Exam 7: Using Consumer Loans

The purchase of credit life insurance is highly recommended by most financial planning experts.

Consumers whose debt burden has become very heavy might apply for a(n)

If a loan has a prepayment penalty,there will be an additional cost to repay the loan early.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -You are borrowing $5,000 at 9%.You may choose a 24- or 36-month repayment plan.Monthly payments will be higher with the [24-month | 36-month] plan.

College costs have been escalating faster than the overall rate of inflation.

GMAC is an example of a captive finance company.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item 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-month| 36-month] plan.

In order to continue receiving student loans,the student must be making satisfactory progress in his academic program.