Question 1

Which of the following is True about credit bureaus in Canada?

Accepted Answer

A)  There are two federally appointed credit bureaus in Canada.
B)  It is impossible to have a better credit score at one bureau than another.
C)  Lenders may access your credit information without your permission.
D)  Lenders may use more than one credit bureau for information.

Question 2

Posing as an employee of a brokerage firm to obtain information to allegedly update your account information is an example of

Accepted Answer

A)  phishing.
B)  pharming.
C)  pretexting.
D)  skimming.

Question 3

Which of the following is the most serious threat from identity theft?

Accepted Answer

A)  Criminal activities attributed to the victim
B)  The financial cost to society
C)  Loss of access to credit
D)  Credit card charges made by the perpetrator

Question 4

What would be the real cost of borrowing in the following case? A home equity loan is advertised at three percent compounded monthly,however,there is a legal fee of $400 and appraisal fee of $450 to set up the house as collateral.If Sarah needs to borrow $20 000 for one year,at which time will be able to repay the full amount,what is the effective rate of borrowing the $20 000 for the year?

Accepted Answer

A)  3) 04%
B)  7) 29%
C)  7) 25%
D)  4) 25%

Question 5

If you are a victim of identity theft,you may be turned down for employment as a result of incorrect background information.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is not an element of a credit report?

Accepted Answer

A)  Employer
B)  Length of relationship with creditors
C)  Marital status
D)  Your previous address

Question 7

If a buyer has limited capital,leasing a car will usually require lower monthly payments than a car loan.

Accepted Answer

A) True 
 B)False

Question 8

A house was purchased for $300 000 and has a market value of $325 000 and a mortgage of $213 000.The equity in this house is

Accepted Answer

A)  $87 000.
B)  34.5 percent.
C)  $112 000.
D)  $25 000.

Question 9

In considering the True cost of a personal loan,if you used collateral to reduce the interest charge,then the appraisal fee charged to evaluate the assets should not be considered part of the cost of borrowing.

Accepted Answer

A) True 
 B)False

Question 10

Someone with a credit score of 800 will pay a higher interest rate than someone with a score of 820.

Accepted Answer

A) True 
 B)False

Question 11

One of the greatest benefits of leasing a car is that you do not have the hassles of ownership.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following statements is True regarding a review of your credit agency report?

Accepted Answer

A)  You will not have authority to make corrections,as the information must come from a financial institution.
B)  It will help determine if there are credit cards you should apply for to improve your credit standing.
C)  It will reveal if you have sufficient income to carry additional debt.
D)  It will reveal deficiencies that you can work on to improve your credit rating.

Question 13

Which of the following is most accurate about interest rates in Canada?

Accepted Answer

A)  Charging a rate of three percent for a seven day payday loan is legal in Canada.
B)  As long as loan charges come in the form of fees,they are not included in interest rate calculations in Canada.
C)  Payday loan companies provide a necessary service and have permission to charge above the maximum loan rate in Canada.
D)  The maximum interest rate that can be charged on a consumer loan in Canada is 60 percent.

Question 14

Manipulating email viruses and host files to redirect users from legitimate commercial websites to bogus websites to obtain log-in names and passwords is referred to as

Accepted Answer

A)  pharming.
B)  phishing.
C)  skimming.
D)  trolling.

Question 15

A credit bureau report may include

Accepted Answer

A)  your account history.
B)  your spouse's name.
C)  a list of debtor contacts.
D)  All of the above

Question 16

Errors on credit reports can occur.If there is an error on your report,

Accepted Answer

A)  it is your responsibility to review it once a year for accuracy and inform of any errors.
B)  it can result in the credit agency being charged under the Fair Credit Reporting Act.
C)  the creditor reporting to the agency must correct it at your request.
D)  you must inform the Better Business Bureau to take your case to the authorities.

Question 17

Beth wants to borrow $18 000 for five years and she has a choice of two loans.One carries an annual rate of 10 percent and the other a 9.5 percent rate compounded semi-annually.Which is her best choice? Calculate the answer by comparing the effective annual rates of interest.

Accepted Answer

Math calculations are required to comput...

Question 18

For the best customers,a bank will lend money at

Accepted Answer

A)  the prime rate.
B)  the T-bill rate.
C)  the minimum term rate.
D)  the bank rate.

Question 19

Discuss six of the choices to be made when making a decision between leasing and buying a car with a personal loan.

Accepted Answer

The total cost of the lease versus the t...

Question 20

Which of the following is most accurate about second mortgages?

Accepted Answer

A)  Most people have two mortgages on their homes.
B)  The primary mortgage is for the down payment and the secondary mortgage is the main mortgage.
C)  A home equity loan is commonly a second mortgage.
D)  Second mortgages are last resort financing.

Exam 6: Managing Your Financial Resources - Assessing, Managing, and Securing Your Credit

Which of the following is the most serious threat from identity theft?

Correct Answer
verified

Which of the following statements is True regarding a review of your credit agency report?

Correct Answer
verified

Errors on credit reports can occur.If there is an error on your report,

Correct Answer
verified

Beth wants to borrow $18 000 for five years and she has a choice of two loans.One carries an annual rate of 10 percent and the other a 9.5 percent rate compounded semi-annually.Which is her best choice? Calculate the answer by comparing the effective annual rates of interest.

Correct Answer
verified
Math calculations are required to comput...
View Answer

Discuss six of the choices to be made when making a decision between leasing and buying a car with a personal loan.

Correct Answer
verified
The total cost of the lease versus the t...
View Answer

Correct Answer
verified

One of the greatest benefits of leasing a car is that you do not have the hassles of ownership.

Correct Answer
verified

A house was purchased for $300 000 and has a market value of $325 000 and a mortgage of $213 000.The equity in this house is

Correct Answer
verified

Manipulating email viruses and host files to redirect users from legitimate commercial websites to bogus websites to obtain log-in names and passwords is referred to as

Correct Answer
verified

Which of the following is True about credit bureaus in Canada?

Correct Answer
verified

Posing as an employee of a brokerage firm to obtain information to allegedly update your account information is an example of

Correct Answer
verified

If a buyer has limited capital,leasing a car will usually require lower monthly payments than a car loan.

Correct Answer
verified

If you are a victim of identity theft,you may be turned down for employment as a result of incorrect background information.

Correct Answer
verified

A credit bureau report may include

Correct Answer
verified

In considering the True cost of a personal loan,if you used collateral to reduce the interest charge,then the appraisal fee charged to evaluate the assets should not be considered part of the cost of borrowing.

Correct Answer
verified

Which of the following is most accurate about interest rates in Canada?

Correct Answer
verified

Someone with a credit score of 800 will pay a higher interest rate than someone with a score of 820.

Correct Answer
verified

For the best customers,a bank will lend money at

Correct Answer
verified

Which of the following is most accurate about second mortgages?

Correct Answer
verified

Which of the following is not an element of a credit report?

Correct Answer
verified

Exam 6: Managing Your Financial Resources - Assessing, Managing, and Securing Your Credit

Which of the following is the most serious threat from identity theft?

Correct AnswerverifiedShow Answer

Which of the following statements is True regarding a review of your credit agency report?

Correct AnswerverifiedShow Answer

Errors on credit reports can occur.If there is an error on your report,

Correct AnswerverifiedShow Answer

Beth wants to borrow $18 000 for five years and she has a choice of two loans.One carries an annual rate of 10 percent and the other a 9.5 percent rate compounded semi-annually.Which is her best choice? Calculate the answer by comparing the effective annual rates of interest.

Correct AnswerverifiedMath calculations are required to comput...View AnswerShow Answer

Discuss six of the choices to be made when making a decision between leasing and buying a car with a personal loan.

Correct AnswerverifiedThe total cost of the lease versus the t...View AnswerShow Answer

Correct AnswerverifiedShow Answer

One of the greatest benefits of leasing a car is that you do not have the hassles of ownership.

Correct AnswerverifiedShow Answer

A house was purchased for $300 000 and has a market value of $325 000 and a mortgage of $213 000.The equity in this house is

Correct AnswerverifiedShow Answer

Manipulating email viruses and host files to redirect users from legitimate commercial websites to bogus websites to obtain log-in names and passwords is referred to as

Correct AnswerverifiedShow Answer

Which of the following is True about credit bureaus in Canada?

Correct AnswerverifiedShow Answer

Posing as an employee of a brokerage firm to obtain information to allegedly update your account information is an example of

Correct AnswerverifiedShow Answer

If a buyer has limited capital,leasing a car will usually require lower monthly payments than a car loan.

Correct AnswerverifiedShow Answer

If you are a victim of identity theft,you may be turned down for employment as a result of incorrect background information.

Correct AnswerverifiedShow Answer

A credit bureau report may include

Correct AnswerverifiedShow Answer

In considering the True cost of a personal loan,if you used collateral to reduce the interest charge,then the appraisal fee charged to evaluate the assets should not be considered part of the cost of borrowing.

Correct AnswerverifiedShow Answer

Which of the following is most accurate about interest rates in Canada?

Correct AnswerverifiedShow Answer

Someone with a credit score of 800 will pay a higher interest rate than someone with a score of 820.

Correct AnswerverifiedShow Answer

For the best customers,a bank will lend money at

Correct AnswerverifiedShow Answer

Which of the following is most accurate about second mortgages?

Correct AnswerverifiedShow Answer

Which of the following is not an element of a credit report?

Correct AnswerverifiedShow Answer

Correct Answer
verified

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Correct Answer
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Math calculations are required to comput...
View Answer

Correct Answer
verified
The total cost of the lease versus the t...
View 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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