Question 1

What is the number one reason why consumers default on their debts?

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 2

A person filing for relief under the bankruptcy code is called a bankrupt,not a debtor.

Accepted Answer

A) True 
 B)False

Question 3

You just received your credit card statement.Which of the following are included on that statement?

Accepted Answer

A) annual fee 
B) annual percentage rate for purchases 
C) penalty fees 
D) method used to calculate balance 
E) all of the above answers 
A) annual fee 
B) annual percentage rate for purchases 
C) penalty fees 
D) method used to calculate balance 
E) all of the above answers

Question 4

With collateral,you will probably pay a higher interest rate on your loan than you would without collateral.

Accepted Answer

A) True 
 B)False

Question 5

If you find that you cannot make your payments,the first thing you should do is:

Accepted Answer

A) skip town. 
B) declare personal bankruptcy. 
C) borrow from a loan shark to make the payment. 
D) let the borrower go to a collection agency. 
E) contact your creditors and try to work out a modified payment plan with them. 
A) skip town. 
B) declare personal bankruptcy. 
C) borrow from a loan shark to make the payment. 
D) let the borrower go to a collection agency. 
E) contact your creditors and try to work out a modified payment plan with them.

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

The Federal Trade Commission enforces the:

Accepted Answer

A) Truth in Lending Act. 
B) Equal Credit Opportunity Act. 
C) Fair Credit Billing Act. 
D) Fair Debt Collection Practices Act. 
E) Fair Credit Reporting Act. 
A) Truth in Lending Act. 
B) Equal Credit Opportunity Act. 
C) Fair Credit Billing Act. 
D) Fair Debt Collection Practices Act. 
E) Fair Credit Reporting Act.

Question 8

Which one of the following financing methods provides a float period?

Accepted Answer

A) installment loan 
B) credit card 
C) lump-sum loan 
D) home equity line of credit 
E) auto loan 
A) installment loan 
B) credit card 
C) lump-sum loan 
D) home equity line of credit 
E) auto loan

Question 9

The CCCS counseling is:

Accepted Answer

A) quite costly. 
B) usually free. 
C) often useless. 
D) fraught with red tape. 
E) available only if you declare bankruptcy. 
A) quite costly. 
B) usually free. 
C) often useless. 
D) fraught with red tape. 
E) available only if you declare bankruptcy.

Question 10

In a Chapter 7 bankruptcy,debtor:

Accepted Answer

A) is required to draw up a petition listing all assets and liabilities. 
B) does not have to pay a filing fee. 
C) is called a "bankrupt." 
D) is absolved of alimony and child support payments. 
E) does not have to repay educational loans. 
A) is required to draw up a petition listing all assets and liabilities. 
B) does not have to pay a filing fee. 
C) is called a "bankrupt." 
D) is absolved of alimony and child support payments. 
E) does not have to repay educational loans.

Question 11

Explain the Rule of 78s.

Accepted Answer

The answer of Explain the Rule of 78s....

Question 12

In a Chapter 7 bankruptcy,a person filing for relief is called a:

Accepted Answer

A) bankrupt. 
B) debtor. 
C) dependent. 
D) criminal. 
E) creditor. 
A) bankrupt. 
B) debtor. 
C) dependent. 
D) criminal. 
E) creditor.

Question 13

Sandra Jennings gets a loan from General Motors Acceptance Corporation.Which type of lending institution is this?

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 14

Excessive indebtedness can result in:

Accepted Answer

A) heavy drinking. 
B) a neglect of children. 
C) marital problems. 
D) drug abuse. 
E) all of the answers are possible results. 
A) heavy drinking. 
B) a neglect of children. 
C) marital problems. 
D) drug abuse. 
E) all of the answers are possible results.

Question 15

The least expensive loans are available from finance companies and retailers.

Accepted Answer

A) True 
 B)False

Question 16

Which one of the following is a local organization that provides debt counseling services for families and individuals?

Accepted Answer

A) Credit Bureau 
B) Chamber of Commerce 
C) Consumer Credit Counseling Service 
D) Internal Revenue Service 
E) Better Business Bureau 
A) Credit Bureau 
B) Chamber of Commerce 
C) Consumer Credit Counseling Service 
D) Internal Revenue Service 
E) Better Business Bureau

Question 17

Chuck Stallings qualifies for a credit card from J.C.Penney.Which of the following offers this type of loan?

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 18

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

Accepted Answer

A) True 
 B)False

Question 19

If creditors add finance charges after subtracting payments made during the billing period,this is called the previous balance method.

Accepted Answer

A) True 
 B)False

Question 20

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.

What is the number one reason why consumers default on their debts?

A person filing for relief under the bankruptcy code is called a bankrupt,not a debtor.

You just received your credit card statement.Which of the following are included on that statement?

With collateral,you will probably pay a higher interest rate on your loan than you would without collateral.

If you find that you cannot make your payments,the first thing you should do is:

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

The Federal Trade Commission enforces the:

Which one of the following financing methods provides a float period?

The CCCS counseling is:

In a Chapter 7 bankruptcy,debtor:

Explain the Rule of 78s.

In a Chapter 7 bankruptcy,a person filing for relief is called a:

Sandra Jennings gets a loan from General Motors Acceptance Corporation.Which type of lending institution is this?

Excessive indebtedness can result in:

The least expensive loans are available from finance companies and retailers.

Which one of the following is a local organization that provides debt counseling services for families and individuals?

Chuck Stallings qualifies for a credit card from J.C.Penney.Which of the following offers this type of loan?

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

If creditors add finance charges after subtracting payments made during the billing period,this is called the previous balance method.

The Rule of 78s demonstrates that a borrower pays:

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

Exam 7: Choosing a Source of Credit: The Costs of Credit Alternatives

What is the number one reason why consumers default on their debts?

A person filing for relief under the bankruptcy code is called a bankrupt,not a debtor.

You just received your credit card statement.Which of the following are included on that statement?

With collateral,you will probably pay a higher interest rate on your loan than you would without collateral.

If you find that you cannot make your payments,the first thing you should do is:

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

The Federal Trade Commission enforces the:

Which one of the following financing methods provides a float period?

The CCCS counseling is:

In a Chapter 7 bankruptcy,debtor:

Explain the Rule of 78s.

In a Chapter 7 bankruptcy,a person filing for relief is called a:

Sandra Jennings gets a loan from General Motors Acceptance Corporation.Which type of lending institution is this?

Excessive indebtedness can result in:

The least expensive loans are available from finance companies and retailers.

Which one of the following is a local organization that provides debt counseling services for families and individuals?

Chuck Stallings qualifies for a credit card from J.C.Penney.Which of the following offers this type of loan?

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

If creditors add finance charges after subtracting payments made during the billing period,this is called the previous balance method.

The Rule of 78s demonstrates that a borrower pays:

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