Question 1

To be eligible for the insolvency protection application called a consumer proposal

Accepted Answer

A)  you must be solvent and more than $200,000 in debt 
B)  you must be insolvent and more than $200,000 in debt 
C)  you must be insolvent and less than $75,000 in debt, excluding a mortgage on your principal residence 
D)  you must be solvent and less than $100,000 in debt 
E)  you must be insolvent and more than $100,000 in debt, excluding a mortgage on your principal residence 
A)  you must be solvent and more than $200,000 in debt 
B)  you must be insolvent and more than $200,000 in debt 
C)  you must be insolvent and less than $75,000 in debt, excluding a mortgage on your principal residence 
D)  you must be solvent and less than $100,000 in debt 
E)  you must be insolvent and more than $100,000 in debt, excluding a mortgage on your principal residence

Question 2

In a bankruptcy, a trustee

Accepted Answer

A)  is required to draw up a petition listing all of your assets and liabilities. 
B)  will have to pay a filing fee. 
C)  is appointed by a 'banker' 
D)  seeks absolution from alimony and child support payments. 
E)  repays educational loans first. 
A)  is required to draw up a petition listing all of your assets and liabilities. 
B)  will have to pay a filing fee. 
C)  is appointed by a 'banker' 
D)  seeks absolution from alimony and child support payments. 
E)  repays educational loans first.

Question 3

If creditors give you no credit for payments made during the billing period, this is called the

Accepted Answer

A)  APR method. 
B)  discount method. 
C)  previous balance method. 
D)  adjusted balance method. 
E)  average daily balance method. 
A)  APR method. 
B)  discount method. 
C)  previous balance method. 
D)  adjusted balance method. 
E)  average daily balance method.

Question 4

What is the EAR for a $100 loan when the interest is compounded monthly and the stated annual interest rate is 5.00 percent?

Accepted Answer

A)  5.00 percent 
B)  5.06 percent 
C)  5.12 percent 
D)  5.52 percent 
E)  5.92 percent 
A)  5.00 percent 
B)  5.06 percent 
C)  5.12 percent 
D)  5.52 percent 
E)  5.92 percent

Question 5

In order to minimize complications, all loans to and from family members should

Accepted Answer

A)  be in writing 
B)  state the interest rate, if there is an interest rate 
C)  include a repayment schedule 
D)  include the final payment date 
E)  all of these should be included 
A)  be in writing 
B)  state the interest rate, if there is an interest rate 
C)  include a repayment schedule 
D)  include the final payment date 
E)  all of these should be included

Question 6

The fairest method of calculating interest is the average daily balance method.

Accepted Answer

A) True 
 B)False

Question 7

Credit costs usually do not vary.

Accepted Answer

A) True 
 B)False

Question 8

Non-profit credit counseling services are sometimes provided by

Accepted Answer

A)  universities. 
B)  military bases. 
C)  credit unions. 
D)  provincial and federal authorities. 
E)  All of them may provide such services. 
A)  universities. 
B)  military bases. 
C)  credit unions. 
D)  provincial and federal authorities. 
E)  All of them may provide such services.

Question 9

Which of the following are signs of debt problems?

Accepted Answer

A)  foreclosure proceedings. 
B)  overdue payments. 
C)  approaching credit limits. 
D)  A and B are correct. 
E)  A, B and C are correct. 
A)  foreclosure proceedings. 
B)  overdue payments. 
C)  approaching credit limits. 
D)  A and B are correct. 
E)  A, B and C are correct.

Question 10

If you have trouble paying your bills,

Accepted Answer

A)  take a personal finance course. 
B)  turn to a company that claims to offer assistance in solving debt problems. 
C)  check with your local Better Business Bureau for help. 
D)  seek assistance from a collection agency. 
E)  try to solve the problem with your creditor. 
A)  take a personal finance course. 
B)  turn to a company that claims to offer assistance in solving debt problems. 
C)  check with your local Better Business Bureau for help. 
D)  seek assistance from a collection agency. 
E)  try to solve the problem with your creditor.

Question 11

Which of the following financing methods provides a float period?

Accepted Answer

A)  installment loan 
B)  lump-sum loan 
C)  credit card 
D)  home equity line of credit 
E)  a loan from a relative 
A)  installment loan 
B)  lump-sum loan 
C)  credit card 
D)  home equity line of credit 
E)  a loan from a relative

Question 12

Using parents or family members as lenders is the most risky type of loan method.

Accepted Answer

A) True 
 B)False

Question 13

According to many consumer organizations

Accepted Answer

A)  credit life insurance is the most important to have. 
B)  credit accident insurance is most important to have. 
C)  credit health insurance is the most important to have. 
D)  credit life insurance is not needed by most borrowers. 
E)  credit disability insurance is most important to have. 
A)  credit life insurance is the most important to have. 
B)  credit accident insurance is most important to have. 
C)  credit health insurance is the most important to have. 
D)  credit life insurance is not needed by most borrowers. 
E)  credit disability insurance is most important to have.

Question 14

Student loans to finance education beyond high school

Accepted Answer

A)  have rates that are subsidized by the Government of Canada 
B)  charge interest rates equal to commercial rates 
C)  must be repaid but interest is not charged if repaid in a timely manner 
D)  can be cancelled if you were dissatisfied with your education 
E)  are available to all full-and part-time post-secondary students regardless of financial need 
A)  have rates that are subsidized by the Government of Canada 
B)  charge interest rates equal to commercial rates 
C)  must be repaid but interest is not charged if repaid in a timely manner 
D)  can be cancelled if you were dissatisfied with your education 
E)  are available to all full-and part-time post-secondary students regardless of financial need

Question 15

Credit unions rarely offer the same range of consumer loans that banks and other financial institutions do.

Accepted Answer

A) True 
 B)False

Question 16

If you declare bankruptcy, you do not have to pay alimony, child support, or educational loans.

Accepted Answer

A) True 
 B)False

Question 17

What are the various methods used to calculate the credit card balance on which interest is calculated?

Accepted Answer

The various methods used to calculate th

Question 18

Credit unions often offer the same range of consumer loans that banks and other financial institutions do.

Accepted Answer

A) True 
 B)False

Question 19

If creditors add finance charges after subtracting payments made during the billing period, this is called the

Accepted Answer

A)  adjusted balance method. 
B)  discount method. 
C)  previous balance method. 
D)  APR method 
E)  average daily balance method. 
A)  adjusted balance method. 
B)  discount method. 
C)  previous balance method. 
D)  APR method 
E)  average daily balance method.

Question 20

What can you do if you are unable to meet your credit obligations?

Accepted Answer

If you cannot meet your credit obligatio

To be eligible for the insolvency protection application called a consumer proposal

In a bankruptcy, a trustee

If creditors give you no credit for payments made during the billing period, this is called the

What is the EAR for a $100 loan when the interest is compounded monthly and the stated annual interest rate is 5.00 percent?

In order to minimize complications, all loans to and from family members should

The fairest method of calculating interest is the average daily balance method.

Credit costs usually do not vary.

Non-profit credit counseling services are sometimes provided by

Which of the following are signs of debt problems?

If you have trouble paying your bills,

Which of the following financing methods provides a float period?

Using parents or family members as lenders is the most risky type of loan method.

According to many consumer organizations

Student loans to finance education beyond high school

Credit unions rarely offer the same range of consumer loans that banks and other financial institutions do.

If you declare bankruptcy, you do not have to pay alimony, child support, or educational loans.

What are the various methods used to calculate the credit card balance on which interest is calculated?

Credit unions often offer the same range of consumer loans that banks and other financial institutions do.

If creditors add finance charges after subtracting payments made during the billing period, this is called the

What can you do if you are unable to meet your credit obligations?

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

To be eligible for the insolvency protection application called a consumer proposal

In a bankruptcy, a trustee

If creditors give you no credit for payments made during the billing period, this is called the

What is the EAR for a $100 loan when the interest is compounded monthly and the stated annual interest rate is 5.00 percent?

In order to minimize complications, all loans to and from family members should

The fairest method of calculating interest is the average daily balance method.

Credit costs usually do not vary.

Non-profit credit counseling services are sometimes provided by

Which of the following are signs of debt problems?

If you have trouble paying your bills,

Which of the following financing methods provides a float period?

Using parents or family members as lenders is the most risky type of loan method.

According to many consumer organizations

Student loans to finance education beyond high school

Credit unions rarely offer the same range of consumer loans that banks and other financial institutions do.

If you declare bankruptcy, you do not have to pay alimony, child support, or educational loans.

What are the various methods used to calculate the credit card balance on which interest is calculated?

Credit unions often offer the same range of consumer loans that banks and other financial institutions do.

If creditors add finance charges after subtracting payments made during the billing period, this is called the

What can you do if you are unable to meet your credit obligations?

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