Question 1

Funds provided by a borrower that will be repaid in the future, with interest, is credit.

Accepted Answer

A) True 
 B)False

Question 2

Which is the most important way to avoid identity theft?

Accepted Answer

A) Change your social insurance number periodically. 
B) Change your passwords and PIN numbers frequently. 
C) Use passwords such as your mother's maiden name. 
D) Request a credit report every two months. 
A) Change your social insurance number periodically. 
B) Change your passwords and PIN numbers frequently. 
C) Use passwords such as your mother's maiden name. 
D) Request a credit report every two months.

Question 3

The easiest way to establish credit history is

Accepted Answer

A) to apply for a credit card. 
B) get a mortgage. 
C) invest money in securities. 
D) to save money in banks. 
A) to apply for a credit card. 
B) get a mortgage. 
C) invest money in securities. 
D) to save money in banks.

Question 4

Which of the following will not be included on your credit report?

Accepted Answer

A) Social insurance number 
B) Your employment income 
C) Unpaid accounts 
D) Companies that have recently inquired about your credit report 
A) Social insurance number 
B) Your employment income 
C) Unpaid accounts 
D) Companies that have recently inquired about your credit report

Question 5

Most students graduating from college or university today have an average debt of less than $1000.

Accepted Answer

A) True 
 B)False

Question 6

A person can be declared insolvent if

Accepted Answer

A) he or she has no assets. 
B) his or her spouse is insolvent as well. 
C) he or she owes $1000 and is unable to pay. 
D) monthly payments exceed $1000. 
A) he or she has no assets. 
B) his or her spouse is insolvent as well. 
C) he or she owes $1000 and is unable to pay. 
D) monthly payments exceed $1000.

Question 7

If you find that you will not be able to make credit payments on time, the best course of action is to immediately notify the creditor.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is the most serious threat from identity theft?

Accepted Answer

A) Arrest due to an identity thief's actions 
B) The financial cost to society 
C) Loss of access to credit 
D) Credit card charges made by the thief 
A) Arrest due to an identity thief's actions 
B) The financial cost to society 
C) Loss of access to credit 
D) Credit card charges made by the thief

Question 9

Credit card use can be good for your financial plan if you have budgeted to pay the entire balance when the statement is due.

Accepted Answer

A) True 
 B)False

Question 10

TransUnion is aware that you are one month late on your car payment, while Equifax has not yet uncovered this information. Which of the following statements is correct?

Accepted Answer

A) TransUnion will have a lower credit score for you than Equifax. 
B) Both companies will have the same credit score because of the grace period. 
C) Being late one month on a car payment will not affect your BEACON score. 
D) Only credit card delinquency is considered because it is riskier than revolving high-interest credit. 
A) TransUnion will have a lower credit score for you than Equifax. 
B) Both companies will have the same credit score because of the grace period. 
C) Being late one month on a car payment will not affect your BEACON score. 
D) Only credit card delinquency is considered because it is riskier than revolving high-interest credit.

Question 11

It is always easier to pay back what you borrow than to obtain credit in the first place.

Accepted Answer

A) True 
 B)False

Question 12

A poor credit history will appear on your credit report for

Accepted Answer

A) 10 to 20 years. 
B) 3 to 10 years. 
C) 8 to 15 years. 
D) 5 to 7 years. 
A) 10 to 20 years. 
B) 3 to 10 years. 
C) 8 to 15 years. 
D) 5 to 7 years.

Question 13

Creditors that become insolvent and cannot pay their debts must proceed directly to a bankruptcy trustee.

Accepted Answer

A) True 
 B)False

Question 14

The best way you can begin to improve your credit score is

Accepted Answer

A) by using one credit card to pay off another. 
B) by paying off the highest-interest creditor first. 
C) by applying for more credit. 
D) by making the expected payments on time. 
A) by using one credit card to pay off another. 
B) by paying off the highest-interest creditor first. 
C) by applying for more credit. 
D) by making the expected payments on time.

Question 15

Jacob has an outstanding credit card bill of $2000 and the financial institution charges a 22 percent effective annual interest rate on this outstanding balance. Jacob also has $1000 in an investment account earning eight percent per year. For effective debt management, Jacob should

Accepted Answer

A) borrow more money to invest. 
B) borrow money from another financial institution and pay off the $2000 outstanding balance. 
C) use the $1000 investment fund to pay down the credit card balance. 
D) use the $1000 investment fund to look for potential investment opportunities with higher returns. 
A) borrow more money to invest. 
B) borrow money from another financial institution and pay off the $2000 outstanding balance. 
C) use the $1000 investment fund to pay down the credit card balance. 
D) use the $1000 investment fund to look for potential investment opportunities with higher returns.

Question 16

One advantage of credit cards is that you can receive free financing if you pay off your balance each month.

Accepted Answer

A) True 
 B)False

Question 17

A credit card is a type of

Accepted Answer

A) revolving credit. 
B) instalment credit. 
C) variable rate credit. 
D) flow through credit. 
A) revolving credit. 
B) instalment credit. 
C) variable rate credit. 
D) flow through credit.

Question 18

Credit issued by department stores for relatively long periods of time is called non-installment credit.

Accepted Answer

A) True 
 B)False

Question 19

Equifax Canada is not one of the three primary credit bureaus.

Accepted Answer

A) True 
 B)False

Question 20

A line of credit or a credit card is not an example of revolving open-end credit.

Accepted Answer

A) True 
 B)False

Funds provided by a borrower that will be repaid in the future, with interest, is credit.

Which is the most important way to avoid identity theft?

The easiest way to establish credit history is

Which of the following will not be included on your credit report?

Most students graduating from college or university today have an average debt of less than $1000.

A person can be declared insolvent if

If you find that you will not be able to make credit payments on time, the best course of action is to immediately notify the creditor.

Which of the following is the most serious threat from identity theft?

Credit card use can be good for your financial plan if you have budgeted to pay the entire balance when the statement is due.

TransUnion is aware that you are one month late on your car payment, while Equifax has not yet uncovered this information. Which of the following statements is correct?

It is always easier to pay back what you borrow than to obtain credit in the first place.

A poor credit history will appear on your credit report for

Creditors that become insolvent and cannot pay their debts must proceed directly to a bankruptcy trustee.

The best way you can begin to improve your credit score is

Jacob has an outstanding credit card bill of $2000 and the financial institution charges a 22 percent effective annual interest rate on this outstanding balance. Jacob also has $1000 in an investment account earning eight percent per year. For effective debt management, Jacob should

One advantage of credit cards is that you can receive free financing if you pay off your balance each month.

A credit card is a type of

Credit issued by department stores for relatively long periods of time is called non-installment credit.

Equifax Canada is not one of the three primary credit bureaus.

A line of credit or a credit card is not an example of revolving open-end credit.

Overview of a Financial Plan

Tools for Financial Planning - Applying Time Value Concepts

Tools for Financial Planning - Planning With Personal Financial Statements

Tools for Financial Planning - Using Tax Concepts for Planning

Banking Services and Managing Your Money

Personal Financing - Personal Loans

Personal Financing - Purchasing and Financing a Home

Protecting Your Wealth - Auto and Homeowners Insurance

Protecting Your Wealth - Health and Life Insurance

Personal Investing - Investing Fundamentals

Personal Investing - Investing in Stocks

Personal Investing - Investing in Bonds

Personal Investing - Investing in Mutual Funds

Retirement and Estate Planning - Retirement Planning

Retirement and Estate Planning - Estate Planning

Synthesis of Financial Planning - Integrating the Components of a Financial Plan

Filters

Exam 6: Managing Your Liquidity - Assessing, Managing, and Securing Your Credit

Funds provided by a borrower that will be repaid in the future, with interest, is credit.

Which is the most important way to avoid identity theft?

The easiest way to establish credit history is

Which of the following will not be included on your credit report?

Most students graduating from college or university today have an average debt of less than $1000.

A person can be declared insolvent if

If you find that you will not be able to make credit payments on time, the best course of action is to immediately notify the creditor.

Which of the following is the most serious threat from identity theft?

Credit card use can be good for your financial plan if you have budgeted to pay the entire balance when the statement is due.

TransUnion is aware that you are one month late on your car payment, while Equifax has not yet uncovered this information. Which of the following statements is correct?

It is always easier to pay back what you borrow than to obtain credit in the first place.

A poor credit history will appear on your credit report for

Creditors that become insolvent and cannot pay their debts must proceed directly to a bankruptcy trustee.

The best way you can begin to improve your credit score is

Jacob has an outstanding credit card bill of $2000 and the financial institution charges a 22 percent effective annual interest rate on this outstanding balance. Jacob also has $1000 in an investment account earning eight percent per year. For effective debt management, Jacob should

One advantage of credit cards is that you can receive free financing if you pay off your balance each month.

A credit card is a type of

Credit issued by department stores for relatively long periods of time is called non-installment credit.

Equifax Canada is not one of the three primary credit bureaus.

A line of credit or a credit card is not an example of revolving open-end credit.

Overview of a Financial Plan

Tools for Financial Planning - Applying Time Value Concepts

Tools for Financial Planning - Planning With Personal Financial Statements

Tools for Financial Planning - Using Tax Concepts for Planning

Banking Services and Managing Your Money

Personal Financing - Personal Loans

Personal Financing - Purchasing and Financing a Home

Protecting Your Wealth - Auto and Homeowners Insurance

Protecting Your Wealth - Health and Life Insurance

Personal Investing - Investing Fundamentals

Personal Investing - Investing in Stocks

Personal Investing - Investing in Bonds

Personal Investing - Investing in Mutual Funds

Retirement and Estate Planning - Retirement Planning

Retirement and Estate Planning - Estate Planning

Synthesis of Financial Planning - Integrating the Components of a Financial Plan

Filters