Exam 2: Managing Your Financial Resources - Assessing,Managing and Securing Your Credit

Tom needs a car to commute to work and has found a suitable Honda Civic from a dealer for $8000.He has $3000 saved for it and can afford a monthly payment up to $250.Which of the following is the best (lowest total cost)financing option for him?

For the best customers,a bank will lend money at

Which of the following is most accurate about interest rates in Canada?

Low credit scores may result in

A large number of recent credit inquiries suggests

A poor credit history will appear on your credit report for

If you declare bankruptcy within seven years of ceasing to be a student,you may have your student loans forgiven.

Even though you may have a very high credit score,the loan approval

Someone with a credit score of 800 will pay a higher interest rate than someone with a score of 820.

A BEACON score of 820 indicates a person has a high likelihood of paying back debt as expected.

The item that receives the most weight in the BEACON credit scoring system is

What would be the total cost of leasing a vehicle for four years that requires a security deposit of $1000 (which would be withdrawn from your portfolio,which earns nine percent per year),has monthly lease payments of $500,and has a kilometer restriction of $20000 with excess kilometers resulting in a charge of 10 cents per kilometer? (Assume that,over the life of the lease,you exceed the kilometer limit by 8000.)

One of the greatest benefits of leasing a car is that you do not have the hassles of ownership.

If you apply for a payday loan of $1000 from a financial institution for 10 days,you pay back $1150.What is the cost of financing this payday loan?

The loan contract identifies all but which of the following?

Posing as an employee of a brokerage firm to obtain information to allegedly update your account information is an example of

Fred has a credit card which uses the average daily balance method,has a 30-day billing period,a 21-day grace period and charges 21 percent annual interest calculated (but not compounded)daily.His average daily balance for the billing period was $7900,and he could not pay it off until received his pay cheque eight days after the statement due date.How much interest does he owe?

In considering the true cost of a personal loan,if you used collateral to reduce the interest charge,then the appraisal fee charged to evaluate the assets should not be considered Chapter of the cost of borrowing.

From a borrower's perspective,all else the same,a longer-term loan

Using the previous balance method,if you paid your credit card off five days late and your balance was $5000,with interest 20% calculated daily,you would owe $15.16 in interest.