Question 1

Making extra payments on a loan does all except which of the following?

Accepted Answer

A) Reduces the total amount of interest paid 
B) Gives you extra income for living expenses 
C) Reduces the maturity of the loan 
D) Helps assure your good credit rating 
A) Reduces the total amount of interest paid 
B) Gives you extra income for living expenses 
C) Reduces the maturity of the loan 
D) Helps assure your good credit rating

Question 2

Advantages to leasing a car instead of buying one are that you need less of a down payment and that you do not need to worry about finding a buyer for your car when the lease is over.

Accepted Answer

A) True 
 B)False

Question 3

Auto loan Internet sites are a good source to estimate the maximum amount you can borrow,based on financial information you provide.

Accepted Answer

A) True 
 B)False

Question 4

In 1969,the Truth-in-Lending Act was enacted.What does APR represent and what is the purpose of the Act?

Accepted Answer

Lenders are required to specify a standa

Question 5

A loan based on the difference between the appraised value of your house and the balance due on your mortgage is called a(n)________ loan.

Accepted Answer

The answer of A loan based on the difference between...

Question 6

A personal loan is different from a credit card in that it is normally used to finance one large purchase.

Accepted Answer

A) True 
 B)False

Question 7

Because the market value of homes may decline,lenders do not like to lend the full amount of the equity when extending a home equity loan.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following items would a personal loan be a better option than a credit card for a college student?

Accepted Answer

A) Car maintenance expense 
B) Tuition and dorm fees 
C) Trips home for the holidays 
D) Tickets to sporting events 
A) Car maintenance expense 
B) Tuition and dorm fees 
C) Trips home for the holidays 
D) Tickets to sporting events

Question 9

Describe how personal loans affect your personal budget,income statement,and balance sheet.Has credit allowed you to expand your purchases?

Accepted Answer

This is a basic subjective answer.Intere

Question 10

Which of the following is not an interest rate calculation method discussed in the text?

Accepted Answer

A) Annual percentage rate or APR 
B) Sum of the digits interest 
C) Simple interest 
D) Add-on interest 
A) Annual percentage rate or APR 
B) Sum of the digits interest 
C) Simple interest 
D) Add-on interest

Question 11

It is usually better to lease a vehicle than buy one,since you are not responsible for the repairs or maintenance on a leased car.

Accepted Answer

A) True 
 B)False

Question 12

________ is a method of computing interest based on the existing principal amount of the loan.

Accepted Answer

The answer of ________ is a method of computing interest...

Question 13

List four components of a loan contract.

Accepted Answer

Amount of the loan,interest ra

Question 14

You obtain a loan of $3,000 based on simple interest with an annual interest rate of 12 percent.At the end of the first month,the interest owed on $3,000 is
(a)$30.
(b)$36.
(c)$300.
(d)$360.

Accepted Answer

(a)($3,000

Question 15

The cost of leasing a car versus purchasing one

Accepted Answer

A) is more. 
B) is less. 
C) is about the same. 
D) varies depending on a multitude of factors. 
A) is more. 
B) is less. 
C) is about the same. 
D) varies depending on a multitude of factors.

Making extra payments on a loan does all except which of the following?

Advantages to leasing a car instead of buying one are that you need less of a down payment and that you do not need to worry about finding a buyer for your car when the lease is over.

Auto loan Internet sites are a good source to estimate the maximum amount you can borrow,based on financial information you provide.

In 1969,the Truth-in-Lending Act was enacted.What does APR represent and what is the purpose of the Act?

A loan based on the difference between the appraised value of your house and the balance due on your mortgage is called a(n)________ loan.

A personal loan is different from a credit card in that it is normally used to finance one large purchase.

Because the market value of homes may decline,lenders do not like to lend the full amount of the equity when extending a home equity loan.

Which of the following items would a personal loan be a better option than a credit card for a college student?

Describe how personal loans affect your personal budget,income statement,and balance sheet.Has credit allowed you to expand your purchases?

Which of the following is not an interest rate calculation method discussed in the text?

It is usually better to lease a vehicle than buy one,since you are not responsible for the repairs or maintenance on a leased car.

________ is a method of computing interest based on the existing principal amount of the loan.

List four components of a loan contract.

You obtain a loan of $3,000 based on simple interest with an annual interest rate of 12 percent.At the end of the first month,the interest owed on $3,000 is (a)$30. (b)$36. (c)$300. (d)$360.

The cost of leasing a car versus purchasing one

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

Making extra payments on a loan does all except which of the following?

Advantages to leasing a car instead of buying one are that you need less of a down payment and that you do not need to worry about finding a buyer for your car when the lease is over.

Auto loan Internet sites are a good source to estimate the maximum amount you can borrow,based on financial information you provide.

In 1969,the Truth-in-Lending Act was enacted.What does APR represent and what is the purpose of the Act?

A loan based on the difference between the appraised value of your house and the balance due on your mortgage is called a(n)________ loan.

A personal loan is different from a credit card in that it is normally used to finance one large purchase.

Because the market value of homes may decline,lenders do not like to lend the full amount of the equity when extending a home equity loan.

Which of the following items would a personal loan be a better option than a credit card for a college student?

Describe how personal loans affect your personal budget,income statement,and balance sheet.Has credit allowed you to expand your purchases?

Which of the following is not an interest rate calculation method discussed in the text?

It is usually better to lease a vehicle than buy one,since you are not responsible for the repairs or maintenance on a leased car.

________ is a method of computing interest based on the existing principal amount of the loan.

List four components of a loan contract.

You obtain a loan of $3,000 based on simple interest with an annual interest rate of 12 percent.At the end of the first month,the interest owed on $3,000 is (a)$30. (b)$36. (c)$300. (d)$360.

The cost of leasing a car versus purchasing one

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