Question 1

If you are having problems paying your bills and need help,what are several options available to you?

Accepted Answer

If you cannot meet your credit obligatio...

Question 2

Inflation increases the purchasing power of money.

Accepted Answer

A) True 
 B)False

Question 3

This morning,you received a phone call alleging you owe a debt.If you dispute this debt,you must write to the debt collector and request verification of the obligation.How many days do you have to send this letter?

Accepted Answer

A)  5
B)  10
C)  15
D)  20
E)  30F) A) and C)
G) A) and B)

Question 4

Which of the following is true of the minimum monthly payment on a credit card?

Accepted Answer

A)  It is the largest amount you can pay and still be a cardholder in good standing.
B)  It is not required to be listed as a warning on your monthly credit card statement.
C)  It refers to the maximum payment amount due from a cardholder.
D)  It is a financial trap.
E)  It refers to the total amount that a cardholder owes.F) B) and C)
G) C) and E)

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

Under the rule of 78s,loans for a year or less usually do not allow for a finance charge rebate.

Accepted Answer

A) True 
 B)False

Question 7

Which form of bankruptcy allows a debtor with a regular income to extinguish his or her debts from future earnings or other property over a period of time?

Accepted Answer

A)  Chapter 7
B)  Chapter 11
C)  Chapter 13
D)  Chapter 15
E)  Chapter 17F) A) and B)
G) C) and E)

Question 8

Which federal law,passed in 1969,requires creditors to state the cost of borrowing as a dollar amount?

Accepted Answer

A)  Fair Credit Reporting Act
B)  Fair Credit Billing Act
C)  Equal Credit Opportunity Act
D)  Fair Debt Collection Practices Act
E)  Truth in Lending LawF) A) and B)
G) B) and D)

Question 9

In filing a petition for a Chapter 7 bankruptcy,a debtor must provide the following:

Accepted Answer

A)  A list of creditors and the amount and nature of their claims.
B)  The source,amount,and frequency of the creditor's income.
C)  A list of all the creditor's property.
D)  A detailed list of the creditor's monthly expenses.
E)  A list of the creditor's personal references.F) C) and E)
G) C) and D)

Question 10

The most commonly purchased type of credit insurance is:

Accepted Answer

A)  credit life insurance.
B)  credit accident insurance.
C)  credit health insurance.
D)  credit property insurance.
E)  credit disability insurance.F) A) and D)
G) A) and E)

Question 11

Which payday loan lender is likely to ask you to write a check for $115 before granting you a $100 loan?

Accepted Answer

A)  Credit union
B)  Finance company
C)  Federal savings bank
D)  Department store
E)  Commercial bankF) D) and E)
G) A) and E)

Question 12

Chapter 7 bankruptcy is also known as a straight bankruptcy.

Accepted Answer

A) True 
 B)False

Question 13

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 interest rate.
E)  All of theseF) A) and B)
G) None of the above

Question 14

Excessive indebtedness can result in:

Accepted Answer

A)  heavy drinking.
B)  neglect of children.
C)  marital difficulties.
D)  drug abuse.
E)  All of theseF) B) and E)
G) A) and D)

Question 15

In addition to the Consumer Credit Counseling Service (CCCS) ,the following entities also provide counseling services:

Accepted Answer

A)  Universities
B)  Credit unions
C)  Military bases
D)  State and federal housing authorities
E)  All of theseF) A) and B)
G) A) and E)

Question 16

If your credit company invites you to skip a monthly payment without a penalty,they are doing you a favor.

Accepted Answer

A) True 
 B)False

Question 17

There are no costs involved in filing for a bankruptcy.

Accepted Answer

A) True 
 B)False

Question 18

There is never a charge for a debt repayment plan administered by a Consumer Credit Counseling Service (CCCS)office.

Accepted Answer

A) True 
 B)False

Question 19

The most commonly purchased type of credit insurance is credit life insurance.

Accepted Answer

A) True 
 B)False

Question 20

If creditors add finance charges after subtracting payments made during the billing period,then this is called the:

Accepted Answer

A)  APR method.
B)  discount method.
C)  previous balance method.
D)  adjusted balance method.
E)  average daily balance method.F) B) and E)
G) C) and D)

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

The most commonly purchased type of credit insurance is:

Correct AnswerverifiedShow Answer

There are no costs involved in filing for a bankruptcy.

Correct AnswerverifiedShow Answer

Which of the following is true of the minimum monthly payment on a credit card?

Correct AnswerverifiedShow Answer

Which payday loan lender is likely to ask you to write a check for $115 before granting you a $100 loan?

Correct AnswerverifiedShow Answer

This morning,you received a phone call alleging you owe a debt.If you dispute this debt,you must write to the debt collector and request verification of the obligation.How many days do you have to send this letter?

Correct AnswerverifiedShow Answer

Under the rule of 78s,loans for a year or less usually do not allow for a finance charge rebate.

Correct AnswerverifiedShow Answer

The most commonly purchased type of credit insurance is credit life insurance.

Correct AnswerverifiedShow Answer

By evaluating your credit options,you may:

Correct AnswerverifiedShow Answer

Excessive indebtedness can result in:

Correct AnswerverifiedShow Answer

Which form of bankruptcy allows a debtor with a regular income to extinguish his or her debts from future earnings or other property over a period of time?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

There is never a charge for a debt repayment plan administered by a Consumer Credit Counseling Service (CCCS)office.

Correct AnswerverifiedShow Answer

Inflation increases the purchasing power of money.

Correct AnswerverifiedShow Answer

If your credit company invites you to skip a monthly payment without a penalty,they are doing you a favor.

Correct AnswerverifiedShow Answer

If creditors add finance charges after subtracting payments made during the billing period,then this is called the:

Correct AnswerverifiedShow Answer

Which federal law,passed in 1969,requires creditors to state the cost of borrowing as a dollar amount?

Correct AnswerverifiedShow Answer

If you are having problems paying your bills and need help,what are several options available to you?

Correct AnswerverifiedIf you cannot meet your credit obligatio...View AnswerShow Answer

Chapter 7 bankruptcy is also known as a straight bankruptcy.

Correct AnswerverifiedShow Answer

In addition to the Consumer Credit Counseling Service (CCCS) ,the following entities also provide counseling services:

Correct AnswerverifiedShow Answer

In filing a petition for a Chapter 7 bankruptcy,a debtor must provide the following:

Correct AnswerverifiedShow Answer

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If you cannot meet your credit obligatio...
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