Question 1

Which of the following is a true statement about student loans?

Accepted Answer

A) All student loans are provided directly to the student. 
B) All student loans are provided to parents of students. 
C) Interest payments are often deferred until the students graduate and enter the workforce. 
D) Interest is tax-free to those in all income levels. 
A) All student loans are provided directly to the student. 
B) All student loans are provided to parents of students. 
C) Interest payments are often deferred until the students graduate and enter the workforce. 
D) Interest is tax-free to those in all income levels.

Question 2

In general,you will receive more favorable terms on a secured loan than on an unsecured loan.

Accepted Answer

A) True 
 B)False

Question 3

In determining the amount of your loan,you should ask for about 20% more than you need in order to give yourself financial flexibility in the future.

Accepted Answer

A) True 
 B)False

Question 4

Personal loans include which of the following?

Accepted Answer

A) Car loans 
B) Credit card advance payments 
C) Home equity loans 
D) Both A and C 
A) Car loans 
B) Credit card advance payments 
C) Home equity loans 
D) Both A and C

Question 5

When applying for a personal loan,you will be required to fill out a loan application but you will seldom need a personal balance sheet or a personal cash flow statement.

Accepted Answer

A) True 
 B)False

Question 6

Which is true regarding resale value of cars?

Accepted Answer

A) You can't really determine the resale value very accurately before you buy a car. 
B) You are always better off to buy a higher priced car with a greater resale value. 
C) You are always better off to buy a lower priced car with a lower resale value. 
D) Resale values can be determined from the Internet and other sources and should be a consideration in buying a car. 
A) You can't really determine the resale value very accurately before you buy a car. 
B) You are always better off to buy a higher priced car with a greater resale value. 
C) You are always better off to buy a lower priced car with a lower resale value. 
D) Resale values can be determined from the Internet and other sources and should be a consideration in buying a car.

Question 7

In making the purchase versus leasing decision,it is important to remember that

Accepted Answer

A) dealers may impose an additional mileage cost. 
B) leasing is less risky than a purchase. 
C) leasing is less expensive that a purchase. 
D) you won't be required to pay maintenance costs on the leased car. 
A) dealers may impose an additional mileage cost. 
B) leasing is less risky than a purchase. 
C) leasing is less expensive that a purchase. 
D) you won't be required to pay maintenance costs on the leased car.

Question 8

Personal preferences for a car include all of the following except

Accepted Answer

A) considering what kind of car you really want,regardless of what you need. 
B) the size of the car. 
C) the price of the car. 
D) the size of the engine and fuel economy. 
A) considering what kind of car you really want,regardless of what you need. 
B) the size of the car. 
C) the price of the car. 
D) the size of the engine and fuel economy.

Question 9

The advantage to financing a car for a long period of time (of up to seven years)is

Accepted Answer

A) you will build equity in the car faster. 
B) the car will be worth more by the time you pay off the loan. 
C) your monthly payment will be lower. 
D) you will be able to sell the car before you pay off the loan and have money to pocket. 
A) you will build equity in the car faster. 
B) the car will be worth more by the time you pay off the loan. 
C) your monthly payment will be lower. 
D) you will be able to sell the car before you pay off the loan and have money to pocket.

Question 10

Home equity is defined as the market value of the home less the debt owed on the home.

Accepted Answer

A) True 
 B)False

Question 11

In the past you have purchased cars that you have driven for over 10 years or more.The mileage on these vehicles usually exceeded 100,000 and therefore you just give them to one of your teenage nieces/nephews or your grandchildren.Based on this history,your primary financial selection criteria will be

Accepted Answer

A) resale value. 
B) financing rate. 
C) repair expense. 
D) personal preference. 
A) resale value. 
B) financing rate. 
C) repair expense. 
D) personal preference.

Question 12

You have a home with a market value of $200,000.Your total equity in the home is $40,000.The maximum home equity loan available if the bank will loan 80 percent based on equity invested is
(a)$28,000.
(b)$32,000.
(c)$112,000.
(d)$128,000.

Accepted Answer

(b)$40,000

Question 13

The loan contract identifies all but which of the following?

Accepted Answer

A) Credit score 
B) Amount of the loan 
C) Interest rate 
D) Loan repayment schedule 
A) Credit score 
B) Amount of the loan 
C) Interest rate 
D) Loan repayment schedule

Question 14

What should you not consider when selecting a vehicle?

Accepted Answer

A) Personal preferences 
B) Insurance costs 
C) All parts are American-made 
D) Resale value 
A) Personal preferences 
B) Insurance costs 
C) All parts are American-made 
D) Resale value

Question 15

Disadvantages of leasing a vehicle include all of the following except

Accepted Answer

A) no equity in the car. 
B) cost of finding a buyer for the car at the termination of the lease. 
C) responsibility for maintenance costs. 
D) additional charges beyond the monthly lease payments. 
A) no equity in the car. 
B) cost of finding a buyer for the car at the termination of the lease. 
C) responsibility for maintenance costs. 
D) additional charges beyond the monthly lease payments.

Question 16

All of the following are true of a home equity loan except it

Accepted Answer

A) provides you a line of credit. 
B) is a good way to combine different kinds of debt. 
C) may be tax deductible. 
D) allows you to borrow up to 80% of the market value of your home. 
A) provides you a line of credit. 
B) is a good way to combine different kinds of debt. 
C) may be tax deductible. 
D) allows you to borrow up to 80% of the market value of your home.

Question 17

If you always drive cars many miles and keep them for 10 years,it would probable be best to

Accepted Answer

A) lease a new car. 
B) lease a used car. 
C) buy a new car. 
D) buy a used car. 
A) lease a new car. 
B) lease a used car. 
C) buy a new car. 
D) buy a used car.

Question 18

A loan provided to finance the expenses of a person pursuing a college degree is called a(n)________.

Accepted Answer

The answer of A loan provided to finance the expenses...

Question 19

Shopping for automobile insurance should begin immediately after you close the deal on the car.

Accepted Answer

A) True 
 B)False

Question 20

Even though you don't use the proceeds to improve your home,the interest on a home equity loan is deductible from your federal income taxes.

Accepted Answer

A) True 
 B)False

Which of the following is a true statement about student loans?

In general,you will receive more favorable terms on a secured loan than on an unsecured loan.

In determining the amount of your loan,you should ask for about 20% more than you need in order to give yourself financial flexibility in the future.

Personal loans include which of the following?

When applying for a personal loan,you will be required to fill out a loan application but you will seldom need a personal balance sheet or a personal cash flow statement.

Which is true regarding resale value of cars?

In making the purchase versus leasing decision,it is important to remember that

Personal preferences for a car include all of the following except

The advantage to financing a car for a long period of time (of up to seven years)is

Home equity is defined as the market value of the home less the debt owed on the home.

You have a home with a market value of $200,000.Your total equity in the home is $40,000.The maximum home equity loan available if the bank will loan 80 percent based on equity invested is (a)$28,000. (b)$32,000. (c)$112,000. (d)$128,000.

The loan contract identifies all but which of the following?

What should you not consider when selecting a vehicle?

Disadvantages of leasing a vehicle include all of the following except

All of the following are true of a home equity loan except it

If you always drive cars many miles and keep them for 10 years,it would probable be best to

A loan provided to finance the expenses of a person pursuing a college degree is called a(n)________.

Shopping for automobile insurance should begin immediately after you close the deal on the car.

Even though you don't use the proceeds to improve your home,the interest on a home equity loan is deductible from your federal income taxes.

Overview of a Financial Plan

Planning With Personal Financial Statements

Applying Time Value Concepts

Using Tax Concepts for Planning

Banking and Interest Rates

Managing Your Money

Assessing and Securing Your Credit

Managing Your Credit

Purchasing and Financing a Home

Auto and Homeowners Insurance

Health and Disability Insurance

Life Insurance

Investing Fundamentals

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Asset Allocation

Retirement Planning

Estate Planning

Integrating the Components of a Financial Plan

Filters

Exam 9: Personal Loans

Which of the following is a true statement about student loans?

In general,you will receive more favorable terms on a secured loan than on an unsecured loan.

In determining the amount of your loan,you should ask for about 20% more than you need in order to give yourself financial flexibility in the future.

Personal loans include which of the following?

When applying for a personal loan,you will be required to fill out a loan application but you will seldom need a personal balance sheet or a personal cash flow statement.

Which is true regarding resale value of cars?

In making the purchase versus leasing decision,it is important to remember that

Personal preferences for a car include all of the following except

The advantage to financing a car for a long period of time (of up to seven years)is

Home equity is defined as the market value of the home less the debt owed on the home.

You have a home with a market value of $200,000.Your total equity in the home is $40,000.The maximum home equity loan available if the bank will loan 80 percent based on equity invested is (a)$28,000. (b)$32,000. (c)$112,000. (d)$128,000.

The loan contract identifies all but which of the following?

What should you not consider when selecting a vehicle?

Disadvantages of leasing a vehicle include all of the following except

All of the following are true of a home equity loan except it

If you always drive cars many miles and keep them for 10 years,it would probable be best to

A loan provided to finance the expenses of a person pursuing a college degree is called a(n)________.

Shopping for automobile insurance should begin immediately after you close the deal on the car.

Even though you don't use the proceeds to improve your home,the interest on a home equity loan is deductible from your federal income taxes.

Overview of a Financial Plan

Planning With Personal Financial Statements

Applying Time Value Concepts

Using Tax Concepts for Planning

Banking and Interest Rates

Managing Your Money

Assessing and Securing Your Credit

Managing Your Credit

Purchasing and Financing a Home

Auto and Homeowners Insurance

Health and Disability Insurance

Life Insurance

Investing Fundamentals

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Asset Allocation

Retirement Planning

Estate Planning

Integrating the Components of a Financial Plan

Filters