

Explain the concept of "float."

Accepted Answer

Float refers to a certain number of days

Question 18

The number of credit union members has been:

Accepted Answer

A) growing steadily. 
B) declining gradually. 
C) static. 
D) restricted by the Tax Reform Act of 1986. 
E) restricted by state laws. 
A) growing steadily. 
B) declining gradually. 
C) static. 
D) restricted by the Tax Reform Act of 1986. 
E) restricted by state laws.

Question 19

The finance charge may include which of the following:

Accepted Answer

A) Interest costs 
B) Service charges 
C) Credit-related insurance premiums 
D) Appraisal fees 
E) All of these 
A) Interest costs 
B) Service charges 
C) Credit-related insurance premiums 
D) Appraisal fees 
E) All of these

Question 20

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 second or third payment notices from creditors 
C) Using savings to pay routine bills 
D) Repaying loans faster than required 
E) Depending on overtime and moonlighting to meet everyday expenses 
A) Paying the minimum balance due each month 
B) Receiving second or third payment notices from creditors 
C) Using savings to pay routine bills 
D) Repaying loans faster than required 
E) Depending on overtime and moonlighting to meet everyday expenses

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

Which form of bankruptcy allows a debtor with a regular income to extinguish his or her debts from future earnings or other property over a period of time?

Which of the following financially supports the Consumer Credit Counseling Service?

According to Fair Isaac Corporation,a personal bankruptcy can cause an immediate drop in your credit score of how many points?

The Consumer Credit Counseling Service is affiliated with the:

The Consumer Credit Counseling Service is supported by contributions from:

Which of the following lenders is generally sympathetic to borrowers with legitimate payment problems?

In addition to the counseling services of the CCCS,nonprofit services are sometimes provided by:

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

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

The Fair Debt Collection Practices Act regulates the ways debt collection agencies do business.

Patricia Newton is going to buy a new car,and she needs to apply for a loan to cover the purchase.She knows she can get a loan for up to 6 years,but she would prefer a shorter-term loan.She selects a 4-year loan.Patricia is lowering her lender's risk by:

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

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 following best explains Gary's spending,which can lead to overindebtedness?

With the add-on interest method,interest is calculated on the full amount of the original principal.

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

Explain the concept of "float."

The number of credit union members has been:

The finance charge may include which of the following:

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

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 Stock

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

Which form of bankruptcy allows a debtor with a regular income to extinguish his or her debts from future earnings or other property over a period of time?

Which of the following financially supports the Consumer Credit Counseling Service?

According to Fair Isaac Corporation,a personal bankruptcy can cause an immediate drop in your credit score of how many points?

The Consumer Credit Counseling Service is affiliated with the:

The Consumer Credit Counseling Service is supported by contributions from:

Which of the following lenders is generally sympathetic to borrowers with legitimate payment problems?

In addition to the counseling services of the CCCS,nonprofit services are sometimes provided by:

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

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

The Fair Debt Collection Practices Act regulates the ways debt collection agencies do business.

Patricia Newton is going to buy a new car,and she needs to apply for a loan to cover the purchase.She knows she can get a loan for up to 6 years,but she would prefer a shorter-term loan.She selects a 4-year loan.Patricia is lowering her lender's risk by:

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

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 following best explains Gary's spending,which can lead to overindebtedness?

With the add-on interest method,interest is calculated on the full amount of the original principal.

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

Explain the concept of "float."

The number of credit union members has been:

The finance charge may include which of the following:

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

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 Stock

Investing in Bonds

Investing in Mutual Funds

Investing in Real Estate and Other Investment Alternatives

Starting Early: Retirement Planning

Estate Planning

Filters