Download Chapter 7 - This is not homework, just sample questions

Survey
yes no Was this document useful for you?
   Thank you for your participation!

* Your assessment is very important for improving the work of artificial intelligence, which forms the content of this project

Document related concepts
no text concepts found
Transcript 
Chapter 7 Homework
TRUE-FALSE
1 Parents or family members are often the source of the least expensive loans.
.
2. The consumer finance companies specialize in personal installment loans and second
mortgages.
3. The finance charge is the percentage cost (or relative cost) of credit on a yearly basis.
Thmost
4.
basic method of calculating interest is the compound interest formula.
5. The Federal Trade Commission enforces the Fair Debt Collection Practices Act.
MULTIPLE CHOICE
_____6.
The best method of comparing credit cost is the
a. rule of 78s.
b. finance charge and the APR.
c. declining balance method.
d. add-on and adjusted balance method.
_____7.
Which consumer credit source often lend to consumers without established
credit history?
a. Commercial bank
b. Savings and loan association
c. Credit union
d. Finance company
8.
You can often obtain medium-priced loans from
a. commercial banks and credit unions.
b. parents or family members.
c. banks through credit cards.
d. finance companies and retailers.
9. Some creditors add finance charges after subtracting payments made during
the billing period, this is called the
a. previous balance method.
b. average daily balance method.
c. adjusted balance method.
d. annual percentage rate method.
10
.
A Consumer Credit Counseling Service is a
a. local, nonprofit organization affiliated with the National Foundation for
Consumer Credit.
b. profit organization operated by the Better Business Bureau.
c. governmental institution.
d. lending institution that helps families with severe financial difficulties.
Related documents