UCO Personal Finance Exam 2 - Anderson
T/F A limited warranty covers all aspects of the product and does not require the buyer to incur any of the costs for shipping and repairs.
False
T/F An implied warranty is usually in written form.
False
T/F Buying on credit is almost always cheaper than paying cash.
False
T/F Cooperative action is the settlement of a difference by a third party whose decision is legally binding.
False
T/F Credit unions frequently offer higher loan rates than other financial institutions.
False
T/F Higher returns on savings will usually result in greater liquidity.
False
T/F If friends or family use your name for credit without your permission, they are committing a crime.
False
T/F If you declare a Chapter 7 bankruptcy, you do not have to pay alimony, child support, or educational loans.
False
T/F Inflation increases the purchasing power of money.
False
T/F Most of the information in your credit file may be reported for only 3 years.
False
T/F Open dating information provides consumers with information about online dating.
False
T/F Service contracts are usually included in the cost of appliances and other high-priced items.
False
T/F The Consumer Credit Counseling Service will refinance all of your existing debts.
False
T/F The borrower's attitude toward his or her credit obligations is called collateral.
False
T/F The least expensive loans are available from finance companies and retailers.
False
T/F The more frequent the compounding, the less a person will earn on a savings account.
False
T/F When you cosign a loan, you do not have to guarantee this debt.
False
T/F You may be denied credit because you receive Social Security or public assistance. No, but you may not have enough income to qualify)
False
T/f A regular savings account usually offers a higher rate of return to savers than other savings plans.
False
Compounding refers to interest gained on your account or investment's previously earned interest.
True
T/F A "free" checking account with a minimum balance of $500 has an opportunity cost of lost interest.
True
T/F A 32-ounce package selling for $1.60 would have a unit price of 5¢ an ounce.
True
T/F A certificate of deposit usually has limited liquidity.
True
T/F A checking account would be considered more liquid than most other bank accounts.
True
T/F A class action suit allows many people with the same complaint to take action as a group.
True
T/F A debit card takes money from your account at the moment you buy goods or services.
True
T/F A government agency designed to provide consumer information and assist with consumer complaints is the Federal Trade Commission.
True
T/F A rate of return is the percentage increase in the value of your account or investment from earned interest.
True
T/F A restrictive endorsement will usually include the words "for deposit only."
True
T/F A social factor that would influence a consumer's buying decision would be the hobbies and interests they have.
True
T/F After receiving a phone call from a debt collector, they must send you a written notice within 5 days.
True
T/F An asset management account combines several financial services for a single fee.
True
T/F College students and young adults are very likely to misuse credit.
True
T/F Consumer credit is based on trust in people's ability and willingness to pay bills when due.
True
T/F Credit is an arrangement to receive cash, goods, or services now and pay for them in the future.
True
T/F Debt payments-to-income ratio is calculated by dividing monthly debt payments (not including house payments) by net monthly income.
True
T/F Experts suggest that you spend no more than 20 percent of your net income on credit purchases.
True
T/F For some debtors, bankruptcy has become an acceptable tool of credit management.
True
T/F If someone has stolen your identity, the Federal Trade Commission recommends that you contact the fraud departments of each of the three major credit bureaus.
True
T/F If you default on your car loan, no advance notice is required before repossession.
True
T/F If you have declared personal bankruptcy, that fact may be reported to credit bureaus for 10 years.
True
T/F If you want to reduce your borrowing costs, you may need to accept conditions that lower the risk for your lender.
True
T/F If you want to take advantage of the interest-free period on your credit card, you must pay your bill in full every month.
True
T/F In addition to the Consumer Credit Counseling Service, universities, credit unions, military bases, and state and federal housing authorities sometimes provide credit counseling services.
True
T/F One way to gather information about a product is to use an independent testing organization like Consumers Union.
True
T/F Parents or family members are often the source of the least expensive loans.
True
T/F Several federal government agencies publish materials to assist consumers with buying decisions and financial planning.
True
T/F The Consumer Credit Counseling Service counseling is usually free.
True
T/F The Federal Deposit Insurance Corporation provides deposit insurance for your money in a bank.
True
T/F The best way to maintain your credit rating is repay your debts on time.
True
T/F The credit bureau cannot charge you a disclosure fee if you ask to see your file within 60 days of being notified of a denial based on a credit report.
True
T/F The fairest method of calculating interest is the average daily balance method.
True
T/F The finance charge is the total dollar amount you pay to use credit.
True
T/F The first phase in the buying process involves information gathering.
True
T/F The major criticism of service contracts is high costs and a low chance of need.
True
T/F The money market fund offered by investment companies is a relatively liquid financial service.
True
T/F The process of resolving consumer complaints with the use of a third party who suggests a solution through discussion and negotiation is mediation.
True
T/F Unit pricing uses a standard unit of measurement to compare prices of packages of different sizes.
True
T/F When interest rates are rising, a person would be best served by short-term savings instruments.
True
T/F Your debt-to-equity ratio is calculated by dividing total liabilities by net worth.
True
