Exam 6: Managing Your Financial Resources - Assessing, Managing, and Securing Your Credit

Using email messages from a legitimate source to obtain account information for the purpose of identity theft is referred to as

Posing as an employee of a financial institution to obtain information for purposes of identity theft is an example of pretexting.

From a borrower's perspective,all else the same,a longer-term loan

Illustrate the cost implications of using a credit card with 21 percent interest charges versus a line of credit with five percent interest charges to fund a $10 000 purchase.In one case,assume you only have $250 per month you can allocate to paying off the debt.In the second case assume you need to get the debt paid off in five years.

A BEACON score of 820 indicates a person has a high likelihood of paying back debt as expected.

Credit insurance will pay off all your credit card debt when you cannot work due to accident or illness.

The risk in co-signing on a loan for a friend is not significant,as you are not the primary borrower.

Which would be the best loan offer? Loan A has a 9.5 percent rate calculated quarterly and Loan B has a 9.25 percent rate calculated monthly.

What would be the total cost of leasing a vehicle for four years that requires a security deposit of $1000 (which would be withdrawn from your portfolio,which earns nine percent per year),has monthly lease payments of $500,and has a kilometer restriction of 20 000 with excess kilometers resulting in a charge of 10 cents per kilometer? (Assume that,over the life of the lease,you exceed the kilometer limit by 8000. )

Someone with a poor credit rating might be offered a credit card with a 28 percent interest rate while someone with a high credit rating may be offered 21 percent.

The best policy regarding credit is

The term amortized refers to

If your only credit is a credit card with a $15 000 limit which you've had for ten years,and you keep your balance below $2000 and always pay at least the minimum due,you will have a good credit rating.

Revolving credit means

The item that receives the most weight in the BEACON credit scoring system is

A proposal to creditors is made by an insolvent debtor having difficulty meeting payments.Which of the following is True?

In evaluating a borrower's creditworthiness,income and expenses are carefully reviewed,but assets are not relevant.

The worst outcome from identity theft is that you could be responsible for charges someone made fraudulently on your credit card.

If not objected to by the creditors,a consumer proposal could enable someone with $50 000 in consumer debt to pay off $30 000 of it and have it removed from their credit bureau report.

Making extra payments on a loan