Question 1

You may be able to borrow at a lower interest rate if you accept a shorter-term loan.

Accepted Answer

A) True 
 B)False

Question 2

The finance charge is the total dollar amount you pay to use credit.

Accepted Answer

A) True 
 B)False

Question 3

According to consumer affairs experts,the nation's number one family financial problem is:

Accepted Answer

A)  poor money management.
B)  over-indebtedness.
C)  medical costs.
D)  insurance costs.
E)  unemployment.F) C) and D)
G) B) and E)

Question 4

Payday,cash advance,check advance,and post- dated checks are _________ loans.

Accepted Answer

A)  inexpensive
B)  medium-priced
C)  expensive
D)  low APR
E)  variable APRF) A) and C)
G) B) and D)

Question 5

By evaluating your credit options,you may:

Accepted Answer

A)  reduce your finance charges.
B)  reconsider your decision to borrow money.
C)  discover a less expensive type of loan.
D)  find a lender that charges a lower rate.
E)  All of the other answers.F) D) and E)
G) C) and E)

Question 6

Which of the following lenders is most likely to be sympathetic about legitimate payment problems?

Accepted Answer

A)  credit union
B)  payday advance company
C)  finance company
D)  department store
E)  commercial bankF) None of the above
G) D) and E)

Question 7

The Consumer Credit Counseling Service (CCCS) is affiliated with the:

Accepted Answer

A)  National Foundation for Consumer Credit.
B)  Federal Trade Commission.
C)  Better Business Bureau.
D)  U.S.Consumer Protection Agency.
E)  Federal Reserve Banks.F) A) and E)
G) A) and D)

Question 8

Your bankcard has an APR of 18% and there is a 2% fee for cash advances.The bank starts charging interest on cash advances immediately.You get a cash advance of $600 on the first day of the month.You get your credit card bill at the end of the month.What is the total finance charge you will pay on this cash advance for the month? Assume each month has 30 days

Accepted Answer

A)  $12.
B)  $9.
C)  $21.
D)  $0.
E)  $2.F) B) and C)
G) A) and E)

Question 9

Explain choices available in declaring bankruptcy.

Accepted Answer

When declaring bankruptcy, individuals h...

Question 10

In a Chapter 13 bankruptcy,the debtor normally keeps all or most of his or her property.

Accepted Answer

A) True 
 B)False

Question 11

If you want to reduce your borrowing costs,you may need to accept conditions that lower the risk for your lender.

Accepted Answer

A) True 
 B)False

Question 12

What are the major sources of consumer credit?

Accepted Answer

The answer of What are the major sources of consumer...

Question 13

The annual percentage rate is the percentage cost of credit on a yearly basis.

Accepted Answer

A) True 
 B)False

Question 14

The CCCS is basically concerned with:

Accepted Answer

A)  lending money to destitute people.
B)  giving debtors food and shelter.
C)  helping destitute debtors to relocate into less expensive areas.
D)  preventing and solving the problems related to credit overextension.
E)  paying off mortgage loans.F) A) and D)
G) B) and D)

Question 15

An increasing number of bankruptcy filers are well-educated,middle-class baby boomers.

Accepted Answer

A) True 
 B)False

Question 16

If you declare a Chapter 7 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 interest?

Accepted Answer

The answer of What are the various methods used to...

Question 18

The Truth in Lending law does not set the interest rates or tell the creditor how to make interest calculations.

Accepted Answer

A) True 
 B)False

Question 19

The consumer credit laws require that an advance notice be given before repossessing a car.

Accepted Answer

A) True 
 B)False

Question 20

You have two choices in declaring personal bankruptcy: Chapter 7 and Chapter 13 bankruptcy.

Accepted Answer

A) True 
 B)False

Exam 7: Choosing a Source of Credit: The Costs of Credit Alternatives

In a Chapter 13 bankruptcy,the debtor normally keeps all or most of his or her property.

Correct Answer
verified

Explain choices available in declaring bankruptcy.

Correct Answer
Answered by ExamLex AI
When declaring bankruptcy, individuals h...
View Answer

What are the various methods used to calculate interest?

Correct Answer
verified

If you want to reduce your borrowing costs,you may need to accept conditions that lower the risk for your lender.

Correct Answer
verified

The annual percentage rate is the percentage cost of credit on a yearly basis.

Correct Answer
verified

If you declare a Chapter 7 bankruptcy,you do not have to pay alimony,child support,or educational loans.

Correct Answer
verified

The consumer credit laws require that an advance notice be given before repossessing a car.

Correct Answer
verified

You may be able to borrow at a lower interest rate if you accept a shorter-term loan.

Correct Answer
verified

Correct Answer
verified

Which of the following lenders is most likely to be sympathetic about legitimate payment problems?

Correct Answer
verified

The finance charge is the total dollar amount you pay to use credit.

Correct Answer
verified

Payday,cash advance,check advance,and post- dated checks are _________ loans.

Correct Answer
verified

The Truth in Lending law does not set the interest rates or tell the creditor how to make interest calculations.

Correct Answer
verified

The Consumer Credit Counseling Service (CCCS) is affiliated with the:

Correct Answer
verified

You have two choices in declaring personal bankruptcy: Chapter 7 and Chapter 13 bankruptcy.

Correct Answer
verified

By evaluating your credit options,you may:

Correct Answer
verified

What are the major sources of consumer credit?

Correct Answer
verified

The CCCS is basically concerned with:

Correct Answer
verified

According to consumer affairs experts,the nation's number one family financial problem is:

Correct Answer
verified

An increasing number of bankruptcy filers are well-educated,middle-class baby boomers.

Correct Answer
verified

Exam 7: Choosing a Source of Credit: The Costs of Credit Alternatives

In a Chapter 13 bankruptcy,the debtor normally keeps all or most of his or her property.

Correct AnswerverifiedShow Answer

Explain choices available in declaring bankruptcy.

Correct AnswerAnswered by ExamLex AIWhen declaring bankruptcy, individuals h...View AnswerShow Answer

What are the various methods used to calculate interest?

Correct AnswerverifiedShow Answer

If you want to reduce your borrowing costs,you may need to accept conditions that lower the risk for your lender.

Correct AnswerverifiedShow Answer

The annual percentage rate is the percentage cost of credit on a yearly basis.

Correct AnswerverifiedShow Answer

If you declare a Chapter 7 bankruptcy,you do not have to pay alimony,child support,or educational loans.

Correct AnswerverifiedShow Answer

The consumer credit laws require that an advance notice be given before repossessing a car.

Correct AnswerverifiedShow Answer

You may be able to borrow at a lower interest rate if you accept a shorter-term loan.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following lenders is most likely to be sympathetic about legitimate payment problems?

Correct AnswerverifiedShow Answer

The finance charge is the total dollar amount you pay to use credit.

Correct AnswerverifiedShow Answer

Payday,cash advance,check advance,and post- dated checks are _________ loans.

Correct AnswerverifiedShow Answer

The Truth in Lending law does not set the interest rates or tell the creditor how to make interest calculations.

Correct AnswerverifiedShow Answer

The Consumer Credit Counseling Service (CCCS) is affiliated with the:

Correct AnswerverifiedShow Answer

You have two choices in declaring personal bankruptcy: Chapter 7 and Chapter 13 bankruptcy.

Correct AnswerverifiedShow Answer

By evaluating your credit options,you may:

Correct AnswerverifiedShow Answer

What are the major sources of consumer credit?

Correct AnswerverifiedShow Answer

The CCCS is basically concerned with:

Correct AnswerverifiedShow Answer

According to consumer affairs experts,the nation's number one family financial problem is:

Correct AnswerverifiedShow Answer

An increasing number of bankruptcy filers are well-educated,middle-class baby boomers.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
Answered by ExamLex AI
When declaring bankruptcy, individuals h...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
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