Question 1

If Marjorie Wilcox borrows $300 for one year with an APR of 21% and an annual service fee of $6,what is her total cost of credit?

Accepted Answer

A)  $6
B)  $15
C)  $21
D)  $69
E)  $74F) B) and C)
G) B) and D)

Question 2

You can often obtain medium-priced loans from commercial banks,federal savings banks,and credit unions.

Accepted Answer

A) True 
 B)False

Question 3

Before you sign a loan contract,make sure to:

Accepted Answer

A)  explore other financing options.
B)  contact several lenders.
C)  know your rights under the law.
D)  compare terms,interest rates,and other fees.
E)  All of theseF) B) and C)
G) A) and E)

Question 4

You just received a credit card application.Which of the following are included with this application?

Accepted Answer

A)  Minimum interest charges
B)  Annual percentage rate for purchases
C)  Penalty fees
D)  Method used to calculate balance
E)  All of theseF) A) and E)
G) All of the above

Question 5

Overindulgence of children is a frequent reason for indebtedness.

Accepted Answer

A) True 
 B)False

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

If Marjorie Wilcox borrows $300 for one year with an APR of 21% and an annual service fee of $6,what is her total cost of credit?

Correct Answer
verified

Overindulgence of children is a frequent reason for indebtedness.

Correct Answer
verified

Before you sign a loan contract,make sure to:

Correct Answer
verified

You can often obtain medium-priced loans from commercial banks,federal savings banks,and credit unions.

Correct Answer
verified

You just received a credit card application.Which of the following are included with this application?

Correct Answer
verified

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

If Marjorie Wilcox borrows $300 for one year with an APR of 21% and an annual service fee of $6,what is her total cost of credit?

Correct AnswerverifiedShow Answer

Overindulgence of children is a frequent reason for indebtedness.

Correct AnswerverifiedShow Answer

Before you sign a loan contract,make sure to:

Correct AnswerverifiedShow Answer

You can often obtain medium-priced loans from commercial banks,federal savings banks,and credit unions.

Correct AnswerverifiedShow Answer

You just received a credit card application.Which of the following are included with this application?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified