Question 1

Which of the following is not true about the Credit CARD Act of 2009?

Accepted Answer

A)   States that teaser rates must be in effect for at least 6 months
B)   Makes new disclosure statements clear and more timely
C)   Requires card issuers to post their standard card agreements on the Internet
D)   Allows card issuers to apply new (higher)  interest rates to the existing card balances
E)   Requires issuers to mail monthly statements at least 21 days before payment is dueF) A) and B)
G) A) and C)

Question 2

Steve Black has two children. He is buying each of them their own TV to put in their rooms so they do not have to join the rest of the family and watch TV together. Which one of the answers best explains Gary's spending?

Accepted Answer

A)   Misunderstanding or lack of communication
B)   The use of money to punish
C)   The expectation of instant comfort
D)   Keeping up with the Joneses
E)   Overindulgence of childrenF) C) and E)
G) A) and D)

Question 3

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) B) and C)
G) A) and B)

Question 4

Jerry Allison starts the month with a balance on his credit card of $1,000. On the 10th day of the month, he purchases $200 in clothes with his credit card. On the 15th day of the month he makes a payment on his credit card of $500. The bank charges 1.5 percent interest per month using the previous balance method. What would Jerry's finance charges be for the month?

Accepted Answer

A)   $7.50
B)   $13.25
C)   $11.25
D)   $15.00
E)   $18.00F) C) and E)
G) All of the above

Question 5

What are two key concepts to keep in mind as you shop for credit?

Accepted Answer

When shopping for credit, whether it's a...

Question 6

The fairest method of calculating interest is the adjusted balance method.

Accepted Answer

A) True 
 B)False

Question 7

An increasing number of personal bankruptcy filers are baby boomers, who now account for what percent of bankruptcies?

Accepted Answer

A)   10
B)   20
C)   35
D)   50
E)   60F) A) and E)
G) A) and D)

Question 8

If you want to take advantage of the interest-free period on your credit card, you must pay your bill in full every month.

Accepted Answer

A) True 
 B)False

Question 9

Anthony Newton wants to buy a new sail boat. He makes a down payment of $10,000 which represents 20% of the value of the sail boat he is purchasing. In which way is Anthony reducing his lender's risk?

Accepted Answer

A)   He is sharing the interest rate risk with his lender.
B)   He is pledging valuable assets that can be seized if the loan is not repaid.
C)   He is taking a larger stake in the asset he is purchasing.
D)   He is repaying the loan over a faster period of time.
E)   None of these.F) D) and E)
G) B) and E)

Question 10

The CCCS aids families by:

Accepted Answer

A)   setting up a budget for them.
B)   paying off their loans.
C)   providing free basic necessities.
D)   providing one month free shelter.
E)   relocating them in less expensive areas.F) A) and B)
G) B) and D)

Question 11

Buying on credit is almost always cheaper than paying cash.

Accepted Answer

A) True 
 B)False

Question 12

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 13

After you have selected a product, you should buy it immediately before the store runs out of it.

Accepted Answer

A) True 
 B)False

Question 14

When more than one payment is made on a simple interest loan, the method of computing interest is known as the declining balance method.

Accepted Answer

A) True 
 B)False

Question 15

In a straight bankruptcy, many, but not all, debts are forgiven.

Accepted Answer

A) True 
 B)False

Question 16

If creditors give you no credit for payments made during the billing period, it is called the adjusted balance method.

Accepted Answer

A) True 
 B)False

Question 17

Excessive indebtedness can result in:

Accepted Answer

A)   heavy drinking.
B)   a neglect of children.
C)   marital problems.
D)   drug abuse.
E)   Almost any bad stress-induced behavior could be a result of excessive indebtedness, including all of these behaviors.F) C) and D)
G) A) and B)

Question 18

Two key concepts that you should keep in mind when borrowing are the finance charge and the annual percentage rate.

Accepted Answer

A) True 
 B)False

Question 19

In what ways can you lower the risk to your lender in order to reduce your borrowing costs?

Accepted Answer

The answer of In what ways can you lower the...

Question 20

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

Accepted Answer

A) True 
 B)False

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

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

Correct Answer
verified

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

Correct Answer
verified

An increasing number of personal bankruptcy filers are baby boomers, who now account for what percent of bankruptcies?

Correct Answer
verified

The CCCS aids families by:

Correct Answer
verified

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

Correct Answer
verified

The fairest method of calculating interest is the adjusted balance method.

Correct Answer
verified

Which of the following is not true about the Credit CARD Act of 2009?

Correct Answer
verified

What are two key concepts to keep in mind as you shop for credit?

Correct Answer
Answered by ExamLex AI
When shopping for credit, whether it's a...
View Answer

Excessive indebtedness can result in:

Correct Answer
verified

If you want to take advantage of the interest-free period on your credit card, you must pay your bill in full every month.

Correct Answer
verified

Buying on credit is almost always cheaper than paying cash.

Correct Answer
verified

When more than one payment is made on a simple interest loan, the method of computing interest is known as the declining balance method.

Correct Answer
verified

Anthony Newton wants to buy a new sail boat. He makes a down payment of $10,000 which represents 20% of the value of the sail boat he is purchasing. In which way is Anthony reducing his lender's risk?

Correct Answer
verified

In a straight bankruptcy, many, but not all, debts are forgiven.

Correct Answer
verified

If creditors give you no credit for payments made during the billing period, it is called the adjusted balance method.

Correct Answer
verified

In what ways can you lower the risk to your lender in order to reduce your borrowing costs?

Correct Answer
verified

Two key concepts that you should keep in mind when borrowing are the finance charge and the annual percentage rate.

Correct Answer
verified

Correct Answer
verified

After you have selected a product, you should buy it immediately before the store runs out of it.

Correct Answer
verified

Steve Black has two children. He is buying each of them their own TV to put in their rooms so they do not have to join the rest of the family and watch TV together. Which one of the answers best explains Gary's spending?

Correct Answer
verified

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

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

An increasing number of personal bankruptcy filers are baby boomers, who now account for what percent of bankruptcies?

Correct AnswerverifiedShow Answer

The CCCS aids families by:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The fairest method of calculating interest is the adjusted balance method.

Correct AnswerverifiedShow Answer

Which of the following is not true about the Credit CARD Act of 2009?

Correct AnswerverifiedShow Answer

What are two key concepts to keep in mind as you shop for credit?

Correct AnswerAnswered by ExamLex AIWhen shopping for credit, whether it's a...View AnswerShow Answer

Excessive indebtedness can result in:

Correct AnswerverifiedShow Answer

If you want to take advantage of the interest-free period on your credit card, you must pay your bill in full every month.

Correct AnswerverifiedShow Answer

Buying on credit is almost always cheaper than paying cash.

Correct AnswerverifiedShow Answer

When more than one payment is made on a simple interest loan, the method of computing interest is known as the declining balance method.

Correct AnswerverifiedShow Answer

Anthony Newton wants to buy a new sail boat. He makes a down payment of $10,000 which represents 20% of the value of the sail boat he is purchasing. In which way is Anthony reducing his lender's risk?

Correct AnswerverifiedShow Answer

In a straight bankruptcy, many, but not all, debts are forgiven.

Correct AnswerverifiedShow Answer

If creditors give you no credit for payments made during the billing period, it is called the adjusted balance method.

Correct AnswerverifiedShow Answer

In what ways can you lower the risk to your lender in order to reduce your borrowing costs?

Correct AnswerverifiedShow Answer

Two key concepts that you should keep in mind when borrowing are the finance charge and the annual percentage rate.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

After you have selected a product, you should buy it immediately before the store runs out of it.

Correct AnswerverifiedShow Answer

Steve Black has two children. He is buying each of them their own TV to put in their rooms so they do not have to join the rest of the family and watch TV together. Which one of the answers best explains Gary's spending?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
Answered by ExamLex AI
When shopping for credit, whether it's a...
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
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Correct Answer
verified

Correct Answer
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