Question 1

The two most common methods of calculating interest are compound and simple interest formulas.

Accepted Answer

A) True 
 B)False

Question 2

This morning,you received a phone call regarding a debt you allegedly owe.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) B) and E)
G) B) and D)

Question 3

Who financially supports the Consumer Credit Counseling Service?

Accepted Answer

A)  National Foundation for Consumer Credit
B)  Community-minded firms and individuals
C)  Federal Reserve Banks
D)  The Federal Home Loan Bank
E)  TaxpayersF) C) and D)
G) B) and C)

Question 4

In order for a student to apply for financial aid,a student must file an annual:

Accepted Answer

A)  credit report request.
B)  Free Application for Federal Student Aid.
C)  income tax return by April 15.
D)  police report.
E)  background check.F) All of the above
G) A) and B) B

Question 5

Sarah Parker's husband goes out with the 'boys' for a night on the town and gets home at 4 am waking everyone in the house.In response,Sarah goes out the next day and spends $500 in new clothes for herself putting it all on her credit card.Which one of the answers best explains Sarah'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) A) and E)
G) C) and D)

Question 6

With the add-on interest method,interest is calculated on the full amount of the original principal.

Accepted Answer

A) True 
 B)False

Question 7

The CCCS sometimes charges a fee if it:

Accepted Answer

A)  administers a debt repayment plan.
B)  helps families manage their debts better.
C)  sets up a realistic budget for them.
D)  provides education to needy families.
E)  contacts creditors.F) None of the above
G) B) and E) A

Question 8

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) B) and C)
G) D) and E)

Question 9

You can often obtain medium-priced loans from:

Accepted Answer

A)  parents or family members.
B)  American Express.
C)  Diners Club.
D)  finance companies.
E)  commercial banks and credit unions.F) B) and C)
G) B) and E)

Question 10

In open-end credit,what are the various systems creditors use to calculate the balance on which they assess finance charges?

Accepted Answer

The answer of In open-end credit,what are the various systems...

Question 11

The total dollar amount you pay to use credit is called the:

Accepted Answer

A)  finance charge.
B)  annual percentage rate.
C)  price of the good/service purchased.
D)  amortized rebate.
E)  interest ratE.F) A) and B)
G) B) and C)

Question 12

Jerrod Dean 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 adjusted balance method.What would Jerrod's finance charges be for the month?

Accepted Answer

A)  $7.50
B)  $13.25
C)  $11.25
D)  $15.00
E)  $18.00F) A) and B)
G) A) and C)

Question 13

If you borrow $100 at 10 percent simple annual interest and repay it in one lump-sum at the end of one year,you will repay:

Accepted Answer

A)  $100.
B)  $105.
C)  $110.
D)  $115.
E)  $120.F) A) and B)
G) A) and E)

Question 14

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 15

In addition to the Consumer Credit Counseling Service,universities,credit unions,military bases,and state and federal housing authorities sometimes provide credit counseling services.

Accepted Answer

A) True 
 B)False

Question 16

Which one of these methods is the fairest of calculating interest?

Accepted Answer

A)  declining balance
B)  adjusted balance
C)  average daily balance excluding purchases
D)  average daily including purchases method
E)  previous balance methodF) A) and E)
G) None of the above

Question 17

Inflation increases the purchasing power of money.

Accepted Answer

A) True 
 B)False

Question 18

One of the drawbacks of borrowing from parents or family members is that such loans:

Accepted Answer

A)  tend to be more expensive than other types of loans.
B)  must be interest-free.
C)  may create tension within the family.
D)  are limited to oral agreements.
E)  are legally prohibited from establishing repayment dates and terms.F) B) and D)
G) None of the above C

Question 19

The Consumer Credit Counseling Service counseling is usually free.

Accepted Answer

A) True 
 B)False

Question 20

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) B) and C)
G) None of the above

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

The two most common methods of calculating interest are compound and simple interest formulas.

Correct Answer
verified

This morning,you received a phone call regarding a debt you allegedly owe.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 Answer
verified

Who financially supports the Consumer Credit Counseling Service?

Correct Answer
verified

In order for a student to apply for financial aid,a student must file an annual:

Correct Answer
verified
B

Sarah Parker's husband goes out with the 'boys' for a night on the town and gets home at 4 am waking everyone in the house.In response,Sarah goes out the next day and spends $500 in new clothes for herself putting it all on her credit card.Which one of the answers best explains Sarah's spending?

Correct Answer
verified

With the add-on interest method,interest is calculated on the full amount of the original principal.

Correct Answer
verified

The CCCS sometimes charges a fee if it:

Correct Answer
verified
A

The most commonly purchased type of credit insurance is:

Correct Answer
verified

You can often obtain medium-priced loans from:

Correct Answer
verified

In open-end credit,what are the various systems creditors use to calculate the balance on which they assess finance charges?

Correct Answer
verified

The total dollar amount you pay to use credit is called the:

Correct Answer
verified

Correct Answer
verified

If you borrow $100 at 10 percent simple annual interest and repay it in one lump-sum at the end of one year,you will repay:

Correct Answer
verified

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

Correct Answer
verified

In addition to the Consumer Credit Counseling Service,universities,credit unions,military bases,and state and federal housing authorities sometimes provide credit counseling services.

Correct Answer
verified

Which one of these methods is the fairest of calculating interest?

Correct Answer
verified

Inflation increases the purchasing power of money.

Correct Answer
verified

One of the drawbacks of borrowing from parents or family members is that such loans:

Correct Answer
verified
C

The Consumer Credit Counseling Service counseling is usually free.

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

The two most common methods of calculating interest are compound and simple interest formulas.

Correct AnswerverifiedShow Answer

This morning,you received a phone call regarding a debt you allegedly owe.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

Who financially supports the Consumer Credit Counseling Service?

Correct AnswerverifiedShow Answer

In order for a student to apply for financial aid,a student must file an annual:

Correct AnswerverifiedB

Sarah Parker's husband goes out with the 'boys' for a night on the town and gets home at 4 am waking everyone in the house.In response,Sarah goes out the next day and spends $500 in new clothes for herself putting it all on her credit card.Which one of the answers best explains Sarah's spending?

Correct AnswerverifiedShow Answer

With the add-on interest method,interest is calculated on the full amount of the original principal.

Correct AnswerverifiedShow Answer

The CCCS sometimes charges a fee if it:

Correct AnswerverifiedA

The most commonly purchased type of credit insurance is:

Correct AnswerverifiedShow Answer

You can often obtain medium-priced loans from:

Correct AnswerverifiedShow Answer

In open-end credit,what are the various systems creditors use to calculate the balance on which they assess finance charges?

Correct AnswerverifiedShow Answer

The total dollar amount you pay to use credit is called the:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

If you borrow $100 at 10 percent simple annual interest and repay it in one lump-sum at the end of one year,you will repay:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

In addition to the Consumer Credit Counseling Service,universities,credit unions,military bases,and state and federal housing authorities sometimes provide credit counseling services.

Correct AnswerverifiedShow Answer

Which one of these methods is the fairest of calculating interest?

Correct AnswerverifiedShow Answer

Inflation increases the purchasing power of money.

Correct AnswerverifiedShow Answer

One of the drawbacks of borrowing from parents or family members is that such loans:

Correct AnswerverifiedC

The Consumer Credit Counseling Service counseling is usually free.

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
verified

Correct Answer
verified

Correct Answer
verified
B

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
A

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
C

Correct Answer
verified

Correct Answer
verified