Personal Financial Planning 13th Edition by Lawrence J. Gitman Test Bank

<< Pharmacological Aspects of Nursing Care 8Th Ed By Broyles Reiss Evans Test Bank Personality Psychology Domain of Knowledge about Human Nature 5th Edition by Randy J. Larsen -Test Bank >>
Product Code: 222
Availability: In Stock
Price: $24.99
Qty:     - OR -   Add to Wish List
Add to Compare

Personal Financial Planning 13th Edition by Lawrence J. Gitman Test Bank

Description

WITH ANSWERS

Personal Financial Planning 13th Edition by Lawrence J. Gitman Test Bank

Chapter 6Using Credit

 

TRUE/FALSE

 

  1. Using credit is the ideal way to provide for financial emergencies.

 

ANS:  F                    PTS:   1                    DIF:    Easy               OBJ:   LO: 6-1

NAT:  BUSPROG: Analytic skills             STA:   DISC: Capital Budgeting and Cost of Capital

KEY:  Blooms: Comprehension

 

  1. Saving is the preferred way to provide for financial emergencies.

 

ANS:  T                    PTS:   1                    DIF:    Easy               OBJ:   LO: 6-1

NAT:  BUSPROG: Analytic skills             STA:   DISC: Capital Budgeting and Cost of Capital

KEY:  Blooms: Comprehension

 

  1. Paying only the minimum payment each time on a credit card usually enables one to pay off the balance fairly quickly.

 

ANS:  F                    PTS:   1                    DIF:    Easy               OBJ:   LO: 6-1

NAT:  BUSPROG: Analytic skills             STA:   DISC: Capital Budgeting and Cost of Capital

KEY:  Blooms: Comprehension

 

  1. One can be overusing credit even though he can afford to make minimum monthly payments on time.

 

ANS:  T                    PTS:   1                    DIF:    Easy               OBJ:   LO: 6-1

NAT:  BUSPROG: Analytic skills             STA:   DISC: Capital Budgeting and Cost of Capital

KEY:  Blooms: Knowledge

 

  1. Credit should not consistently be used for non-durable goods.

 

ANS:  T                    PTS:   1                    DIF:    Easy               OBJ:   LO: 6-1

NAT:  BUSPROG: Analytic skills             STA:   DISC: Capital Budgeting and Cost of Capital

KEY:  Blooms: Knowledge

 

  1. Credit cards with very low minimum balance requirements are in the consumers best interest.

 

ANS:  F                    PTS:   1                    DIF:    Moderate        OBJ:   LO: 6-1

NAT:  BUSPROG: Analytic skills             STA:   DISC: Capital Budgeting and Cost of Capital

KEY:  Blooms: Analysis

 

  1. One should not use credit to purchase food, clothing, and other non-durables, even if it is only for convenience and the balance will be totally paid upon billing.

 

ANS:  T                    PTS:   1                    DIF:    Moderate        OBJ:   LO: 6-1

NAT:  BUSPROG: Analytic skills             STA:   DISC: Capital Budgeting and Cost of Capital

KEY:  Blooms: Analysis

 

  1. Never adding up all ones bills is one of the signs that one may be headed for serious credit problems.

 

ANS:  T                    PTS:   1                    DIF:    Easy               OBJ:   LO: 6-1

NAT:  BUSPROG: Analytic skills             STA:   DISC: Capital Budgeting and Cost of Capital

KEY:  Blooms: Comprehension

 

  1. Using more than 20 percent of ones take-home income to pay off consumer debt is one of the signs that one may be headed for serious credit problems.

 

ANS:  T                    PTS:   1                    DIF:    Easy               OBJ:   LO: 6-1

NAT:  BUSPROG: Analytic skills             STA:   DISC: Capital Budgeting and Cost of Capital

KEY:  Blooms: Knowledge

 

  1. Having a checking account tells a creditor that you have some experience in managing your own funds.

 

ANS:  T                    PTS:   1                    DIF:    Easy               OBJ:   LO: 6-2

NAT:  BUSPROG: Analytic skills             STA:   DISC: Capital Budgeting and Cost of Capital

KEY:  Blooms: Knowledge

 

  1. Always paying cash is helpful in establishing a high level of creditworthiness.

 

ANS:  F                    PTS:   1                    DIF:    Moderate        OBJ:   LO: 6-2

NAT:  BUSPROG: Analytic skills             STA:   DISC: Capital Budgeting and Cost of Capital

KEY:  Blooms: Analysis

 

  1. Having arranged and fully repaid a small loan should help improve creditworthiness.

 

ANS:  T                    PTS:   1                    DIF:    Easy               OBJ:   LO: 6-2

NAT:  BUSPROG: Analytic skills             STA:   DISC: Capital Budgeting and Cost of Capital

KEY:  Blooms: Comprehension

 

  1. The purpose of a credit report is to evaluate the kind of risk you pose to the lender.

 

ANS:  T                    PTS:   1                    DIF:    Easy               OBJ:   LO: 6-2

NAT:  BUSPROG: Analytic skills             STA:   DISC: Capital Budgeting and Cost of Capital

KEY:  Blooms: Knowledge

 

  1. Credit report is routinely used to predict credit worthiness.

 

ANS:  T                    PTS:   1                    DIF:    Easy               OBJ:   LO: 6-2

NAT:  BUSPROG: Analytic skills             STA:   DISC: Capital Budgeting and Cost of Capital

KEY:  Blooms: Knowledge

 

  1. Paying a loan off much quicker than scheduled is one way to build a good credit rating.

 

ANS:  T                    PTS:   1                    DIF:    Easy               OBJ:   LO: 6-2

NAT:  BUSPROG: Analytic skills             STA:   DISC: Capital Budgeting and Cost of Capital

KEY:  Blooms: Knowledge

 

  1. A debt safety ratio of 25% might be a signal of financial trouble ahead.

 

ANS:  T                    PTS:   1                    DIF:    Easy               OBJ:   LO: 6-2

NAT:  BUSPROG: Analytic skills             STA:   DISC: Capital Budgeting and Cost of Capital

KEY:  Blooms: Knowledge

 

  1. A debt safety ratio of 5% would generally be a signal of financial trouble ahead.

 

ANS:  F                    PTS:   1                    DIF:    Easy               OBJ:   LO: 6-2

NAT:  BUSPROG: Analytic skills             STA:   DISC: Capital Budgeting and Cost of Capital

KEY:  Blooms: Knowledge

 

  1. It is safe, and often required, to give your Social Security number as a form of identification when using a credit card.

 

ANS:  F                    PTS:   1                    DIF:    Easy               OBJ:   LO: 6-2

NAT:  BUSPROG: Analytic skills             STA:   DISC: Capital Budgeting and Cost of Capital

KEY:  Blooms: Knowledge

 

  1. The most common forms of open account credit are bank credit cards and retail charge cards.

 

ANS:  T                    PTS:   1                    DIF:    Easy               OBJ:   LO: 6-3

NAT:  BUSPROG: Analytic skills             STA:   DISC: Capital Budgeting and Cost of Capital

KEY:  Blooms: Knowledge

 

  1. The most common forms of open account credit are travel and entertainment cards.

 

ANS:  F                    PTS:   1                    DIF:    Moderate        OBJ:   LO: 6-3

NAT:  BUSPROG: Analytic skills             STA:   DISC: Capital Budgeting and Cost of Capital

KEY:  Blooms: Knowledge

 

  1. Auto loans are an example of open-end credit since you can add to the debt when you purchase another vehicle.

 

ANS:  F                    PTS:   1                    DIF:    East                OBJ:   LO: 6-3

NAT:  BUSPROG: Analytic skills             STA:   DISC: Capital Budgeting and Cost of Capital

KEY:  Blooms: Comprehension

 

  1. A credit limit refers to the maximum amount the cardholder can owe the issuer at any point in time.

 

ANS:  T                    PTS:   1                    DIF:    Easy               OBJ:   LO: 6-3

NAT:  BUSPROG: Analytic skills             STA:   DISC: Capital Budgeting and Cost of Capital

KEY:  Blooms: Knowledge

 

  1. The key to credit worthiness is to keep your debt safety ratio as high as possible.

 

ANS:  F                    PTS:   1                    DIF:    Moderate        OBJ:   LO: 6-2

NAT:  BUSPROG: Analytic skills             STA:   DISC: Capital Budgeting and Cost of Capital

KEY:  Blooms: Knowledge

 

  1. Individuals with better credit ratings usually can secure higher credit limits.

 

ANS:  T                    PTS:   1                    DIF:    Easy               OBJ:   LO: 6-3

NAT:  BUSPROG: Analytic skills             STA:   DISC: Capital Budgeting and Cost of Capital

KEY:  Blooms: Knowledge

 

  1. Credit reports on individual borrowers are issued by credit unions reporting agencies.

 

ANS:  T                    PTS:   1                    DIF:    Easy               OBJ:   LO: 6-4

NAT:  BUSPROG: Analytic skills             STA:   DISC: Capital Budgeting and Cost of Capital

KEY:  Blooms: Knowledge

 

  1. Credit reports on individual borrowers are issued by credit card issuers.

 

ANS:  F                    PTS:   1                    DIF:    Moderate        OBJ:   LO: 6-4

NAT:  BUSPROG: Analytic skills             STA:   DISC: Capital Budgeting and Cost of Capital

KEY:  Blooms: Knowledge

 

  1. Being late on credit payments only 2-3 times per year pay label you a late payer in your credit file.

 

ANS:  T                    PTS:   1                    DIF:    Easy               OBJ:   LO: 6-3

NAT:  BUSPROG: Analytic skills             STA:   DISC: Capital Budgeting and Cost of Capital

KEY:  Blooms: Knowledge

 

  1. The required monthly payment on an open account will be the smaller of a minimum dollar amount or a specified percentage of the balance.

 

ANS:  F                    PTS:   1                    DIF:    Challenging    OBJ:   LO: 6-3

NAT:  BUSPROG: Analytic skills             STA:   DISC: Capital Budgeting and Cost of Capital

KEY:  Blooms: Analysis

 

  1. Bank credit cards represent the most common kind of open account credit.

 

ANS:  T                    PTS:   1                    DIF:    Easy               OBJ:   LO: 6-3

NAT:  BUSPROG: Analytic skills             STA:   DISC: Capital Budgeting and Cost of Capital

KEY:  Blooms: Knowledge

 

  1. Bank credit card cash advances will begin accruing interest charges immediately.

 

ANS:  T                    PTS:   1                    DIF:    Moderate        OBJ:   LO: 6-3

NAT:  BUSPROG: Analytic skills             STA:   DISC: Capital Budgeting and Cost of Capital

KEY:  Blooms: Knowledge

 

  1. Bank credit card purchases always begin accruing interest charges immediately.

 

ANS:  F                    PTS:   1                    DIF:    Challenging    OBJ:   LO: 6-3

NAT:  BUSPROG: Analytic skills             STA:   DISC: Capital Budgeting and Cost of Capital

KEY:  Blooms: Knowledge

 

  1. Advantages of balance transfers can include lower interest rates and the convenience of consolidation.

 

ANS:  T                    PTS:   1                    DIF:    Moderate        OBJ:   LO: 6-3

NAT:  BUSPROG: Analytic skills             STA:   DISC: Capital Budgeting and Cost of Capital

KEY:  Blooms: Analysis

 

  1. Balance transfers can be expensive, including fees and eventually high interest rates.

 

ANS:  T                    PTS:   1                    DIF:    Easy               OBJ:   LO: 6-3

NAT:  BUSPROG: Analytic skills             STA:   DISC: Capital Budgeting and Cost of Capital

KEY:  Blooms: Analysis

 

  1. Bank credit cards often offer features such as buyer protection plans for a fee to all customers.

 

ANS:  T                    PTS:   1                    DIF:    Easy               OBJ:   LO: 6-3

NAT:  BUSPROG: Analytic skills             STA:   DISC: Capital Budgeting and Cost of Capital

KEY:  Blooms: Knowledge

 

  1. Rebate credit cards work best for those who use the rebates, charge a lot, and do not carry high monthly balances.

 

ANS:  T                    PTS:   1                    DIF:    Moderate        OBJ:   LO: 6-3

NAT:  BUSPROG: Analytic skills             STA:   DISC: Capital Budgeting and Cost of Capital

KEY:  Blooms: Comprehension

 

  1. Generally speaking, the interest rates on credit cards are lower than any other form of credit.

 

ANS:  F                    PTS:   1                    DIF:    Moderate        OBJ:   LO: 6-3

NAT:  BUSPROG: Analytic skills             STA:   DISC: Capital Budgeting and Cost of Capital

KEY:  Blooms: Knowledge

 

  1. A revolving charge account requires the customers to pay off the debt 10 to 20 days after the billing date with no interest expense.

 

ANS:  F                    PTS:   1                    DIF:    Moderate        OBJ:   LO: 6-3

NAT:  BUSPROG: Analytic skills             STA:   DISC: Capital Budgeting and Cost of Capital

KEY:  Blooms: Knowledge

 

  1. Thirty-day or regular charge accounts require the customers to pay off the debt 10 to 20 days after the billing date with no interest expense.

 

ANS:  T                    PTS:   1                    DIF:    Moderate        OBJ:   LO: 6-3

NAT:  BUSPROG: Analytic skills             STA:   DISC: Capital Budgeting and Cost of Capital

KEY:  Blooms: Knowledge

 

  1. Interest rates on credit cards tend to be lower than most other forms of consumer credit.

 

ANS:  F                    PTS:   1                    DIF:    Easy               OBJ:   LO: 6-3

NAT:  BUSPROG: Analytic skills             STA:   DISC: Capital Budgeting and Cost of Capital

KEY:  Blooms: Knowledge

 

  1. Most organizations that issue credit cards have basically the same qualifications for card applicants.

 

ANS:  F                    PTS:   1                    DIF:    Moderate        OBJ:   LO: 6-3

NAT:  BUSPROG: Analytic skills             STA:   DISC: Capital Budgeting and Cost of Capital

KEY:  Blooms: Knowledge

 

  1. Credit cards often have penalties for late payment and for exceeding credit limits.

 

ANS:  T                    PTS:   1                    DIF:    Easy               OBJ:   LO: 6-3

NAT:  BUSPROG: Analytic skills             STA:   DISC: Capital Budgeting and Cost of Capital

KEY:  Blooms: Knowledge

 

  1. Open account credit is a form of credit extended to a consumer in advance of any transaction.

 

ANS:  T                    PTS:   1                    DIF:    Easy               OBJ:   LO: 6-3

NAT:  BUSPROG: Analytic skills             STA:   DISC: Capital Budgeting and Cost of Capital

KEY:  Blooms: Knowledge

 

  1. The most common method used by lenders to apply finance charges to credit cards is the average daily balance including new purchases method.

 

ANS:  T                    PTS:   1                    DIF:    Challenging    OBJ:   LO: 6-4

NAT:  BUSPROG: Analytic skills             STA:   DISC: Capital Budgeting and Cost of Capital

KEY:  Blooms: Knowledge

 

  1. Nearly all credit cards have annual fees.

 

ANS:  F                    PTS:   1                    DIF:    Moderate        OBJ:   LO: 6-3

NAT:  BUSPROG: Analytic skills             STA:   DISC: Capital Budgeting and Cost of Capital

KEY:  Blooms: Knowledge

 

  1. Credit card users can often avoid finance charges entirely by paying their total balances by the stated due date.

 

ANS:  T                    PTS:   1                    DIF:    Easy               OBJ:   LO: 6-3

NAT:  BUSPROG: Analytic skills             STA:   DISC: Capital Budgeting and Cost of Capital

KEY:  Blooms: Knowledge

 

  1. The grace period on a credit card starts on the billing date and ends on the date the lender should receive the payment.

 

ANS:  F                    PTS:   1                    DIF:    Challenging    OBJ:   LO: 6-3

NAT:  BUSPROG: Analytic skills             STA:   DISC: Capital Budgeting and Cost of Capital

KEY:  Blooms: Analysis

 

  1. Secured credit cards require that the card holder puts up collateral in order to get the card.

 

ANS:  T                    PTS:   1                    DIF:    Moderate        OBJ:   LO: 6-3

NAT:  BUSPROG: Analytic skills             STA:   DISC: Capital Budgeting and Cost of Capital

KEY:  Blooms: Knowledge

 

  1. Student credit cards are structured much differently than regular credit cards.

 

ANS:  F                    PTS:   1                    DIF:    Moderate        OBJ:   LO: 6-3

NAT:  BUSPROG: Analytic skills             STA:   DISC: Capital Budgeting and Cost of Capital

KEY:  Blooms: Knowledge

 

  1. Debit cards are a form of credit that is very convenient to use.

 

ANS:  F                    PTS:   1                    DIF:    Moderate        OBJ:   LO: 6-3

NAT:  BUSPROG: Analytic skills             STA:   DISC: Capital Budgeting and Cost of Capital

KEY:  Blooms: Knowledge

 

  1. Debit cards look like credit cards, but they work like checks.

 

ANS:  T                    PTS:   1                    DIF:    Easy               OBJ:   LO:6-3

NAT:  BUSPROG: Analytic skills             STA:   DISC: Capital Budgeting and Cost of Capital

KEY:  Blooms: Knowledge

 

  1. Prepaid cards are a form of credit that is very convenient to use and do not charge a service fee.

 

ANS:  F                    PTS:   1                    DIF:    Moderate        OBJ:   LO: 6-3

NAT:  BUSPROG: Analytic skills             STA:   DISC: Capital Budgeting and Cost of Capital

KEY:  Blooms: Comprehension

 

  1. Prepaid cards are used to pay for things, with the purchase amount electronically deducted from the card.

 

ANS:  T                    PTS:   1                    DIF:    Easy               OBJ:   LO: 6-3

NAT:  BUSPROG: Analytic skills             STA:   DISC: Capital Budgeting and Cost of Capital

KEY:  Blooms: Comprehension

 

  1. Revolving credit lines are often accessed by writing checks.

 

ANS:  T                    PTS:   1                    DIF:    Easy               OBJ:   LO: 6-3

NAT:  BUSPROG: Analytic skills             STA:   DISC: Capital Budgeting and Cost of Capital

KEY:  Blooms: Knowledge

 

  1. An overdraft protection line of credit allows one to routinely bounce checks with little or no adverse consequences.

 

ANS:  F                    PTS:   1                    DIF:    Moderate        OBJ:   LO: 6-3

NAT:  BUSPROG: Analytic skills             STA:   DISC: Capital Budgeting and Cost of Capital

KEY:  Blooms: Comprehension

 

  1. Unsecured lines of credit provide tax advantages if you itemize deductions.

 

ANS:  F                    PTS:   1                    DIF:    Challenging    OBJ:   LO: 6-3

NAT:  BUSPROG: Analytic skills             STA:   DISC: Capital Budgeting and Cost of Capital

KEY:  Blooms: Analysis

 

  1. Unsecured lines of credit are easy to use and often use some form of collateral as default protection.

 

ANS:  F                    PTS:   1                    DIF:    Challenging    OBJ:   LO: 6-3

NAT:  BUSPROG: Analytic skills             STA:   DISC: Capital Budgeting and Cost of Capital

KEY:  Blooms: Analysis

 

  1. The proceeds of a home equity loan can be used for just about any purpose, and the interest paid is usually tax deductible.

 

ANS:  T                    PTS:   1                    DIF:    Moderate        OBJ:   LO: 6-3

NAT:  BUSPROG: Analytic skills             STA:   DISC: Capital Budgeting and Cost of Capital

KEY:  Blooms: Comprehension

 

  1. One can lose his home if he does not repay his home equity line of credit.

 

ANS:  T                    PTS:   1                    DIF:    Easy               OBJ:   LO: 6-3

NAT:  BUSPROG: Analytic skills             STA:   DISC: Capital Budgeting and Cost of Capital

KEY:  Blooms: Comprehension

 

  1. Home equity loans are one of the least expensive forms of consumer credit.

 

ANS:  T                    PTS:   1                    DIF:    Easy               OBJ:   LO: 6-3

NAT:  BUSPROG: Analytic skills             STA:   DISC: Capital Budgeting and Cost of Capital

KEY:  Blooms: Comprehension

 

  1. For someone with a good credit rating, lenders will typically lend up to 100% of equity in a home using a home equity credit line.

 

ANS:  F                    PTS:   1                    DIF:    Moderate        OBJ:   LO: 6-3

NAT:  BUSPROG: Analytic skills             STA:   DISC: Capital Budgeting and Cost of Capital

KEY:  Blooms: Knowledge

 

  1. A credit applicant will be granted credit only after establishing a complete file at the local credit bureau.

 

ANS:  F                    PTS:   1                    DIF:    Moderate        OBJ:   LO: 6-4

NAT:  BUSPROG: Analytic skills             STA:   DISC: Capital Budgeting and Cost of Capital

KEY:  Blooms: Knowledge

 

  1. For a fee, credit bureaus can provide credit scores for prospective borrowers.

 

ANS:  T                    PTS:   1                    DIF:    Easy               OBJ:   LO: 6-4

NAT:  BUSPROG: Analytic skills             STA:   DISC: Capital Budgeting and Cost of Capital

KEY:  Blooms: Knowledge

 

  1. Credit bureaus provide information about prospective borrowers.

 

ANS:  T                    PTS:   1                    DIF:    Easy               OBJ:   LO: 6-4

NAT:  BUSPROG: Analytic skills             STA:   DISC: Capital Budgeting and Cost of Capital

KEY:  Blooms: Knowledge

 

  1. One can and should check his credit bureau file regularly.

 

ANS:  T                    PTS:   1                    DIF:    Moderate        OBJ:   LO: 6-4

NAT:  BUSPROG: Analytic skills             STA:   DISC: Capital Budgeting and Cost of Capital

KEY:  Blooms: Application

 

  1. Credit bureau files often include information such as political and religious affiliations in addition to financial information.

 

ANS:  F                    PTS:   1                    DIF:    Easy               OBJ:   LO: 6-4

NAT:  BUSPROG: Analytic skills             STA:   DISC: Capital Budgeting and Cost of Capital

KEY:  Blooms: Knowledge

 

  1. Credit scoring systems are often used by lenders to determine your creditworthiness.

 

ANS:  T                    PTS:   1                    DIF:    Easy               OBJ:   LO: 6-4

NAT:  BUSPROG: Analytic skills             STA:   DISC: Capital Budgeting and Cost of Capital

KEY:  Blooms: Knowledge

 

  1. Chapter 7 bankruptcies remain in your credit file for 7 years.

 

ANS:  F                    PTS:   1                    DIF:    Challenging    OBJ:   LO: 6-6

NAT:  BUSPROG: Analytic skills             STA:   DISC: Capital Budgeting and Cost of Capital

KEY:  Blooms: Knowledge

 

  1. Your credit limit is determined by a number of factors, such as financial position, earning power, etc.

 

ANS:  T                    PTS:   1                    DIF:    Easy               OBJ:   LO: 6-4

NAT:  BUSPROG: Analytic skills             STA:   DISC: Capital Budgeting and Cost of Capital

KEY:  Blooms: Knowledge

 

  1. A credit card users credit rating will be harmed if she pays only the minimum monthly payment on a credit card.

 

ANS:  F                    PTS:   1                    DIF:    Challenging    OBJ:   LO: 6-4

NAT:  BUSPROG: Analytic skills             STA:   DISC: Capital Budgeting and Cost of Capital

KEY:  Blooms: Analysis

 

  1. The more credit cards one has, the better ones credit score.

 

ANS:  F                    PTS:   1                    DIF:    Moderate        OBJ:   LO: 6-4

NAT:  BUSPROG: Analytic skills             STA:   DISC: Capital Budgeting and Cost of Capital

KEY:  Blooms: Analysis

 

  1. Generally, finance charges are computed only on the unpaid balance from previous months purchases.

 

ANS:  F                    PTS:   1                    DIF:    Moderate        OBJ:   LO: 6-4

NAT:  BUSPROG: Analytic skills             STA:   DISC: Capital Budgeting and Cost of Capital

KEY:  Blooms: Analysis

 

  1. The most common method of computing finance charges on a credit card is the average daily balance method including new purchases.

 

ANS:  T                    PTS:   1                    DIF:    Moderate        OBJ:   LO: 6-4

NAT:  BUSPROG: Analytic skills             STA:   DISC: Capital Budgeting and Cost of Capital

KEY:  Blooms: Knowledge

 

  1. The amount of finance charges one pays on a credit card depends only on APR and the amount one charges.

 

ANS:  F                    PTS:   1                    DIF:    Challenging    OBJ:   LO: 6-4

NAT:  BUSPROG: Analytic skills             STA:   DISC: Capital Budgeting and Cost of Capital

KEY:  Blooms: Analysis

 

  1. A womans income can legally be discounted when she applies for credit.

 

ANS:  F                    PTS:   1                    DIF:    Easy               OBJ:   LO: 6-4

NAT:  BUSPROG: Analytic skills             STA:   DISC: Capital Budgeting and Cost of Capital

KEY:  Blooms: Knowledge

 

  1. The intent of a Wage Earner Plan is to eliminate most of the debtors obligations.

 

ANS:  F                    PTS:   1                    DIF:    Challenging    OBJ:   LO: 6-6

NAT:  BUSPROG: Analytic skills             STA:   DISC: Capital Budgeting and Cost of Capital

KEY:  Blooms: Evaluation

 

  1. A Chapter 13 bankruptcy filing would result in the discharge of most of your debts.

 

ANS:  F                    PTS:   1                    DIF:    Challenging    OBJ:   LO: 6-6

NAT:  BUSPROG: Analytic skills             STA:   DISC: Capital Budgeting and Cost of Capital

KEY:  Blooms: Evaluation

 

  1. Families who have a source of income and who want to retain their assets above the protected amount would select Chapter 13 rather than Chapter 7 bankruptcy.

 

ANS:  T                    PTS:   1                    DIF:    Challenging    OBJ:   LO: 6-6

NAT:  BUSPROG: Analytic skills             STA:   DISC: Capital Budgeting and Cost of Capital

KEY:  Blooms: Evaluation

 

  1. The majority of persons filing bankruptcy file Chapter 7 bankruptcy.

 

ANS:  T                    PTS:   1                    DIF:    Easy               OBJ:   LO: 6-6

NAT:  BUSPROG: Analytic skills             STA:   DISC: Capital Budgeting and Cost of Capital

KEY:  Blooms: Knowledge

 

  1. The Wage Earner Planner requires debtors to give up most of their assets.

 

ANS:  F                    PTS:   1                    DIF:    Moderate        OBJ:   LO: 6-6

NAT:  BUSPROG: Analytic skills             STA:   DISC: Capital Budgeting and Cost of Capital

KEY:  Blooms: Evaluation

 

  1. Before filing for bankruptcy, debtors should consider seeking the help of a credit counselor.

 

ANS:  T                    PTS:   1                    DIF:    Easy               OBJ:   LO: 6-6

NAT:  BUSPROG: Analytic skills             STA:   DISC: Capital Budgeting and Cost of Capital

KEY:  Blooms: Knowledge

 

  1. Identity theft is a growing problem that could damage your credit rating.

 

ANS:  T                    PTS:   1                    DIF:    Easy               OBJ:   LO: 6-6

NAT:  BUSPROG: Analytic skills             STA:   DISC: Capital Budgeting and Cost of Capital

KEY:  Blooms: Knowledge

 

  1. It is recommended that you never give your credit card account number out over the phone.

 

ANS:  F                    PTS:   1                    DIF:    Challenging    OBJ:   LO: 6-6

NAT:  BUSPROG: Analytic skills             STA:   DISC: Capital Budgeting and Cost of Capital

KEY:  Blooms: Evaluation

 

  1. If you initiated the telephone call, it is okay to give your credit card account number when ordering/purchasing from major catalog houses, airlines, hotels, and so on.

 

ANS:  T                    PTS:   1                    DIF:    Challenging    OBJ:   LO: 6-6

NAT:  BUSPROG: Analytic skills             STA:   DISC: Capital Budgeting and Cost of Capital

KEY:  Blooms: Evaluation

 

  1. Auto loans and mortgage loans are about equal in terms of their relative share of average household liabilities.

 

ANS:  F                    PTS:   1                    DIF:    Moderate        OBJ:   LO: 6-1

NAT:  BUSPROG: Analytic skills             KEY:  Blooms: Knowledge

 

  1. The majority of reduction in consumer indebtedness is due to home and consumer loan defaults.

 

ANS:  T                    PTS:   1                    DIF:    Moderate        OBJ:   LO: 6-1

NAT:  BUSPROG: Analytic skills             KEY:  Blooms: Knowledge

 

The decline in housing prices made it harder for households to refinance their mortgages.

 

ANS:  T                    PTS:   1                    DIF:    Moderate        OBJ:   LO: 6-1

NAT:  BUSPROG: Analytic skills             KEY:  Blooms: Analysis

 

Discount store and online sales have dropped in the aftermath of the recession.

 

ANS:  F                    PTS:   1                    DIF:    Moderate        OBJ:   LO: 6-1

NAT:  BUSPROG: Analytic skills             KEY:  Blooms: Knowledge

 

  1. After the Credit Card Act of 2009 was passed, late payments dropped but defaults increased.

 

ANS:  F                    PTS:   1                    DIF:    Challenging&nbs

Write a review

Your Name:


Your Review: Note: HTML is not translated!

Rating: Bad           Good

Enter the code in the box below:



 

Once the order is placed, the order will be delivered to your email less than 24 hours, mostly within 4 hours. 

If you have questions, you can contact us here