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33 Cards in this Set

  • Front
  • Back
In financial institutions, the sources of credit
come in all shapes and sizes & play an important role in our economy
By evaluating your credit options, you can
reduce you finance charges, reconsider your decision to borrow money, discover a less expensive type of loan, and find a lender that charges a lower rate
Which of the following financing methods provides a float period
credit card
A float refers to:
a period when no interest is charged
Which of the following offer the least expensive loan?
parents or family members
Which of the following tend to be expensive loans?
retailers
The interest rate on a collateralized loan is relatively low, but one of the disadvantages of such loans is that
the assets used as collateral are tied up until the loan has been repaid
You can often obtain medium-priced loans from
commercial banks and credit unions
Membership in credit unions has been
growing steadily
Compounding the annual percentage rate four times in a year is equivalent to
the effective annual rate annually
If a bank charges you interest up front then this loan is called a ______ loan
discount
If creditors add finance charges after subtracting payments made during the billing period, this is called the
adjusted balance method
If creditors give you no credit for payments made during the billing period, this is called the
previous balance method
The most commonly purchased type of credit insurance is
credit life insurance
Which type of credit insurance repays your debt in the event of a loss of income due to illness or injury?
credit accident and health insurance
Which of the following are signs of debt problems?
foreclosure proceedings & overdue payments
According to consumer affairs experts, one of the nation’s main family financial problems is
over-indebtness
If you default on your automobile loan
no advance notive is req. b4 repossession
If you have trouble paying your bills
try to solve the problem with your creditor
Most people who are unable to manage their debts are
mostly honest people
Consumer credit counseling services are basically concerned with
preventing and solving the problems related to credit overextension
Credit counselors will aid families by
setting up a budget for them
Non-profit credit counseling services are sometimes provided by
all of them provide such services
Which of the following allows a debtor with regular income to extinguish his or her debt from future earnings or other property over a period of time?
consumer proposal
In a bankruptcy, a trustee
is required to draw up a petition listing all of your assets and liabilities
A max 5 year plan for paying creditors all or a portion of outstanding debt is referred to as a consumer
proposal
What effective rate of interest is being charged when the quoted APR is 6%, compounded semi-annually?
6.09
In order to min. complications, all loans to and from family members should
all of the above; be in writing, state the interest rate, include repayment schedule, include final payment due
By current Canadian law, a lender in Canada can legally charge up to ___ per annum
60%
According to current Canada Student Grants Program, the Government og Canada will provide up to a max of ___ in loans per week of study to eligible students
210
According to many consumer organizations
credit life insurance is not needed by most borrowers
Consolidation loans
have the advantage of a single interest rate on the full amount of your selected debts
To be eligible for the insolvency protection application called a consumer proposal
you must be insolvent and less than $75000 in debt, excluding a mortgage on your principal residence