Question 1

Your only choice in declaring personal bankruptcy is through an assignment in bankruptcy.

Accepted Answer

A) True 
 B)False

Question 2

The longer the term of the loan the greater the amount of interest charges that must be paid.

Accepted Answer

A) True 
 B)False

Question 3

If you borrow $100 at 12 percent annual interest and repay it in one lump sum at the end of one year, you will have to pay

Accepted Answer

A)  $12. 
B)  $100. 
C)  $112. 
D)  $1,200. 
E)  $8.33. 
A)  $12. 
B)  $100. 
C)  $112. 
D)  $1,200. 
E)  $8.33.

Question 4

The most commonly purchased type of credit insurance is credit life insurance.

Accepted Answer

A) True 
 B)False

Question 5

The Annual Percentage Rate is the percentage cost of credit on a yearly basis.

Accepted Answer

A) True 
 B)False

Question 6

Increasingly, the bankruptcy debtor is likely to be female.

Accepted Answer

A) True 
 B)False

Question 7

There are no costs involved in filing for a bankruptcy or submitting a consumer proposal.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

Credit life insurance provides for the repayment of the loan if the borrower dies.

Accepted Answer

A) True 
 B)False

Question 10

You want to borrow $100 for a year at an annual rate of 8% compounded semi-annually. The effective annual rate of the loan is 8.04 percent.

Accepted Answer

A) True 
 B)False

Question 11

Credit counselors will aid families by

Accepted Answer

A)  setting up a budget for them. 
B)  paying off their loans. 
C)  providing free basic necessities. 
D)  providing one month free shelter. 
E)  relocating them in less expensive areas. 
A)  setting up a budget for them. 
B)  paying off their loans. 
C)  providing free basic necessities. 
D)  providing one month free shelter. 
E)  relocating them in less expensive areas.

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

What are two key concepts to keep in mind as you shop for credit?

Accepted Answer

Two key concepts are the finan

Question 14

Which of the following allows a debtor with a regular income to extinguish his or her debts from future earnings or other property over a period of time?

Accepted Answer

A)  Assignment in bankruptcy 
B)  Frequent payment plan 
C)  Consumer proposal 
D)  A and B are correct 
E)  A, B and C are correct 
A)  Assignment in bankruptcy 
B)  Frequent payment plan 
C)  Consumer proposal 
D)  A and B are correct 
E)  A, B and C are correct

Question 15

Obtaining credit may be easier for people who file a bankruptcy rather than a consumer proposal.

Accepted Answer

A) True 
 B)False

Question 16

Lines of credit usually charge a variable interest rate, tied to the lender's prime rate.

Accepted Answer

A) True 
 B)False

Question 17

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 18

Credit disability insurance can be used when the borrower is unable to pay back a loan in a case of illness or injury.

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

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

Accepted Answer

A) True 
 B)False

Your only choice in declaring personal bankruptcy is through an assignment in bankruptcy.

The longer the term of the loan the greater the amount of interest charges that must be paid.

If you borrow $100 at 12 percent annual interest and repay it in one lump sum at the end of one year, you will have to pay

The most commonly purchased type of credit insurance is credit life insurance.

The Annual Percentage Rate is the percentage cost of credit on a yearly basis.

Increasingly, the bankruptcy debtor is likely to be female.

There are no costs involved in filing for a bankruptcy or submitting a consumer proposal.

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

Credit life insurance provides for the repayment of the loan if the borrower dies.

You want to borrow $100 for a year at an annual rate of 8% compounded semi-annually. The effective annual rate of the loan is 8.04 percent.

Credit counselors will aid families by

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

What are two key concepts to keep in mind as you shop for credit?

Which of the following allows a debtor with a regular income to extinguish his or her debts from future earnings or other property over a period of time?

Obtaining credit may be easier for people who file a bankruptcy rather than a consumer proposal.

Lines of credit usually charge a variable interest rate, tied to the lender's prime rate.

Most people who are unable to manage their debts are:

Credit disability insurance can be used when the borrower is unable to pay back a loan in a case of illness or injury.

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.

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

Personal Financial Planning: An Introduction

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

The Banking Services of Financial Institutions

Introduction to Consumer Credit

The Finances of Housing

Home and Automobile Insurance

Life, Health, and Disability Insurance

Fundamentals of Investing

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Retirement Planning

Estate Planning

Filters

Exam 6: Choosing a Source Credit: the Costs of Credit Alternatives

Your only choice in declaring personal bankruptcy is through an assignment in bankruptcy.

The longer the term of the loan the greater the amount of interest charges that must be paid.

If you borrow $100 at 12 percent annual interest and repay it in one lump sum at the end of one year, you will have to pay

The most commonly purchased type of credit insurance is credit life insurance.

The Annual Percentage Rate is the percentage cost of credit on a yearly basis.

Increasingly, the bankruptcy debtor is likely to be female.

There are no costs involved in filing for a bankruptcy or submitting a consumer proposal.

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

Credit life insurance provides for the repayment of the loan if the borrower dies.

You want to borrow $100 for a year at an annual rate of 8% compounded semi-annually. The effective annual rate of the loan is 8.04 percent.

Credit counselors will aid families by

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

What are two key concepts to keep in mind as you shop for credit?

Which of the following allows a debtor with a regular income to extinguish his or her debts from future earnings or other property over a period of time?

Obtaining credit may be easier for people who file a bankruptcy rather than a consumer proposal.

Lines of credit usually charge a variable interest rate, tied to the lender's prime rate.

Most people who are unable to manage their debts are:

Credit disability insurance can be used when the borrower is unable to pay back a loan in a case of illness or injury.

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.

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

Personal Financial Planning: An Introduction

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

The Banking Services of Financial Institutions

Introduction to Consumer Credit

The Finances of Housing

Home and Automobile Insurance

Life, Health, and Disability Insurance

Fundamentals of Investing

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Retirement Planning

Estate Planning

Filters