Question 1

Which of the following is not true of CCCS counseling?

Accepted Answer

A) usually free. 
B) quite costly. 
C) often provides education regarding the pitfalls of unwise credit buying. 
D) suggests techniques for family budgeting. 
E) helps families manage their money better. 
A) usually free. 
B) quite costly. 
C) often provides education regarding the pitfalls of unwise credit buying. 
D) suggests techniques for family budgeting. 
E) helps families manage their money better.

Question 2

Credit counselors are aware that 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 3

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.

Question 4

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) can complicate family relationships. 
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) can complicate family relationships. 
D) are limited to oral agreements. 
E) are legally prohibited from establishing repayment dates and terms.

Question 5

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

Question 6

The Truth in Lending law does not set the interest rates or tell the creditor how to make interest calculations.

Accepted Answer

A) True 
 B)False

Question 7

If Marjorie Wilcox borrows $200 for one year with an APR of 12% and an annual service fee of $10,what is her total cost of credit?

Accepted Answer

A) $10 
B) $12 
C) $24 
D) $34 
E) $42 
A) $10 
B) $12 
C) $24 
D) $34 
E) $42

Question 8

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

Accepted Answer

A) States that teaser rates must stay in effect for at least 6 months 
B) Makes new disclosure statements clear and more timely 
C) Requires credit 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 stay in effect for at least 6 months 
B) Makes new disclosure statements clear and more timely 
C) Requires credit 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

Question 9

Randy Ice 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 average daily balance for the month including the new purchase is $883.The average daily balance for the month excluding the new purchase is $750.The bank charges 1.5 percent per month and uses the average daily balance excluding new purchases method.What would Randy'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 10

If you receive a phone call from a debt collector,s/he must send you a written notice within ____________ days.

Accepted Answer

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

Question 11

There are no costs involved in filing for a bankruptcy.

Accepted Answer

A) True 
 B)False

Question 12

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 13

According to consumer affairs experts,the nation's number one family financial problem is:

Accepted Answer

A) poor money management. 
B) overindebtedness. 
C) medical costs. 
D) insurance costs. 
E) unemployment. 
A) poor money management. 
B) overindebtedness. 
C) medical costs. 
D) insurance costs. 
E) unemployment.

Question 14

For some debtors,bankruptcy had become an acceptable tool of credit management based on the number of declared bankruptcies in 2005.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

Shelly Sanders gets a loan for $3,000 and repays the loan in 12 monthly payments of $258 per month.Under the rule of 78s,what is the amount of interest included in her first payment?

Accepted Answer

A) $16.00 
B) $14.77 
C) $8.96 
D) $4.87 
E) $1.23 
A) $16.00 
B) $14.77 
C) $8.96 
D) $4.87 
E) $1.23

Question 17

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 18

What is the most common reason why consumers are unable to pay their bills on time?

Accepted Answer

A) Medical expenses 
B) Defective goods and services 
C) Excessive use of credit 
D) Fraudulent use of credit 
E) Consumer fraud 
A) Medical expenses 
B) Defective goods and services 
C) Excessive use of credit 
D) Fraudulent use of credit 
E) Consumer fraud

Question 19

Which type of credit insurance repays your debt in the event of a loss of income due to illness or injury?

Accepted Answer

A) Credit life insurance 
B) Credit accident and health insurance 
C) Credit property insurance 
D) Credit casualty insurance 
E) Credit inability insurance 
A) Credit life insurance 
B) Credit accident and health insurance 
C) Credit property insurance 
D) Credit casualty insurance 
E) Credit inability insurance

Question 20

Anthony Newton wants to buy a new sail boat.He is planning on making a $10,000 cash down payment,which is a large portion of the cost of what he is financing.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 higher 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 higher stake in the asset he is purchasing. 
D) He is repaying the loan over a faster period of time. 
E) None of these.

Which of the following is not true of CCCS counseling?

Credit counselors are aware that most people who are in debt over their heads are:

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

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?

The Truth in Lending law does not set the interest rates or tell the creditor how to make interest calculations.

If Marjorie Wilcox borrows $200 for one year with an APR of 12% and an annual service fee of $10,what is her total cost of credit?

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

If you receive a phone call from a debt collector,s/he must send you a written notice within ____________ days.

There are no costs involved in filing for a bankruptcy.

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

According to consumer affairs experts,the nation's number one family financial problem is:

For some debtors,bankruptcy had become an acceptable tool of credit management based on the number of declared bankruptcies in 2005.

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

Shelly Sanders gets a loan for $3,000 and repays the loan in 12 monthly payments of $258 per month.Under the rule of 78s,what is the amount of interest included in her first payment?

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

What is the most common reason why consumers are unable to pay their bills on time?

Which type of credit insurance repays your debt in the event of a loss of income due to illness or injury?

Anthony Newton wants to buy a new sail boat.He is planning on making a $10,000 cash down payment,which is a large portion of the cost of what he is financing.In which way is Anthony reducing his lender's risk?

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

Which of the following is not true of CCCS counseling?

Credit counselors are aware that most people who are in debt over their heads are:

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

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?

The Truth in Lending law does not set the interest rates or tell the creditor how to make interest calculations.

If Marjorie Wilcox borrows $200 for one year with an APR of 12% and an annual service fee of $10,what is her total cost of credit?

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

If you receive a phone call from a debt collector,s/he must send you a written notice within ____________ days.

There are no costs involved in filing for a bankruptcy.

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

According to consumer affairs experts,the nation's number one family financial problem is:

For some debtors,bankruptcy had become an acceptable tool of credit management based on the number of declared bankruptcies in 2005.

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

Shelly Sanders gets a loan for $3,000 and repays the loan in 12 monthly payments of $258 per month.Under the rule of 78s,what is the amount of interest included in her first payment?

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

What is the most common reason why consumers are unable to pay their bills on time?

Which type of credit insurance repays your debt in the event of a loss of income due to illness or injury?

Anthony Newton wants to buy a new sail boat.He is planning on making a $10,000 cash down payment,which is a large portion of the cost of what he is financing.In which way is Anthony reducing his lender's risk?

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