| A trust has the purpose of: | managing the assets of a person |
| The CCCS aids families by: | setting up a budget for them. |
| Which of the following is a disadvantage of using credit? | (It Is NOT “The use of credit allows for the purchase of goods even when funds are low”) |
| If you have a problem with your creditor, the best solution is to: | solve your problem directly with the creditor. |
| If you think that your bill is wrong, you should first: | (It Is NOT “contact the local credit bureau and inform it of the billing error”) |
| Which 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? | Chapter 13 |
| An all-purpose account that provides several services is a(n): | asset management account. |
| Which of the following is a deposit institution? | A credit union |
| Jake Skinner purchases a big screen TV on credit and will repay the loan with one payment at the end of 90 days. What type of credit did Jake use? | Single lump sum credit |
| Based on the following information, what amount would be subtracted from the bank balance side of a checking account reconciliation? Service charge $12, Outstanding checks $145, Interest $3.50, Deposit in transit $80 | (It Is NOT “$157”) |
| In a Chapter 7 bankruptcy, a debtor: | is required to draw up a petition listing all assets and liabilities. |
| Debt-to-equity ratio is: | calculated by dividing total liabilities by net worth. |
| If creditors add finance charges after subtracting payments made during the billing period, this is called the: | adjusted balance method. |
| An account at a commercial bank designed for people who want to earn a higher savings rate is a(n) __________ account. | (It Is NOT “regular savings account”) |
| Which of the following is NOT a source that provides data to credit bureaus? | Internal Revenue Service |
| A certificate of deposit usually has: | limited liquidity. |
| If creditors give you no credit for payments made during the billing period, this is called the: | previous balance method. |
| If you borrow $100 at 10 percent simple annual interest and repay it in one lump sum at the end of one year, you will have to pay: | $110. |
| If your monthly net (after-tax) income is $1,500, what should be your maximum amount spent on credit payments? | $300 |
| Kathy purchased a $2,000 digital TV from Young’s Appliances. She will make 12 equal payments over the next year to pay for it. She is using: | closed-end credit. |
