Question 1

The Rule of 78s demonstrates that a borrower pays:

Accepted Answer

A) more interest at the beginning of the loan period. 
B) more interest at the end of the loan period. 
C) more interest in the middle of the loan period. 
D) less interest than indicated by the APR. 
E) equal amounts of interest throughout the loan. 
A) more interest at the beginning of the loan period. 
B) more interest at the end of the loan period. 
C) more interest in the middle of the loan period. 
D) less interest than indicated by the APR. 
E) equal amounts of interest throughout the loan.

Question 2

The most basic method of calculating interest is the compound interest calculation.

Accepted Answer

A) True 
 B)False

Question 3

You can often obtain medium-priced loans from commercial banks,federal savings banks,and credit unions.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is not true regarding a tax refund loan?

Accepted Answer

A) It is an inexpensive way to borrow money. 
B) It lets you get an advance on a tax refund. 
C) APRs as high as 774 percent have been reported. 
D) An alternative to these loans is to ask for more time to pay a bill. 
E) A cash advance on your credit card may cost less. 
A) It is an inexpensive way to borrow money. 
B) It lets you get an advance on a tax refund. 
C) APRs as high as 774 percent have been reported. 
D) An alternative to these loans is to ask for more time to pay a bill. 
E) A cash advance on your credit card may cost less.

Question 5

Danger signals of potential debt problems include:

Accepted Answer

A) paying early. 
B) borrowing money to pay old debts. 
C) talking to your spouse about money. 
D) paying extra payments. 
E) paying the balance in full each month. 
A) paying early. 
B) borrowing money to pay old debts. 
C) talking to your spouse about money. 
D) paying extra payments. 
E) paying the balance in full each month.

Question 6

The Federal Trade Commission enforces the:

Accepted Answer

A) Truth in Credit Act. 
B) Equal Credit Act. 
C) Fair Credit Receiving Act. 
D) Fair Debt Collection Practices Act. 
E) Fair Credit Payment Act. 
A) Truth in Credit Act. 
B) Equal Credit Act. 
C) Fair Credit Receiving Act. 
D) Fair Debt Collection Practices Act. 
E) Fair Credit Payment Act.

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

Payday,cash advance,check advance,and postdated checks are _________ loans.

Accepted Answer

A) inexpensive 
B) medium-priced 
C) expensive 
D) low APR 
E) variable APR 
A) inexpensive 
B) medium-priced 
C) expensive 
D) low APR 
E) variable APR

Question 9

Jerrod Dean 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 adjusted balance method.What would Jerrod'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 your credit company invites you to skip a monthly payment without a penalty:

Accepted Answer

A) It is not doing you a favor. 
B) You will still owe finance charges on your unpaid balance. 
C) Interest could be adding up on any purchases you make after the due date you skipped. 
D) All of these are true. 
E) None of these are true. 
A) It is not doing you a favor. 
B) You will still owe finance charges on your unpaid balance. 
C) Interest could be adding up on any purchases you make after the due date you skipped. 
D) All of these are true. 
E) None of these are true.

Question 11

Frank West wants to borrow money for three years to purchase a new boat.He has been offered a seven percent fixed rate loan and also a variable rate loan that has an initial rate of five percent.By choosing the variable rate loan,Chuck is:

Accepted Answer

A) sharing the interest rate risk with the lender. 
B) increasing his monthly payments. 
C) taking a higher stake in the asset he is purchasing. 
D) repaying the loan over a faster period of time. 
E) pledging collateral. 
A) sharing the interest rate risk with the lender. 
B) increasing his monthly payments. 
C) taking a higher stake in the asset he is purchasing. 
D) repaying the loan over a faster period of time. 
E) pledging collateral.

Question 12

Explain the two choices available in declaring personal bankruptcy.

Accepted Answer

Chapter 7 is a straight bankruptcy,and C

Question 13

You have the right to file your own bankruptcy case and represent yourself at all court hearings.

Accepted Answer

A) True 
 B)False

Question 14

The most expensive loans are available from:

Accepted Answer

A) parents. 
B) friends. 
C) federal savings banks. 
D) finance companies. 
E) credit unions. 
A) parents. 
B) friends. 
C) federal savings banks. 
D) finance companies. 
E) credit unions.

Question 15

"Keeping up with the Joneses" is one of the frequent reasons for indebtedness.

Accepted Answer

A) True 
 B)False

Question 16

In a Chapter 7 bankruptcy,which of the following debts may be excluded from discharge?

Accepted Answer

A) debts arising from fraud. 
B) debts arising from embezzlement. 
C) debts arising from driving while intoxicated. 
D) debts arising from larceny. 
E) All of these. 
A) debts arising from fraud. 
B) debts arising from embezzlement. 
C) debts arising from driving while intoxicated. 
D) debts arising from larceny. 
E) All of these.

Question 17

Under the rule of 78s,loans for a year or less usually do not allow for a finance charge rebate.

Accepted Answer

A) True 
 B)False

Question 18

You can deduct the interest paid on consumer loans on your income tax return.

Accepted Answer

A) True 
 B)False

Question 19

You can often obtain medium-priced loans from:

Accepted Answer

A) parents or family members. 
B) American Express. 
C) Diners Club. 
D) finance companies. 
E) credit unions and federal savings banks. 
A) parents or family members. 
B) American Express. 
C) Diners Club. 
D) finance companies. 
E) credit unions and federal savings banks.

Question 20

The two most common methods of calculating interest are compound and simple interest formulas.

Accepted Answer

A) True 
 B)False

The Rule of 78s demonstrates that a borrower pays:

The most basic method of calculating interest is the compound interest calculation.

You can often obtain medium-priced loans from commercial banks,federal savings banks,and credit unions.

Which of the following is not true regarding a tax refund loan?

Danger signals of potential debt problems include:

The Federal Trade Commission enforces the:

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

Payday,cash advance,check advance,and postdated checks are _________ loans.

If your credit company invites you to skip a monthly payment without a penalty:

Frank West wants to borrow money for three years to purchase a new boat.He has been offered a seven percent fixed rate loan and also a variable rate loan that has an initial rate of five percent.By choosing the variable rate loan,Chuck is:

Explain the two choices available in declaring personal bankruptcy.

You have the right to file your own bankruptcy case and represent yourself at all court hearings.

The most expensive loans are available from:

"Keeping up with the Joneses" is one of the frequent reasons for indebtedness.

In a Chapter 7 bankruptcy,which of the following debts may be excluded from discharge?

Under the rule of 78s,loans for a year or less usually do not allow for a finance charge rebate.

You can deduct the interest paid on consumer loans on your income tax return.

You can often obtain medium-priced loans from:

The two most common methods of calculating interest are compound and simple interest formulas.

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

The Rule of 78s demonstrates that a borrower pays:

The most basic method of calculating interest is the compound interest calculation.

You can often obtain medium-priced loans from commercial banks,federal savings banks,and credit unions.

Which of the following is not true regarding a tax refund loan?

Danger signals of potential debt problems include:

The Federal Trade Commission enforces the:

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

Payday,cash advance,check advance,and postdated checks are _________ loans.

If your credit company invites you to skip a monthly payment without a penalty:

Frank West wants to borrow money for three years to purchase a new boat.He has been offered a seven percent fixed rate loan and also a variable rate loan that has an initial rate of five percent.By choosing the variable rate loan,Chuck is:

Explain the two choices available in declaring personal bankruptcy.

You have the right to file your own bankruptcy case and represent yourself at all court hearings.

The most expensive loans are available from:

"Keeping up with the Joneses" is one of the frequent reasons for indebtedness.

In a Chapter 7 bankruptcy,which of the following debts may be excluded from discharge?

Under the rule of 78s,loans for a year or less usually do not allow for a finance charge rebate.

You can deduct the interest paid on consumer loans on your income tax return.

You can often obtain medium-priced loans from:

The two most common methods of calculating interest are compound and simple interest formulas.

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