Question 1

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 D)
G) A) and B)

Question 2

Collection agencies are allowed to:

Accepted Answer

A)   contact you at your place of employment.
B)   contact you as early as 8 am.
C)   say that you will be arrested if you don't pay the debt.
D)   harass you.
E)   threaten harm to you or your family.F) A) and E)
G) All of the above

Question 3

Which formula dictates that you pay more interest at the beginning of the loan and pay less and less interest as the debt is reduced?

Accepted Answer

A)   Adjusted balance method
B)   Previous balance method
C)   The rule of 78s
D)   Average daily balance
E)   Accelerated balanceF) C) and E)
G) C) and D)

Question 4

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 B)
G) A) and D)

Question 5

Which one of the following is often the source of the least expensive loan?

Accepted Answer

A)   Parents or family members
B)   Banks
C)   Savings and loan associations
D)   Finance companies
E)   Loan sharksF) A) and C)
G) C) and D)

Question 6

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 7

Explain choices available in declaring bankruptcy.

Accepted Answer

When declaring bankruptcy, individuals h...

Question 8

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

Question 9

What are the major sources of consumer credit?

Accepted Answer

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

Question 10

Which one of the following financing methods provides a float period?

Accepted Answer

A)   Installment loan
B)   Credit card
C)   Lump-sum loan
D)   Home equity line of credit
E)   Auto loanF) All of the above
G) A) and B)

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

Anyone overburdened by credit obligations can phone, write, or visit a Consumer Credit Counseling Service office.

Accepted Answer

A) True 
 B)False

Question 13

Which federal law, passed in 1969, requires creditors to state the cost of borrowing in common language?

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 ActF) C) and D)
G) A) and C)

Question 14

Chapter 7 bankruptcy is also known as straight bankruptcy.

Accepted Answer

A) True 
 B)False

Question 15

The CCCS is primarily 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) C) and D)
G) B) and C)

Question 16

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

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

Which one of the following financing methods provides a float period?

Correct Answer
verified

The CCCS is primarily concerned with:

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

Which federal law, passed in 1969, requires creditors to state the cost of borrowing in common language?

Correct Answer
verified

Which formula dictates that you pay more interest at the beginning of the loan and pay less and less interest as the debt is reduced?

Correct Answer
verified

Anyone overburdened by credit obligations can phone, write, or visit a Consumer Credit Counseling Service office.

Correct Answer
verified

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

Correct Answer
verified

Explain choices available in declaring bankruptcy.

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

Collection agencies are allowed to:

Correct Answer
verified

Which one of the following is often the source of the least expensive loan?

Correct Answer
verified

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

Chapter 7 bankruptcy is also known as straight bankruptcy.

Correct Answer
verified

What are the major sources of consumer credit?

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

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

Correct Answer
verified

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

Which one of the following financing methods provides a float period?

Correct AnswerverifiedShow Answer

The CCCS is primarily concerned with:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which federal law, passed in 1969, requires creditors to state the cost of borrowing in common language?

Correct AnswerverifiedShow Answer

Which formula dictates that you pay more interest at the beginning of the loan and pay less and less interest as the debt is reduced?

Correct AnswerverifiedShow Answer

Anyone overburdened by credit obligations can phone, write, or visit a Consumer Credit Counseling Service office.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Explain choices available in declaring bankruptcy.

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

Collection agencies are allowed to:

Correct AnswerverifiedShow Answer

Which one of the following is often the source of the least expensive loan?

Correct AnswerverifiedShow Answer

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

Chapter 7 bankruptcy is also known as straight bankruptcy.

Correct AnswerverifiedShow Answer

What are the major sources of consumer credit?

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

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

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
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
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