Managing Your Personal Finances 7th Edition by Joan S. Ryan – Test Bank

Managing Your Personal Finances 7th Edition by Joan S. Ryan – Test Bank

Chapter 10

1. Credit problems usually happen quite suddenly.
a. True
b. False
ANSWER: False

2. It is vital that you follow the 20/10 Rule when you take out a mortgage loan.
a. True
b. False
ANSWER: False

3. Generally, accounts with the highest interest rates should be your first priority in a credit payment plan.
a. True
b. False
ANSWER: True

4. The majority of funding for credit counseling organizations comes from the federal government.
a. True
b. False
ANSWER: False

5. With a debt management plan, a consumer makes a single monthly payment to a credit counseling organization that distributes funds to creditors.
a. True
b. False
ANSWER: True

6. Debt settlement programs are typically free and can reduce your debt by as much as 90 percent.
a. True
b. False
ANSWER: False

7. To qualify for a debt consolidation loan, you must have some type of collateral that secures the payment of the debt.
a. True
b. False
ANSWER: True

8. Information on credit scams, as well as credit advice, is available on the Federal Trade Commission (FTC) website.
a. True
b. False
ANSWER: True

9. The use of gold and platinum credit cards almost always improves your credit rating, as it indicates that you have a high level of creditworthiness.
a. True
b. False
ANSWER: False

10. In bankruptcy, most of a debtor’s assets will probably be used to repay unsecured debt.
a. True
b. False
ANSWER: True