Ch 6: Personal Finance

Front 1

In financial institutions, the sources of credit

Back 1

come in all shapes and sizes & play an important role in our economy

Front 2

By evaluating your credit options, you can

Back 2

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

Front 3

Which of the following financing methods provides a float period

Back 3

credit card

Front 4

A float refers to:

Back 4

a period when no interest is charged

Front 5

Which of the following offer the least expensive loan?

Back 5

parents or family members

Front 6

Which of the following tend to be expensive loans?

Back 6

retailers

Front 7

The interest rate on a collateralized loan is relatively low, but one of the disadvantages of such loans is that

Back 7

the assets used as collateral are tied up until the loan has been repaid

Front 8

You can often obtain medium-priced loans from

Back 8

commercial banks and credit unions

Front 9

Membership in credit unions has been

Back 9

growing steadily

Front 10

Compounding the annual percentage rate four times in a year is equivalent to

Back 10

the effective annual rate annually

Front 11

If a bank charges you interest up front then this loan is called a ______ loan

Back 11

discount

Front 12

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

Back 12

adjusted balance method

Front 13

If creditors give you no credit for payments made during the billing period, this is called the

Back 13

previous balance method

Front 14

The most commonly purchased type of credit insurance is

Back 14

credit life insurance

Front 15

Which type of credit insurance repays your debt in the event of a loss of income due to illness or injury?

Back 15

credit accident and health insurance

Front 16

Which of the following are signs of debt problems?

Back 16

foreclosure proceedings & overdue payments

Front 17

According to consumer affairs experts, one of the nation’s main family financial problems is

Back 17

over-indebtness

Front 18

If you default on your automobile loan

Back 18

no advance notive is req. b4 repossession

Front 19

If you have trouble paying your bills

Back 19

try to solve the problem with your creditor

Front 20

Most people who are unable to manage their debts are

Back 20

mostly honest people

Front 21

Consumer credit counseling services are basically concerned with

Back 21

preventing and solving the problems related to credit overextension

Front 22

Credit counselors will aid families by

Back 22

setting up a budget for them

Front 23

Non-profit credit counseling services are sometimes provided by

Back 23

all of them provide such services

Front 24

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?

Back 24

consumer proposal

Front 25

In a bankruptcy, a trustee

Back 25

is required to draw up a petition listing all of your assets and liabilities

Front 26

A max 5 year plan for paying creditors all or a portion of outstanding debt is referred to as a consumer

Back 26

proposal

Front 27

What effective rate of interest is being charged when the quoted APR is 6%, compounded semi-annually?

Back 27

6.09

Front 28

In order to min. complications, all loans to and from family members should

Back 28

all of the above; be in writing, state the interest rate, include repayment schedule, include final payment due

Front 29

By current Canadian law, a lender in Canada can legally charge up to ___ per annum

Back 29

60%

Front 30

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

Back 30

210

Front 31

According to many consumer organizations

Back 31

credit life insurance is not needed by most borrowers

Front 32

Consolidation loans

Back 32

have the advantage of a single interest rate on the full amount of your selected debts

Front 33

To be eligible for the insolvency protection application called a consumer proposal

Back 33

you must be insolvent and less than $75000 in debt, excluding a mortgage on your principal residence