Fp 101 Final Exam

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  • Topic: Debt, Pension, Interest
  • Pages : 7 (1420 words )
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  • Published : November 13, 2011
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Final Assignment FP 101

1) When does repayment of a PLUS loan begin? | A.  6 months after disbursement| | B.  6 months after graduation|
| C.  9 months after graduation|
| D.  2 months after disbursement|
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2) Which of the following is true about credit reports? | A.  A credit report does not list requests for your credit report.| | B.  You always have to pay for a credit report|
| C.  There is only one credit bureau that provides credit reports| | D.  You can get a free credit report by contacting a credit bureau.| | |
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3) Which of the following is true about student loans? | A.  All student loans are subsidized.| | B.  All student loans are issued by the federal government.| | C.  Rates on student loans tend to be more favorable than other types of consumer credit.| | D.  You do not need to be a US citizen to obtain a loan from a federal program.| | |

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4) Which of the following is not a good reason to refinance a home mortgage? | A.  A reduction in the term of the mortgage| | B.  Access to the equity in the home|
| C.  A reduction in the interest rate of at least 1 perccent| | D.  A significant increase in the monthly payment.|
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5) Which of the following is not true about student loans? | A.  There are two types of student loans: subsidized or unsubsidized.| | B.  You may qualify for a loan even if you are in default on another student loan.| | C.  It is possible to defer payment on some student loans until after you graduate.| | D.  They often carry lower interest rates than other types of loans or credit cards.| | |

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6) Which of the following is considered a sign of credit card debt trouble? | A.  You are at or over the limit on all of your credit card accounts| | B.  Don’t use your credit cards to pay for regular expenditures| | C.  You avoid credit cards with high interest rates|

| D.  You pay your credit card balances in full every month| | |
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7) Which of the following is not a good option if you recognize signs of credit trouble in yourself? | A.  You should think about ways to cut expenses| | B.  You should use your savings to pay your bills.|

| C.  You should get advice from a legitimate consumer counseling organization| | D.  You should think about steps to reduce your debt| | |
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8) Which type of mortgage loan features rates that change periodically with market conditions? | A.  Growing equity mortgage| | B.  Reverse equity mortgage|
| C.  ARM|
| D.  Conventional mortgage|
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9) Which of the following statements is true of adjustable-rate mortgages? | A.  The interest rate changes on ARMs are limited per year and per lifetime.| | B.  There is no limit as the amount of payment change on an ARM.| | C.  They cannot be converted to fixed-rate loans.|

| D.  They generally carry higher initial interest rates than conventional mortgages.| | |
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10) Which of the following is considered an advantage of home ownership? | A.  Profits on real estate are guaranteed.| | B.  Mortgage payments are always lower than rent payments.| | C.  You are responsible for all repairs and maintenance.| | D.  Interest paid on the mortgage of your home is tax deductible.|

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11) Who is the person designated to carry out the provisions of a will? | A.  the trustee| | B.  the beneficiary|
| C.  the executor or executrix|
| D.  the guardian|
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12) Which of the following best describes the role of a real estate broker? | A.  dealer, who purchases goods for resale to consumers| | B.  lessor, who owns the asset and offers it for lease| | C.  principal, who has given responsibility to another| | D.  agent, who is acting on behalf of another person| | |

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13) Which of the following health plans limits your choice of doctors to those under contract with the plan? | A.  Indemnity plan| | B.  HMO plan|...
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