Question 1

If you cosign a loan,

Accepted Answer

A)  you are not being asked to guarantee the debt. 
B)  it is not your legal responsibility to pay the debt. 
C)  you'll have to pay up to the full amount of the debt if the borrower does not pay. 
D)  the creditor must first try to collect from the borrower. 
E)  the creditor cannot garnish your wages. 
A)  you are not being asked to guarantee the debt. 
B)  it is not your legal responsibility to pay the debt. 
C)  you'll have to pay up to the full amount of the debt if the borrower does not pay. 
D)  the creditor must first try to collect from the borrower. 
E)  the creditor cannot garnish your wages. C

Question 2

A loan officer is examining your income and the amount of your existing debt payments to help in the decision to make a loan to you today. Which aspect of the Five Cs of lending is the loan officer most likely looking at?

Accepted Answer

A)  Character 
B)  Capacity 
C)  Capital 
D)  Collateral 
E)  Conditions 
A)  Character 
B)  Capacity 
C)  Capital 
D)  Collateral 
E)  Conditions B

Question 3

Which of the following agencies can produce for a subscribing creditor, almost instantaneously, a report about your past and present credit activity?

Accepted Answer

A)  The Bank of Canada 
B)  The Canada Customs and Revenue Agency 
C)  Your financial institution 
D)  A debit bureau 
E)  A credit bureau 
A)  The Bank of Canada 
B)  The Canada Customs and Revenue Agency 
C)  Your financial institution 
D)  A debit bureau 
E)  A credit bureau E

Question 4

Incidental credit is a credit arrangement that has no extra costs and no specific repayment plan.

Accepted Answer

A) True 
 B)False

Question 5

What are the two basic types of credit? Give examples of both.

Accepted Answer

Consumer loans and revolving credit. Con

Question 6

Questions you should consider before you decide how and when to make a major purchase include all except

Accepted Answer

A)  do I have the cash I need for a down payment 
B)  do I want to use my savings for this purchase 
C)  could I postpone this purchase 
D)  what are the psychological costs of using credit (being in debt and responsible for monthly payments) 
E)  all these questions should be considered 
A)  do I have the cash I need for a down payment 
B)  do I want to use my savings for this purchase 
C)  could I postpone this purchase 
D)  what are the psychological costs of using credit (being in debt and responsible for monthly payments) 
E)  all these questions should be considered

Question 7

Interest is a periodic charge for the use of credit, or other finance charges.

Accepted Answer

A) True 
 B)False

Question 8

Valid reasons for using credit include all of the following except

Accepted Answer

A)  medical emergency 
B)  acquiring a car to return to the workforce 
C)  borrowing for a higher education 
D)  borrow for everyday living expenses 
E)  buying an item now will cost less than in the future 
A)  medical emergency 
B)  acquiring a car to return to the workforce 
C)  borrowing for a higher education 
D)  borrow for everyday living expenses 
E)  buying an item now will cost less than in the future

Question 9

Briefly list and discuss the benefits associated with credit cards

Accepted Answer

If you use the right credit card, and us

Question 10

By paying cash for a purchase, you

Accepted Answer

A)  forgo the opportunity to keep the cash in an interest-bearing account. 
B)  always get a cash discount. 
C)  can build a better credit rating. 
D)  get better personal service from store employees. 
E)  have a better selection of goods than if you use credit. 
A)  forgo the opportunity to keep the cash in an interest-bearing account. 
B)  always get a cash discount. 
C)  can build a better credit rating. 
D)  get better personal service from store employees. 
E)  have a better selection of goods than if you use credit.

Question 11

What can be included in your credit report?

Accepted Answer

A)  race 
B)  nationality 
C)  sex 
D)  employer 
E)  religion 
A)  race 
B)  nationality 
C)  sex 
D)  employer 
E)  religion

Question 12

A credit card cash withdrawal always incurs interest from the moment of withdrawal.

Accepted Answer

A) True 
 B)False

Question 13

The 25-to 44-age group currently represents about 30 percent of the population but holds nearly ____________ percent of the debt outstanding.

Accepted Answer

A)  80 
B)  70 
C)  60 
D)  50 
E)  40 
A)  80 
B)  70 
C)  60 
D)  50 
E)  40

Question 14

A personal line of credit is a pre-arranged loan for a specified amount that you can use by writing a special check.

Accepted Answer

A) True 
 B)False

Question 15

There are _________ main credit bureaus in Canada

Accepted Answer

A)  1 
B)  2 
C)  3 
D)  5 
E)  8 
A)  1 
B)  2 
C)  3 
D)  5 
E)  8

Question 16

If your debt-to-equity ratio is about 1, you have probably reached the upper limit of debt obligations.

Accepted Answer

A) True 
 B)False

Question 17

Some studies show that as many as three out of four cosigners are asked to repay the loan.

Accepted Answer

A) True 
 B)False

Question 18

Generally, most of the information in your credit file may be reported for only ______ years.

Accepted Answer

A)  7 
B)  9 
C)  11 
D)  13 
E)  15 
A)  7 
B)  9 
C)  11 
D)  13 
E)  15

Question 19

How can you protect yourself against credit/debit card fraud?

Accepted Answer

Here are the ways to protect yourself fr

Question 20

What percentage of Canadian households carry 1 or more credit cards

Accepted Answer

A)  20% 
B)  30% 
C)  50% 
D)  70% 
E)  more than 80% 
A)  20% 
B)  30% 
C)  50% 
D)  70% 
E)  more than 80%

If you cosign a loan,

A loan officer is examining your income and the amount of your existing debt payments to help in the decision to make a loan to you today. Which aspect of the Five Cs of lending is the loan officer most likely looking at?

Which of the following agencies can produce for a subscribing creditor, almost instantaneously, a report about your past and present credit activity?

Incidental credit is a credit arrangement that has no extra costs and no specific repayment plan.

What are the two basic types of credit? Give examples of both.

Questions you should consider before you decide how and when to make a major purchase include all except

Interest is a periodic charge for the use of credit, or other finance charges.

Valid reasons for using credit include all of the following except

Briefly list and discuss the benefits associated with credit cards

By paying cash for a purchase, you

What can be included in your credit report?

A credit card cash withdrawal always incurs interest from the moment of withdrawal.

The 25-to 44-age group currently represents about 30 percent of the population but holds nearly ____________ percent of the debt outstanding.

A personal line of credit is a pre-arranged loan for a specified amount that you can use by writing a special check.

There are _________ main credit bureaus in Canada

If your debt-to-equity ratio is about 1, you have probably reached the upper limit of debt obligations.

Some studies show that as many as three out of four cosigners are asked to repay the loan.

Generally, most of the information in your credit file may be reported for only ______ years.

How can you protect yourself against credit/debit card fraud?

What percentage of Canadian households carry 1 or more credit cards

Personal Financial Planning: An Introduction

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

The Banking Services of Financial Institutions

Choosing a Source Credit: the Costs of Credit Alternatives

The Finances of Housing

Home and Automobile Insurance

Life, Health, and Disability Insurance

Fundamentals of Investing

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Retirement Planning

Estate Planning

Filters

Exam 5: Introduction to Consumer Credit

If you cosign a loan,

A loan officer is examining your income and the amount of your existing debt payments to help in the decision to make a loan to you today. Which aspect of the Five Cs of lending is the loan officer most likely looking at?

Which of the following agencies can produce for a subscribing creditor, almost instantaneously, a report about your past and present credit activity?

Incidental credit is a credit arrangement that has no extra costs and no specific repayment plan.

What are the two basic types of credit? Give examples of both.

Questions you should consider before you decide how and when to make a major purchase include all except

Interest is a periodic charge for the use of credit, or other finance charges.

Valid reasons for using credit include all of the following except

Briefly list and discuss the benefits associated with credit cards

By paying cash for a purchase, you

What can be included in your credit report?

A credit card cash withdrawal always incurs interest from the moment of withdrawal.

The 25-to 44-age group currently represents about 30 percent of the population but holds nearly ____________ percent of the debt outstanding.

A personal line of credit is a pre-arranged loan for a specified amount that you can use by writing a special check.

There are _________ main credit bureaus in Canada

If your debt-to-equity ratio is about 1, you have probably reached the upper limit of debt obligations.

Some studies show that as many as three out of four cosigners are asked to repay the loan.

Generally, most of the information in your credit file may be reported for only ______ years.

How can you protect yourself against credit/debit card fraud?

What percentage of Canadian households carry 1 or more credit cards

Personal Financial Planning: An Introduction

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

The Banking Services of Financial Institutions

Choosing a Source Credit: the Costs of Credit Alternatives

The Finances of Housing

Home and Automobile Insurance

Life, Health, and Disability Insurance

Fundamentals of Investing

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Retirement Planning

Estate Planning

Filters