Question 1

Advantages of leasing a vehicle include all of the following except

Accepted Answer

A)  no substantial down payment. 
B)  don't have to worry about resale of the car when you are finished with it. 
C)  less hassle than purchasing a vehicle. 
D)  no maintenance costs. 
A)  no substantial down payment. 
B)  don't have to worry about resale of the car when you are finished with it. 
C)  less hassle than purchasing a vehicle. 
D)  no maintenance costs.

Question 2

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 3

There are limits on how much a student can borrow through federal student loans,so many students also have to obtain private loans from financial institutions.

Accepted Answer

A) True 
 B)False

Question 4

One alternative to payday loans is to avoid borrowing until you have the funds to spend.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is the most common source of financing for personal loans?

Accepted Answer

A)  Family and friends 
B)  Financial institutions 
C)  Peer-to-peer lending 
D)  Sales finance companies 
A)  Family and friends 
B)  Financial institutions 
C)  Peer-to-peer lending 
D)  Sales finance companies

Question 6

What does the Truth-in-Lending Act of 1969 require lenders to do? What is the APR,and how does it fulfill the purpose of the Act?

Accepted Answer

Lenders are required to disclose a stand

Question 7

Automobile insurance rates are likely to differ for all of the following reasons except some cars

Accepted Answer

A)  are more popular than others. 
B)  cost more to repair after accidents. 
C)  are more common theft targets. 
D)  are higher priced. 
A)  are more popular than others. 
B)  cost more to repair after accidents. 
C)  are more common theft targets. 
D)  are higher priced.

Question 8

If you double the principal repayment called for on your car loan each month without doubling the interest payment,you will

Accepted Answer

A)  reduce the term of the loan by half. 
B)  reduce the amount of interest you pay by about 30%. 
C)  not have much effect since you are not also doubling the interest paid monthly. 
D)  Both A and B are correct. 
A)  reduce the term of the loan by half. 
B)  reduce the amount of interest you pay by about 30%. 
C)  not have much effect since you are not also doubling the interest paid monthly. 
D)  Both A and B are correct.

Question 9

The most common source of financing for a personal loan is from a financial institution.

Accepted Answer

A) True 
 B)False

Question 10

Financial institutions typically provide home equity loans up to ________ of the value of the equity in a home.

Accepted Answer

A)  98% 
B)  80% 
C)  70% 
D)  45% 
A)  98% 
B)  80% 
C)  70% 
D)  45%

Question 11

The ________ the maturity of a loan,the ________ the payments.

Accepted Answer

A)  longer; smaller 
B)  shorter; larger 
C)  shorter; smaller 
D)  Both A and B are correct 
A)  longer; smaller 
B)  shorter; larger 
C)  shorter; smaller 
D)  Both A and B are correct

Question 12

Which of the following items must you provide when applying for a loan in order to prove you have collateral to back your loan?

Accepted Answer

A)  Personal cash flow statement 
B)  Paycheck stub 
C)  Personal balance sheet 
D)  Credit card statements 
A)  Personal cash flow statement 
B)  Paycheck stub 
C)  Personal balance sheet 
D)  Credit card statements

Question 13

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 14

The APR measures the finance expenses (including interest and all other expenses)on a loan on a(n)

Accepted Answer

A)  quarterly basis. 
B)  annualized basis. 
C)  monthly basis. 
D)  daily basis. 
A)  quarterly basis. 
B)  annualized basis. 
C)  monthly basis. 
D)  daily basis.

Question 15

If you borrow an $8,000,6.75% home equity loan,what is your tax savings for one year assuming your marginal income tax rate is 15%?

Accepted Answer

A)  $540 
B)  $81 
C)  $270 
D)  $162 
A)  $540 
B)  $81 
C)  $270 
D)  $162

Question 16

Which of the following is a key benefit of leasing?

Accepted Answer

A)  You do not have to fill out a credit application. 
B)  You do not have to maintain the car since you do not own it. 
C)  You are able to drive a more expensive car for the same monthly payment versus buying. 
D)  A, B and C are all correct. 
A)  You do not have to fill out a credit application. 
B)  You do not have to maintain the car since you do not own it. 
C)  You are able to drive a more expensive car for the same monthly payment versus buying. 
D)  A, B and C are all correct.

Question 17

What is the total cost of leasing a vehicle for three years that requires a security deposit of $300 (would earn 3% interest in a money market account otherwise),has monthly lease payments of $385,and has a mileage restriction of 10,000 with excess mileage resulting in a 10 cents per mile charge.Assume that over the life of the lease you exceed this limitation by 8,000 miles.

Accepted Answer

A)  $14,160 
B)  $13,860 
C)  $14,687 
D)  $14,660 
A)  $14,160 
B)  $13,860 
C)  $14,687 
D)  $14,660

Question 18

Which of the following is not usually used as collateral for a loan?

Accepted Answer

A)  A boat 
B)  Clothing 
C)  A car 
D)  A house 
A)  A boat 
B)  Clothing 
C)  A car 
D)  A house

Question 19

What is the correct chronological order of the items listed below?

Accepted Answer

A)  Good credit history, loan contract, repayment schedule, loan application 
B)  Good credit history, loan application, loan contract, repayment schedule 
C)  Good credit history, repayment schedule, loan application, loan contract 
D)  Good credit history, repayment schedule, loan contract, loan application 
A)  Good credit history, loan contract, repayment schedule, loan application 
B)  Good credit history, loan application, loan contract, repayment schedule 
C)  Good credit history, repayment schedule, loan application, loan contract 
D)  Good credit history, repayment schedule, loan contract, loan application

Question 20

The loan contract identifies all of the following except

Accepted Answer

A)  loan officer. 
B)  maturity. 
C)  loan repayment schedule. 
D)  collateral. 
A)  loan officer. 
B)  maturity. 
C)  loan repayment schedule. 
D)  collateral.

Advantages of leasing a vehicle include all of the following except

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

There are limits on how much a student can borrow through federal student loans,so many students also have to obtain private loans from financial institutions.

One alternative to payday loans is to avoid borrowing until you have the funds to spend.

Which of the following is the most common source of financing for personal loans?

What does the Truth-in-Lending Act of 1969 require lenders to do? What is the APR,and how does it fulfill the purpose of the Act?

Automobile insurance rates are likely to differ for all of the following reasons except some cars

If you double the principal repayment called for on your car loan each month without doubling the interest payment,you will

The most common source of financing for a personal loan is from a financial institution.

Financial institutions typically provide home equity loans up to ________ of the value of the equity in a home.

The the maturity of a loan,the the payments.

Which of the following items must you provide when applying for a loan in order to prove you have collateral to back your loan?

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

The APR measures the finance expenses (including interest and all other expenses)on a loan on a(n)

If you borrow an $8,000,6.75% home equity loan,what is your tax savings for one year assuming your marginal income tax rate is 15%?

Which of the following is a key benefit of leasing?

Which of the following is not usually used as collateral for a loan?

What is the correct chronological order of the items listed below?

The loan contract identifies all of the following except

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

Advantages of leasing a vehicle include all of the following except

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

There are limits on how much a student can borrow through federal student loans,so many students also have to obtain private loans from financial institutions.

One alternative to payday loans is to avoid borrowing until you have the funds to spend.

Which of the following is the most common source of financing for personal loans?

What does the Truth-in-Lending Act of 1969 require lenders to do? What is the APR,and how does it fulfill the purpose of the Act?

Automobile insurance rates are likely to differ for all of the following reasons except some cars

If you double the principal repayment called for on your car loan each month without doubling the interest payment,you will

The most common source of financing for a personal loan is from a financial institution.

Financial institutions typically provide home equity loans up to ________ of the value of the equity in a home.

The ________ the maturity of a loan,the ________ the payments.

Which of the following items must you provide when applying for a loan in order to prove you have collateral to back your loan?

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

The APR measures the finance expenses (including interest and all other expenses)on a loan on a(n)

If you borrow an $8,000,6.75% home equity loan,what is your tax savings for one year assuming your marginal income tax rate is 15%?

Which of the following is a key benefit of leasing?

Which of the following is not usually used as collateral for a loan?

What is the correct chronological order of the items listed below?

The loan contract identifies all of the following except

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

The the maturity of a loan,the the payments.