Question 1

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

Question 2

In what ways can you lower the risk to your lender in order to reduce your borrowing costs?

Accepted Answer

The answer of In what ways can you lower the...

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 D)
G) B) and C)

Question 4

If a new-car loan costs 6%,a used-car loan would cost approximately ___ percent.

Accepted Answer

A)  0
B)  1
C)  6
D)  7
E)  12F) None of the above
G) All of the above

Question 5

The rule of 78s formula dictates that you pay less interest at the beginning of a loan.

Accepted Answer

A) True 
 B)False

Question 6

In a straight bankruptcy,many,but not all,debts are forgiven.

Accepted Answer

A) True 
 B)False

Question 7

If creditors add finance charges after subtracting payments made during the billing period,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 D)
G) A) and C)

Question 8

Jeff Bloom wants to have a house just like the one his parents had when he was a teenager.He finds the house he wants and gets an interest-only loan on it for the first five years.Which one of the answers best explains Jeff'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 E)
G) A) and D)

Question 9

What can you do if you are unable to meet your credit obligations?

Accepted Answer

The answer of What can you do if you are...

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

Jeff Bloom wants to have a house just like the one his parents had when he was a teenager.He finds the house he wants and gets an interest-only loan on it for the first five years.Which one of the answers best explains Jeff's spending?

Correct Answer
verified

If a new-car loan costs 6%,a used-car loan would cost approximately ___ percent.

Correct Answer
verified

In a straight bankruptcy,many,but not all,debts are forgiven.

Correct Answer
verified

What can you do if you are unable to meet your credit obligations?

Correct Answer
verified

In what ways can you lower the risk to your lender in order to reduce your borrowing costs?

Correct Answer
verified

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

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

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 Answer
verified

The rule of 78s formula dictates that you pay less interest at the beginning of a loan.

Correct Answer
verified

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

Jeff Bloom wants to have a house just like the one his parents had when he was a teenager.He finds the house he wants and gets an interest-only loan on it for the first five years.Which one of the answers best explains Jeff's spending?

Correct AnswerverifiedShow Answer

If a new-car loan costs 6%,a used-car loan would cost approximately ___ percent.

Correct AnswerverifiedShow Answer

In a straight bankruptcy,many,but not all,debts are forgiven.

Correct AnswerverifiedShow Answer

What can you do if you are unable to meet your credit obligations?

Correct AnswerverifiedShow Answer

In what ways can you lower the risk to your lender in order to reduce your borrowing costs?

Correct AnswerverifiedShow Answer

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

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

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

The rule of 78s formula dictates that you pay less interest at the beginning of a loan.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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