Exam 7: Using Consumer Loans

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -When interest rates are rising,you would prefer a [fixed-rate | variable-rate] loan.

(Multiple Choice)

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Question 121

Commercial banks are generally more selective in granting loans than finance companies.

(True/False)

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Question 122

Single payment loans are used mostly for short-term financing.

(True/False)

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Question 123

The majority of loans made by savings and loan associations are ____ loans.

(Multiple Choice)

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Question 124

Most loans made by consumer finance companies are for larger amounts and are made to low risk borrowers.

(True/False)

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Question 125

Which of the following is accurate concerning 529 college savings plans?

(Multiple Choice)

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Question 126

The repayment period on most installment loans is six to twelve months.

(True/False)

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Question 127

A characteristic of consumer loans is that they

(Multiple Choice)

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Question 128

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -Borrowing from relatives is [highly | seldom] recommended by financial advisors.

(Multiple Choice)

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Question 129

Credit unions offer some of the most attractive loan terms available.

(True/False)

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Question 130

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -A 529 plan is a [savings | lending] plan.

(Multiple Choice)

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Question 131

If your installment loan has a variable interest rate,

(Multiple Choice)

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Question 132

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -A [sales finance company | captive finance company] purchases notes drawn up by sellers of typically big-ticket items.

(Multiple Choice)

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Question 133

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -You are borrowing $5,000 at 9%.You may choose a 24 or 36 month repayment plan.The total finance cost will be higher with the [24 | 36] month plan.

(Multiple Choice)

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Question 134

The most common use of consumer loans are to purchase automobiles.

(True/False)

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Question 135

If the discount method is used to calculate a finance charge of $250.60 on a $2,400 loan,the amount to be disbursed to the borrower is $2,400.

(True/False)

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Question 136

Life insurance loans are income tax-free.

(True/False)

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Question 137

Variable rate loans are desirable if interest rates are expected to fall in the future.

(True/False)

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Question 138

With the discount method,the finance charges are calculated and then added to the amount borrowed.

(True/False)

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Question 139

A personal,unsecured consumer loan is most frequently used to help borrowers straighten out a critical financial situation.

(True/False)

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Question 140

Showing 121 - 140 of 161

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -When interest rates are rising,you would prefer a [fixed-rate | variable-rate] loan.

Commercial banks are generally more selective in granting loans than finance companies.

Single payment loans are used mostly for short-term financing.

The majority of loans made by savings and loan associations are ____ loans.

Most loans made by consumer finance companies are for larger amounts and are made to low risk borrowers.

Which of the following is accurate concerning 529 college savings plans?

The repayment period on most installment loans is six to twelve months.

A characteristic of consumer loans is that they

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -Borrowing from relatives is [highly | seldom] recommended by financial advisors.

Credit unions offer some of the most attractive loan terms available.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -A 529 plan is a [savings | lending] plan.

If your installment loan has a variable interest rate,

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -A [sales finance company | captive finance company] purchases notes drawn up by sellers of typically big-ticket items.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -You are borrowing $5,000 at 9%.You may choose a 24 or 36 month repayment plan.The total finance cost will be higher with the [24 | 36] month plan.

The most common use of consumer loans are to purchase automobiles.

If the discount method is used to calculate a finance charge of $250.60 on a $2,400 loan,the amount to be disbursed to the borrower is $2,400.

Life insurance loans are income tax-free.

Variable rate loans are desirable if interest rates are expected to fall in the future.

With the discount method,the finance charges are calculated and then added to the amount borrowed.

A personal,unsecured consumer loan is most frequently used to help borrowers straighten out a critical financial situation.

Understanding the Financial Planning Process

Using Financial Statements and Budgets

Preparing Your Taxes

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Credit

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds

Planning for Retirement

Preserving Your Estate

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