Question 1

The question "Will you repay the loan? " relates to

Accepted Answer

A)  Character. 
B)  Capacity. 
C)  Capital. 
D)  Collateral. 
E)  Conditions. 
A)  Character. 
B)  Capacity. 
C)  Capital. 
D)  Collateral. 
E)  Conditions.

Question 2

Under Chapter 7 of the U.S.bankruptcy code,

Accepted Answer

A)  All debts are forgiven. 
B)  Alimony and child support debts are released. 
C)  Certain assets receive some protection. 
D)  Taxes and fines no longer need to be paid. 
E)  Debt arising from driving while intoxicated is forgiven. 
A)  All debts are forgiven. 
B)  Alimony and child support debts are released. 
C)  Certain assets receive some protection. 
D)  Taxes and fines no longer need to be paid. 
E)  Debt arising from driving while intoxicated is forgiven.

Question 3

If a loan is being paid in installments instead of all at the end of the loan period,the actual rate of interest

Accepted Answer

A)  Will be lower than the stated rate. 
B)  Will be the same as the stated rate. 
C)  Will be higher than the stated rate. 
D)  Will be unrelated to the stated rate. 
E)  Cannot be determined without knowing the length of the loan period. 
A)  Will be lower than the stated rate. 
B)  Will be the same as the stated rate. 
C)  Will be higher than the stated rate. 
D)  Will be unrelated to the stated rate. 
E)  Cannot be determined without knowing the length of the loan period.

Question 4

When used effectively,credit can help a consumer have more and enjoy more.

Accepted Answer

A) True 
 B)False

Question 5

The debt-to-equity ratio is calculated by dividing your total liabilities,including your mortgage,by your net worth.

Accepted Answer

A) True 
 B)False

Question 6

In the five Cs of credit,capital refers to the borrower's ability to pay additional debts.

Accepted Answer

A) True 
 B)False

Question 7

The amount of interest paid is independent of the length of the loan.

Accepted Answer

A) True 
 B)False

Question 8

Explain redlining.

Accepted Answer

Redlining is a practice that i

Question 9

During the grace period,finance charges are assessed at only half the normal rate.

Accepted Answer

A) True 
 B)False

Question 10

In the five Cs of credit,character refers to the borrower's trustworthiness and stability.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following questions is NOT needed before deciding how and when to make a major purchase?

Accepted Answer

A)  Do I have the cash I need for the down payment? 
B)  Does the purchase fit my budget? 
C)  Could I postpone the purchase? 
D)  Could I use the credit I need for this purchase in some better way? 
E)  All of these are valid questions to ask. 
A)  Do I have the cash I need for the down payment? 
B)  Does the purchase fit my budget? 
C)  Could I postpone the purchase? 
D)  Could I use the credit I need for this purchase in some better way? 
E)  All of these are valid questions to ask.

Question 12

A secured credit card is most appropriate for someone with a strong credit background.

Accepted Answer

A) True 
 B)False

Question 13

If you think that your identity has been stolen,the Federal Trade Commission recommends that you take three steps immediately.What are those steps?

Accepted Answer

1.Contact the credit

Question 14

A cash advance

Accepted Answer

A)  Increases a borrower's credit limit. 
B)  Is the cheapest way to obtain money when away from home. 
C)  Usually is obtained from a bank. 
D)  Accrues interest charges beginning the day the cash advance is made. 
E)  Is tax-deductible. 
A)  Increases a borrower's credit limit. 
B)  Is the cheapest way to obtain money when away from home. 
C)  Usually is obtained from a bank. 
D)  Accrues interest charges beginning the day the cash advance is made. 
E)  Is tax-deductible.

Question 15

Open-end credit consists of loans made on a continuous basis with periodic bills for at least partial payment.

Accepted Answer

A) True 
 B)False

Question 16

A credit report includes

Accepted Answer

A)  Credit history. 
B)  Assumptions made by credit rating agencies. 
C)  Credit score. 
D)  Credit expectations. 
E)  All of these. 
A)  Credit history. 
B)  Assumptions made by credit rating agencies. 
C)  Credit score. 
D)  Credit expectations. 
E)  All of these.

Question 17

The easiest loans to obtain are also the least expensive.

Accepted Answer

A) True 
 B)False

Question 18

Molly purchased a $1,500 dishwasher from Best Appliances.She will make 12 equal payments over the next year to pay for it.She is using

Accepted Answer

A)  Closed-end credit. 
B)  Open-end credit. 
C)  Revolving check credit. 
D)  A line of credit. 
E)  None of these. 
A)  Closed-end credit. 
B)  Open-end credit. 
C)  Revolving check credit. 
D)  A line of credit. 
E)  None of these.

Question 19

The first sign of stolen identity might be that you get bills for a credit card account that you never opened.

Accepted Answer

A) True 
 B)False

Question 20

What makes a home equity loan different from other loans?

Accepted Answer

A home equity loan is differen

The question "Will you repay the loan? " relates to

Under Chapter 7 of the U.S.bankruptcy code,

If a loan is being paid in installments instead of all at the end of the loan period,the actual rate of interest

When used effectively,credit can help a consumer have more and enjoy more.

The debt-to-equity ratio is calculated by dividing your total liabilities,including your mortgage,by your net worth.

In the five Cs of credit,capital refers to the borrower's ability to pay additional debts.

The amount of interest paid is independent of the length of the loan.

Explain redlining.

During the grace period,finance charges are assessed at only half the normal rate.

In the five Cs of credit,character refers to the borrower's trustworthiness and stability.

Which of the following questions is NOT needed before deciding how and when to make a major purchase?

A secured credit card is most appropriate for someone with a strong credit background.

If you think that your identity has been stolen,the Federal Trade Commission recommends that you take three steps immediately.What are those steps?

A cash advance

Open-end credit consists of loans made on a continuous basis with periodic bills for at least partial payment.

A credit report includes

The easiest loans to obtain are also the least expensive.

Molly purchased a $1,500 dishwasher from Best Appliances.She will make 12 equal payments over the next year to pay for it.She is using

The first sign of stolen identity might be that you get bills for a credit card account that you never opened.

What makes a home equity loan different from other loans?

Personal Financial Planning in Action

Money Management Skills

Taxes in Your Financial Plan

Financial Services: Savings Plans and Payment Account

Consumer Purchasing Strategies and Wise Buying of Motor Vehicles

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

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Exam 5: Consumer Credit: Advantages, Dis-Advantages, Sources, and Costs

The question "Will you repay the loan? " relates to

Under Chapter 7 of the U.S.bankruptcy code,

If a loan is being paid in installments instead of all at the end of the loan period,the actual rate of interest

When used effectively,credit can help a consumer have more and enjoy more.

The debt-to-equity ratio is calculated by dividing your total liabilities,including your mortgage,by your net worth.

In the five Cs of credit,capital refers to the borrower's ability to pay additional debts.

The amount of interest paid is independent of the length of the loan.

Explain redlining.

During the grace period,finance charges are assessed at only half the normal rate.

In the five Cs of credit,character refers to the borrower's trustworthiness and stability.

Which of the following questions is NOT needed before deciding how and when to make a major purchase?

A secured credit card is most appropriate for someone with a strong credit background.

If you think that your identity has been stolen,the Federal Trade Commission recommends that you take three steps immediately.What are those steps?

A cash advance

Open-end credit consists of loans made on a continuous basis with periodic bills for at least partial payment.

A credit report includes

The easiest loans to obtain are also the least expensive.

Molly purchased a $1,500 dishwasher from Best Appliances.She will make 12 equal payments over the next year to pay for it.She is using

The first sign of stolen identity might be that you get bills for a credit card account that you never opened.

What makes a home equity loan different from other loans?

Personal Financial Planning in Action

Money Management Skills

Taxes in Your Financial Plan

Financial Services: Savings Plans and Payment Account

Consumer Purchasing Strategies and Wise Buying of Motor Vehicles

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

Filters