Question 1

The best way to pay off credit is to follow the minimum payment amount stated on your bill.

Accepted Answer

A) True 
 B)False

Question 2

By evaluating your credit options, you can

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

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

In regards bankruptcy and insolvency, briefly define a consumer proposal. Who is eligible for this type of insolvency protection application?

Accepted Answer

A consumer proposal is a maximum five-ye...

Question 5

If you default on your automobile loan,

Accepted Answer

A)   an advance notice to you is required before your car is repossessed.
B)   no advance notice is required before repossession.
C)   the federal consumer credit laws give you protection.
D)   you don't have to pay the full balance due on the loan.
E)   the creditor pays the towing and storage costs.F) A) and C)
G) A) and D)

Question 6

Which of the following are signs of debt problems?

Accepted Answer

A)   continually go over your spending limit
B)   use credit cards as a necessity rather than as a convenience
C)   always borrowing money to make it from one payday to the next
D)   you pay only interest or service charges monthly and do not reduce your total debt
E)   all these statements are signs of debt problems.F) A) and C)
G) B) and E)

Question 7

Credit card co-branding has become popular with banks and industries.

Accepted Answer

A) True 
 B)False

Question 8

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 9

Most borrowers should buy credit life insurance.

Accepted Answer

A) True 
 B)False

Question 10

Creditors use the same system to calculate the balance on which they assess finance charges.

Accepted Answer

A) True 
 B)False

Question 11

Anyone overburdened by credit obligations can phone, write, or visit a credit counsellor.

Accepted Answer

A) True 
 B)False

Question 12

Consolidation loans

Accepted Answer

A)   have the advantage of a single interest rate on the full amount of your selected debts
B)   usually have shorter terms than your initial debts
C)   usually have lower interest rates because you are considered to be a lower risk for the lender
D)   are best used for low or no interest debts
E)   usually pay less overall when you extend the term of paymentF) D) and E)
G) B) and E)

Question 13

By evaluating your credit options, you can reduce your finance charges.

Accepted Answer

A) True 
 B)False

Question 14

Governmental non-profit counseling services are usually free or at low cost.

Accepted Answer

A) True 
 B)False

Question 15

If creditors add finance charges after subtracting payments made during the billing period, this is called the previous balance method.

Accepted Answer

A) True 
 B)False

Question 16

Obtaining credit may be easier for people who file a consumer proposal rather than a bankruptcy.

Accepted Answer

A) True 
 B)False

Question 17

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 18

The consumer proposal is a maximum five-year plan for paying creditors all or apportion of the total debt owed.

Accepted Answer

A) True 
 B)False

Question 19

The disadvantage of using an interest only line of credit is the considerably longer time it takes to repay the loan in comparison to a traditional consumer installment loan.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following tend to be expensive loans?

Accepted Answer

A)   retailers
B)   banks
C)   credit unions
D)   family members
E)   trust companiesF) B) and C)
G) A) and D)

Exam 6: Choosing a Source Credit: the Costs of Credit Alternatives

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Obtaining credit may be easier for people who file a consumer proposal rather than a bankruptcy.

Correct AnswerverifiedShow Answer

The disadvantage of using an interest only line of credit is the considerably longer time it takes to repay the loan in comparison to a traditional consumer installment loan.

Correct AnswerverifiedShow Answer

Consolidation loans

Correct AnswerverifiedShow Answer

By evaluating your credit options, you can

Correct AnswerverifiedShow Answer

Most borrowers should buy credit life insurance.

Correct AnswerverifiedShow Answer

The best way to pay off credit is to follow the minimum payment amount stated on your bill.

Correct AnswerverifiedShow Answer

If creditors add finance charges after subtracting payments made during the billing period, this is called the previous balance method.

Correct AnswerverifiedShow Answer

If you default on your automobile loan,

Correct AnswerverifiedShow Answer

In regards bankruptcy and insolvency, briefly define a consumer proposal. Who is eligible for this type of insolvency protection application?

Correct AnswerverifiedA consumer proposal is a maximum five-ye...View AnswerShow Answer

Credit card co-branding has become popular with banks and industries.

Correct AnswerverifiedShow Answer

By evaluating your credit options, you can reduce your finance charges.

Correct AnswerverifiedShow Answer

Which of the following tend to be expensive loans?

Correct AnswerverifiedShow Answer

Anyone overburdened by credit obligations can phone, write, or visit a credit counsellor.

Correct AnswerverifiedShow Answer

Which of the following are signs of debt problems?

Correct AnswerverifiedShow Answer

Governmental non-profit counseling services are usually free or at low cost.

Correct AnswerverifiedShow Answer

The consumer proposal is a maximum five-year plan for paying creditors all or apportion of the total debt owed.

Correct AnswerverifiedShow Answer

Creditors use the same system to calculate the balance on which they assess finance charges.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow 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
verified
A consumer proposal is a maximum five-ye...
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