Question 1

Which type of credit insurance repays your debt in the event of a loss of income due to illness or injury?

Accepted Answer

A)  credit life insurance 
B)  credit accident and health insurance 
C)  credit property insurance 
D)  credit casualty insurance 
E)  credit debit insurance 
A)  credit life insurance 
B)  credit accident and health insurance 
C)  credit property insurance 
D)  credit casualty insurance 
E)  credit debit insurance

Question 2

What effective rate of interest is being charged when the quoted APR is 6%,compounded semi-annually?

Accepted Answer

A)  6.00% 
B)  6.09% 
C)  6.17% 
D)  6.18% 
E)  6.50% 
A)  6.00% 
B)  6.09% 
C)  6.17% 
D)  6.18% 
E)  6.50%

Question 3

The most expensive loans available are provided by finance companies,retailers,and banks through credit cards.

Accepted Answer

A) True 
 B)False

Question 4

Most borrowers should buy credit life insurance.

Accepted Answer

A) True 
 B)False

Question 5

Anyone overburdened by credit obligations can phone,write,or visit a credit counsellor.

Accepted Answer

A) True 
 B)False

Question 6

It takes considerably longer to repay an interest only line of credit than it takes to repay a traditional consumer installment loan.

Accepted Answer

A) True 
 B)False

Question 7

Two key concepts that you should keep in mind when borrowing are the finance charge and the annual percentage rate.

Accepted Answer

A) True 
 B)False

Question 8

Consumer credit counseling services are basically concerned with

Accepted Answer

A)  lending the money to destitute people. 
B)  giving debtors food and shelter. 
C)  helping destitute debtors to relocate in less expensive areas. 
D)  preventing and solving the problems related to credit overextension. 
E)  getting you more credit 
A)  lending the money to destitute people. 
B)  giving debtors food and shelter. 
C)  helping destitute debtors to relocate in less expensive areas. 
D)  preventing and solving the problems related to credit overextension. 
E)  getting you more credit

Question 9

Most people who are unable to manage their debts are:

Accepted Answer

A)  criminals who take advantage of creditors. 
B)  living in the poverty-stricken areas. 
C)  expected to declare Chapter 11 bankruptcy. 
D)  mostly dishonest people. 
E)  mostly honest people. 
A)  criminals who take advantage of creditors. 
B)  living in the poverty-stricken areas. 
C)  expected to declare Chapter 11 bankruptcy. 
D)  mostly dishonest people. 
E)  mostly honest people.

Question 10

Which of the following tend to be expensive loans?

Accepted Answer

A)  retailers 
B)  banks 
C)  credit unions 
D)  family members 
E)  trust companies 
A)  retailers 
B)  banks 
C)  credit unions 
D)  family members 
E)  trust companies

Question 11

The best way to pay off credit is to follow the minimum payment amount stated on your bill.

Accepted Answer

A) True 
 B)False

Question 12

Governmental non-profit counseling services are usually free or at low cost.

Accepted Answer

A) True 
 B)False

Question 13

A float refers to:

Accepted Answer

A)  an interest charged for only a few days. 
B)  something one enjoys in a parade. 
C)  a home equity loan. 
D)  a period when no interest is charged. 
E)  a lump-sum loan from a credit union. 
A)  an interest charged for only a few days. 
B)  something one enjoys in a parade. 
C)  a home equity loan. 
D)  a period when no interest is charged. 
E)  a lump-sum loan from a credit union.

Question 14

A variable interest rate is based on fluctuating rates in the banking system,such as the prime rate.

Accepted Answer

A) True 
 B)False

Question 15

According to consumer affairs experts,one of the nation's main family financial problems is

Accepted Answer

A)  that families don't prepare their budgets. 
B)  over-indebtedness. 
C)  over consumption. 
D)  buying too much insurance. 
E)  unemployment. 
A)  that families don't prepare their budgets. 
B)  over-indebtedness. 
C)  over consumption. 
D)  buying too much insurance. 
E)  unemployment.

Question 16

The least expensive loans are available from car dealers,appliance stores,department stores.

Accepted Answer

A) True 
 B)False

Question 17

Non-profit credit counseling services are sometimes provided by

Accepted Answer

A)  universities. 
B)  military bases. 
C)  credit unions. 
D)  provincial and federal authorities. 
E)  All of them may provide such services. 
A)  universities. 
B)  military bases. 
C)  credit unions. 
D)  provincial and federal authorities. 
E)  All of them may provide such services.

Question 18

Over-indebtedness is one of the nation's main family financial problems.

Accepted Answer

A) True 
 B)False

Question 19

Identify the correct statements. I.Shortening the term of a loan will reduce total interest charges.
II)The interest component of each installment loan payment rises over time.
III)A credit card holder who pays the minimum balance each month will remain in good standing.

Accepted Answer

A)  I and II,only 
B)  II and III,only 
C)  I and III,only 
D)  I,II and III 
E)  I only 
A)  I and II,only 
B)  II and III,only 
C)  I and III,only 
D)  I,II and III 
E)  I only

Question 20

Compounding the annual percentage rate (APR)four times a year is equivalent to:

Accepted Answer

A)  the annual percentage rate (APR)quoted by a financial institution. 
B)  the annual percentage rate (APR)compounded semi-annually. 
C)  the effective annual rate (EAR)annually. 
D)  the effective annual rate (EAR)semi-annually 
E)  the effective annual rate (EAR)quarterly. 
A)  the annual percentage rate (APR)quoted by a financial institution. 
B)  the annual percentage rate (APR)compounded semi-annually. 
C)  the effective annual rate (EAR)annually. 
D)  the effective annual rate (EAR)semi-annually 
E)  the effective annual rate (EAR)quarterly.

Which type of credit insurance repays your debt in the event of a loss of income due to illness or injury?

What effective rate of interest is being charged when the quoted APR is 6%,compounded semi-annually?

The most expensive loans available are provided by finance companies,retailers,and banks through credit cards.

Most borrowers should buy credit life insurance.

Anyone overburdened by credit obligations can phone,write,or visit a credit counsellor.

It takes considerably longer to repay an interest only line of credit than it takes to repay a traditional consumer installment loan.

Two key concepts that you should keep in mind when borrowing are the finance charge and the annual percentage rate.

Consumer credit counseling services are basically concerned with

Most people who are unable to manage their debts are:

Which of the following tend to be expensive loans?

The best way to pay off credit is to follow the minimum payment amount stated on your bill.

Governmental non-profit counseling services are usually free or at low cost.

A float refers to:

A variable interest rate is based on fluctuating rates in the banking system,such as the prime rate.

According to consumer affairs experts,one of the nation's main family financial problems is

The least expensive loans are available from car dealers,appliance stores,department stores.

Non-profit credit counseling services are sometimes provided by

Over-indebtedness is one of the nation's main family financial problems.

Identify the correct statements. I.Shortening the term of a loan will reduce total interest charges. II)The interest component of each installment loan payment rises over time. III)A credit card holder who pays the minimum balance each month will remain in good standing.

Compounding the annual percentage rate (APR)four times a year is equivalent to:

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

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

Which type of credit insurance repays your debt in the event of a loss of income due to illness or injury?

What effective rate of interest is being charged when the quoted APR is 6%,compounded semi-annually?

The most expensive loans available are provided by finance companies,retailers,and banks through credit cards.

Most borrowers should buy credit life insurance.

Anyone overburdened by credit obligations can phone,write,or visit a credit counsellor.

It takes considerably longer to repay an interest only line of credit than it takes to repay a traditional consumer installment loan.

Two key concepts that you should keep in mind when borrowing are the finance charge and the annual percentage rate.

Consumer credit counseling services are basically concerned with

Most people who are unable to manage their debts are:

Which of the following tend to be expensive loans?

The best way to pay off credit is to follow the minimum payment amount stated on your bill.

Governmental non-profit counseling services are usually free or at low cost.

A float refers to:

A variable interest rate is based on fluctuating rates in the banking system,such as the prime rate.

According to consumer affairs experts,one of the nation's main family financial problems is

The least expensive loans are available from car dealers,appliance stores,department stores.

Non-profit credit counseling services are sometimes provided by

Over-indebtedness is one of the nation's main family financial problems.

Identify the correct statements. I.Shortening the term of a loan will reduce total interest charges. II)The interest component of each installment loan payment rises over time. III)A credit card holder who pays the minimum balance each month will remain in good standing.

Compounding the annual percentage rate (APR)four times a year is equivalent to:

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