Question 1

Credit disability insurance can be used when the borrower is unable to pay back a loan in a case of illness or injury.

Accepted Answer

A) True 
 B)False

Question 2

The fairest method of calculating the interest is the adjusted balance method.

Accepted Answer

A) True 
 B)False

Question 3

Paying only the minimum balance each month on credit card bills is a signal of potential debt problems.

Accepted Answer

A) True 
 B)False

Question 4

Membership in credit unions has been

Accepted Answer

A)  growing steadily. 
B)  declining gradually. 
C)  static. 
D)  restricted by the Tax Act. 
E)  restricted by provincial laws. 
A)  growing steadily. 
B)  declining gradually. 
C)  static. 
D)  restricted by the Tax Act. 
E)  restricted by provincial laws.

Question 5

What is the EAR for a $100 loan when the interest is compounded monthly and the stated annual interest rate is 7 percent?

Accepted Answer

A)  7.0 percent 
B)  8.0 percent 
C)  7.23 percent 
D)  12.0 percent 
E)  16.0 percent 
A)  7.0 percent 
B)  8.0 percent 
C)  7.23 percent 
D)  12.0 percent 
E)  16.0 percent

Question 6

In financial institutions,the sources of credit:

Accepted Answer

A)  come in all shapes and sizes. 
B)  play an important role in our economy. 
C)  are typically short term 
D)  A and B are correct 
E)  A,B and C are correct 
A)  come in all shapes and sizes. 
B)  play an important role in our economy. 
C)  are typically short term 
D)  A and B are correct 
E)  A,B and C are correct

Question 7

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 8

The most commonly purchased type of credit insurance is credit life insurance.

Accepted Answer

A) True 
 B)False

Question 9

You may be able to borrow at a lower interest rate if you accept a shorter-term loan.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

The interest rate on a collateralized loan is relatively low,but one of the disadvantages of such loans is that

Accepted Answer

A)  the loan must be repaid in a short period of time. 
B)  the assets used as collateral are tied up until the loan has been repaid. 
C)  the loan is difficult to obtain. 
D)  commercial banks do not make such loans. 
E)  you ruin your credit rating. 
A)  the loan must be repaid in a short period of time. 
B)  the assets used as collateral are tied up until the loan has been repaid. 
C)  the loan is difficult to obtain. 
D)  commercial banks do not make such loans. 
E)  you ruin your credit rating.

Question 12

In a straight bankruptcy many,but not all,debts are forgiven.

Accepted Answer

A) True 
 B)False

Question 13

The disadvantage of using an interest only line of credit is the considerably longer time it takes to repay the loan in comparison to a traditional consumer installment loan.

Accepted Answer

A) True 
 B)False

Question 14

If creditors give you no credit for payments made during the billing period,this is called the

Accepted Answer

A)  APR method. 
B)  discount method. 
C)  previous balance method. 
D)  adjusted balance method. 
E)  average daily balance method. 
A)  APR method. 
B)  discount method. 
C)  previous balance method. 
D)  adjusted balance method. 
E)  average daily balance method.

Question 15

Credit counselors will aid families by

Accepted Answer

A)  setting up a budget for them. 
B)  paying off their loans. 
C)  providing free basic necessities. 
D)  providing one month free shelter. 
E)  relocating them in less expensive areas. 
A)  setting up a budget for them. 
B)  paying off their loans. 
C)  providing free basic necessities. 
D)  providing one month free shelter. 
E)  relocating them in less expensive areas.

Question 16

Credit costs usually do not vary.

Accepted Answer

A) True 
 B)False

Question 17

You can often obtain medium-priced loans from

Accepted Answer

A)  parents or family members. 
B)  American Express. 
C)  commercial banks and credit unions. 
D)  finance companies. 
E)  retailers. 
A)  parents or family members. 
B)  American Express. 
C)  commercial banks and credit unions. 
D)  finance companies. 
E)  retailers.

Question 18

Increasingly,the bankruptcy debtor is likely to be female.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following are signs of debt problems?

Accepted Answer

A)  foreclosure proceedings. 
B)  overdue payments. 
C)  approaching credit limits. 
D)  A and B are correct. 
E)  A,B and C are correct. 
A)  foreclosure proceedings. 
B)  overdue payments. 
C)  approaching credit limits. 
D)  A and B are correct. 
E)  A,B and C are correct.

Question 20

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

Accepted Answer

A) True 
 B)False

Credit disability insurance can be used when the borrower is unable to pay back a loan in a case of illness or injury.

The fairest method of calculating the interest is the adjusted balance method.

Paying only the minimum balance each month on credit card bills is a signal of potential debt problems.

Membership in credit unions has been

What is the EAR for a $100 loan when the interest is compounded monthly and the stated annual interest rate is 7 percent?

In financial institutions,the sources of credit:

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 most commonly purchased type of credit insurance is credit life insurance.

You may be able to borrow at a lower interest rate if you accept a shorter-term loan.

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

The interest rate on a collateralized loan is relatively low,but one of the disadvantages of such loans is that

In a straight bankruptcy many,but not all,debts are forgiven.

The disadvantage of using an interest only line of credit is the considerably longer time it takes to repay the loan in comparison to a traditional consumer installment loan.

If creditors give you no credit for payments made during the billing period,this is called the

Credit counselors will aid families by

Credit costs usually do not vary.

You can often obtain medium-priced loans from

Increasingly,the bankruptcy debtor is likely to be female.

Which of the following are signs of debt problems?

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

Personal Financial Planning in Action

Money Management Skills

Taxes in Your Financial Plan

Financial Services: Savings Plans and Payment Accounts

Consumer Credit: Advantages, Disadvantages, Sources, and Costs

Selecting and Financing Housing

Home and Automobile Insurance

Health and Disability Income Insurance

Financial Planning With Life Insurance

Investing Basics and Evaluating Bonds

Investing in Stocks

Investing in Mutual Funds

Starting Early: Retirement and Estate Planning

Daily Spending Diary

Filters

Exam 6: Consumer Purchasing Strategies and Wise Buying of Motor Vehicles

Credit disability insurance can be used when the borrower is unable to pay back a loan in a case of illness or injury.

The fairest method of calculating the interest is the adjusted balance method.

Paying only the minimum balance each month on credit card bills is a signal of potential debt problems.

Membership in credit unions has been

What is the EAR for a $100 loan when the interest is compounded monthly and the stated annual interest rate is 7 percent?

In financial institutions,the sources of credit:

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 most commonly purchased type of credit insurance is credit life insurance.

You may be able to borrow at a lower interest rate if you accept a shorter-term loan.

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

The interest rate on a collateralized loan is relatively low,but one of the disadvantages of such loans is that

In a straight bankruptcy many,but not all,debts are forgiven.

The disadvantage of using an interest only line of credit is the considerably longer time it takes to repay the loan in comparison to a traditional consumer installment loan.

If creditors give you no credit for payments made during the billing period,this is called the

Credit counselors will aid families by

Credit costs usually do not vary.

You can often obtain medium-priced loans from

Increasingly,the bankruptcy debtor is likely to be female.

Which of the following are signs of debt problems?

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

Personal Financial Planning in Action

Money Management Skills

Taxes in Your Financial Plan

Financial Services: Savings Plans and Payment Accounts

Consumer Credit: Advantages, Disadvantages, Sources, and Costs

Selecting and Financing Housing

Home and Automobile Insurance

Health and Disability Income Insurance

Financial Planning With Life Insurance

Investing Basics and Evaluating Bonds

Investing in Stocks

Investing in Mutual Funds

Starting Early: Retirement and Estate Planning

Daily Spending Diary

Filters