Question 1

According to consumer affairs experts, one of the nation's main family financial problems is

Accepted Answer

A)  that families don't prepare their budgets. 
B)  over-indebtedness. 
C)  over consumption. 
D)  buying too much insurance. 
E)  unemployment. 
A)  that families don't prepare their budgets. 
B)  over-indebtedness. 
C)  over consumption. 
D)  buying too much insurance. 
E)  unemployment.

Question 2

A variable interest rate is based on fluctuating rates in the banking system, such as the prime rate.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following may indicate potential debt problems?

Accepted Answer

A)  paying only the minimum balance each month. 
B)  always borrowing to make it to next payday. 
C)  your wages have been garnished to pay for debt. 
D)  your utility company cuts off service because your bills are unpaid. 
E)  paying only the minimum balance each month, always borrowing to make it to next payday, your wages have been garnished to pay for debt, and your utility company cuts off service because your bills are unpaid. 
A)  paying only the minimum balance each month. 
B)  always borrowing to make it to next payday. 
C)  your wages have been garnished to pay for debt. 
D)  your utility company cuts off service because your bills are unpaid. 
E)  paying only the minimum balance each month, always borrowing to make it to next payday, your wages have been garnished to pay for debt, and your utility company cuts off service because your bills are unpaid.

Question 4

Student loans to finance education beyond high school

Accepted Answer

A)  are available from the Government of Canada 
B)  charge lower interest rates than commercial rates 
C)  must be repaid with interest, just like car loans and mortgages 
D)  cannot be cancelled because you were dissatisfied with your education 
E)  all of the choices are correct 
A)  are available from the Government of Canada 
B)  charge lower interest rates than commercial rates 
C)  must be repaid with interest, just like car loans and mortgages 
D)  cannot be cancelled because you were dissatisfied with your education 
E)  all of the choices are correct

Question 5

Consumer credit counseling services are basically concerned with

Accepted Answer

A)  lending the money to destitute people. 
B)  giving debtors food and shelter. 
C)  helping destitute debtors to relocate in less expensive areas. 
D)  preventing and solving the problems related to credit overextension. 
E)  getting you more credit 
A)  lending the money to destitute people. 
B)  giving debtors food and shelter. 
C)  helping destitute debtors to relocate in less expensive areas. 
D)  preventing and solving the problems related to credit overextension. 
E)  getting you more credit

Question 6

You have two choices in declaring personal bankruptcy: A consumer proposal or declaration through an assignment in bankruptcy.

Accepted Answer

A) True 
 B)False

Question 7

An increasing number of bankruptcy filers are well-educated middle-class baby boomers.

Accepted Answer

A) True 
 B)False

Question 8

What is monthly payment for a $20,000 amortized loan to purchase a car payable over 3 years at an annual interest rate of 6%?

Accepted Answer

A)  $387 
B)  $556 
C)  $578 
D)  $608 
E)  $588 
A)  $387 
B)  $556 
C)  $578 
D)  $608 
E)  $588

Question 9

Referring to over indebtedness as one of the nation's main family financial problems, an expert on consumer affairs lists 7 frequent reasons for indebtedness. List and briefly describe these.

Accepted Answer

1. Emotional problems, such as the need

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

If you want to take advantage of the interest-free period on your credit card, you must pay your bill in full every month.

Accepted Answer

A) True 
 B)False

Question 12

Inflation decreases the purchasing power of money.

Accepted Answer

A) True 
 B)False

Question 13

For some debtors, bankruptcy has become an acceptable tool of credit management.

Accepted Answer

A) True 
 B)False

Question 14

What is the EAR for a $100 loan when the interest is compounded monthly and the stated annual interest rate is 7 percent?

Accepted Answer

A)  7.0 percent 
B)  8.0 percent 
C)  7.23 percent 
D)  12.0 percent 
E)  16.0 percent 
A)  7.0 percent 
B)  8.0 percent 
C)  7.23 percent 
D)  12.0 percent 
E)  16.0 percent

Question 15

The most commonly purchased type of credit insurance is

Accepted Answer

A)  credit life insurance. 
B)  credit accident insurance. 
C)  credit health insurance. 
D)  credit property insurance. 
E)  credit disability insurance. 
A)  credit life insurance. 
B)  credit accident insurance. 
C)  credit health insurance. 
D)  credit property insurance. 
E)  credit disability insurance.

Question 16

Inflation increases the purchasing power of money.

Accepted Answer

A) True 
 B)False

Question 17

The fairest method of calculating the interest is the adjusted balance method.

Accepted Answer

A) True 
 B)False

Question 18

You can often obtain medium-priced loans from

Accepted Answer

A)  parents or family members. 
B)  American Express. 
C)  commercial banks and credit unions. 
D)  finance companies. 
E)  retailers. 
A)  parents or family members. 
B)  American Express. 
C)  commercial banks and credit unions. 
D)  finance companies. 
E)  retailers.

Question 19

A float refers to:

Accepted Answer

A)  an interest charged for only a few days. 
B)  something one enjoys in a parade. 
C)  a home equity loan. 
D)  a period when no interest is charged. 
E)  a lump-sum loan from a credit union. 
A)  an interest charged for only a few days. 
B)  something one enjoys in a parade. 
C)  a home equity loan. 
D)  a period when no interest is charged. 
E)  a lump-sum loan from a credit union.

Question 20

Membership in credit unions has been

Accepted Answer

A)  growing steadily. 
B)  declining gradually. 
C)  static. 
D)  restricted by the Tax Act. 
E)  restricted by provincial laws. 
A)  growing steadily. 
B)  declining gradually. 
C)  static. 
D)  restricted by the Tax Act. 
E)  restricted by provincial laws.

According to consumer affairs experts, one of the nation's main family financial problems is

A variable interest rate is based on fluctuating rates in the banking system, such as the prime rate.

Which of the following may indicate potential debt problems?

Student loans to finance education beyond high school

Consumer credit counseling services are basically concerned with

You have two choices in declaring personal bankruptcy: A consumer proposal or declaration through an assignment in bankruptcy.

An increasing number of bankruptcy filers are well-educated middle-class baby boomers.

What is monthly payment for a $20,000 amortized loan to purchase a car payable over 3 years at an annual interest rate of 6%?

Referring to over indebtedness as one of the nation's main family financial problems, an expert on consumer affairs lists 7 frequent reasons for indebtedness. List and briefly describe these.

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

If you want to take advantage of the interest-free period on your credit card, you must pay your bill in full every month.

Inflation decreases the purchasing power of money.

For some debtors, bankruptcy has become an acceptable tool of credit management.

What is the EAR for a $100 loan when the interest is compounded monthly and the stated annual interest rate is 7 percent?

The most commonly purchased type of credit insurance is

Inflation increases the purchasing power of money.

The fairest method of calculating the interest is the adjusted balance method.

You can often obtain medium-priced loans from

A float refers to:

Membership in credit unions has been

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

According to consumer affairs experts, one of the nation's main family financial problems is

A variable interest rate is based on fluctuating rates in the banking system, such as the prime rate.

Which of the following may indicate potential debt problems?

Student loans to finance education beyond high school

Consumer credit counseling services are basically concerned with

You have two choices in declaring personal bankruptcy: A consumer proposal or declaration through an assignment in bankruptcy.

An increasing number of bankruptcy filers are well-educated middle-class baby boomers.

What is monthly payment for a $20,000 amortized loan to purchase a car payable over 3 years at an annual interest rate of 6%?

Referring to over indebtedness as one of the nation's main family financial problems, an expert on consumer affairs lists 7 frequent reasons for indebtedness. List and briefly describe these.

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

If you want to take advantage of the interest-free period on your credit card, you must pay your bill in full every month.

Inflation decreases the purchasing power of money.

For some debtors, bankruptcy has become an acceptable tool of credit management.

What is the EAR for a $100 loan when the interest is compounded monthly and the stated annual interest rate is 7 percent?

The most commonly purchased type of credit insurance is

Inflation increases the purchasing power of money.

The fairest method of calculating the interest is the adjusted balance method.

You can often obtain medium-priced loans from

A float refers to:

Membership in credit unions has been

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