Question 1

Credit life insurance provides for the repayment of the insured loan if the borrower dies.

Accepted Answer

A) True 
 B)False

Question 2

Henry Garrison starts the month with a balance on his credit card of $1,000.The average daily balance for the month including purchase is $883.The average daily balance for the month excluding new purchase is $750.The bank charges 1.5 percent per month and uses the average daily balance including new purchases method.What would Henry'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 3

There are no costs involved in filing for a bankruptcy.

Accepted Answer

A) True 
 B)False

Question 4

Overindulgence of children is a signal of potential debt problems.

Accepted Answer

A) True 
 B)False

Question 5

Credit unions rarely offer the same range of consumer loans that banks and other financial institutions do.

Accepted Answer

A) True 
 B)False

Question 6

Anthony Newton wants to buy a new sail boat.He makes a down payment of $10,000 which represents 20% of the value of the sail boat he is purchasing.In which way is James 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 larger stake in the asset he is purchasing. 
D) He is repaying the loan over a faster period of time. 
E) None of the other answers. 
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 larger stake in the asset he is purchasing. 
D) He is repaying the loan over a faster period of time. 
E) None of the other answers.

Question 7

The fairest method of calculating interest is the average daily balance method.

Accepted Answer

A) True 
 B)False

Question 8

There is never a charge for any service provided by a Consumer Credit Counseling Service office.

Accepted Answer

A) True 
 B)False

Question 9

For some debtors,bankruptcy has become an acceptable tool of credit management.

Accepted Answer

A) True 
 B)False

Question 10

When more than one payment is made on a simple interest loan,the method of computing interest is known as the declining balance method.

Accepted Answer

A) True 
 B)False

Question 11

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 the organizations listed. 
A) Universities. 
B) Military bases. 
C) Credit unions. 
D) State and federal authorities. 
E) All of the organizations listed.

Question 12

A few months ago,you sent a certified letter to a debt collector and requested verification of a debt the collector says you owe.You know the letter was received by the collector but you have received no response to your request.Today,you received a letter threatening court action.What should you do?

Accepted Answer

A) pay the debt and protect your credit rating 
B) insist that communications about the debt cease 
C) renegotiate payment terms with the creditor 
D) sue the collection agency 
E) pay half the outstanding balance 
A) pay the debt and protect your credit rating 
B) insist that communications about the debt cease 
C) renegotiate payment terms with the creditor 
D) sue the collection agency 
E) pay half the outstanding balance

Question 13

Parents or family members are often the source of the least expensive loans.

Accepted Answer

A) True 
 B)False

Question 14

Explain the concept of "float."

Accepted Answer

The answer of Explain the concept of "float."...

Question 15

What are two key concepts to keep in mind as you shop for credit?

Accepted Answer

When shopping for credit, whether it's a

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

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 18

The average U.S.household has ______ credit cards.

Accepted Answer

A) 3 
B) 5 
C) 7 
D) 9 
E) 12 
A) 3 
B) 5 
C) 7 
D) 9 
E) 12

Question 19

Explain simple interest.

Accepted Answer

The answer of Explain simple interest....

Question 20

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.

Credit life insurance provides for the repayment of the insured loan if the borrower dies.

There are no costs involved in filing for a bankruptcy.

Overindulgence of children is a signal of potential debt problems.

Credit unions rarely offer the same range of consumer loans that banks and other financial institutions do.

Anthony Newton wants to buy a new sail boat.He makes a down payment of $10,000 which represents 20% of the value of the sail boat he is purchasing.In which way is James reducing his lender's risk:

The fairest method of calculating interest is the average daily balance method.

There is never a charge for any service provided by a Consumer Credit Counseling Service office.

For some debtors,bankruptcy has become an acceptable tool of credit management.

When more than one payment is made on a simple interest loan,the method of computing interest is known as the declining balance method.

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

Parents or family members are often the source of the least expensive loans.

Explain the concept of "float."

What are two key concepts to keep in mind as you shop for credit?

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

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

The average U.S.household has ______ credit cards.

Explain simple interest.

Most people who are in debt over their heads are:

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

Credit life insurance provides for the repayment of the insured loan if the borrower dies.

There are no costs involved in filing for a bankruptcy.

Overindulgence of children is a signal of potential debt problems.

Credit unions rarely offer the same range of consumer loans that banks and other financial institutions do.

Anthony Newton wants to buy a new sail boat.He makes a down payment of $10,000 which represents 20% of the value of the sail boat he is purchasing.In which way is James reducing his lender's risk:

The fairest method of calculating interest is the average daily balance method.

There is never a charge for any service provided by a Consumer Credit Counseling Service office.

For some debtors,bankruptcy has become an acceptable tool of credit management.

When more than one payment is made on a simple interest loan,the method of computing interest is known as the declining balance method.

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

Parents or family members are often the source of the least expensive loans.

Explain the concept of "float."

What are two key concepts to keep in mind as you shop for credit?

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

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

The average U.S.household has ______ credit cards.

Explain simple interest.

Most people who are in debt over their heads are:

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