A disadvantage of obtaining a Canada Student Loan from the federal government is A) the interest rate is higher than commercial rates. B) you may have to begin repayment before you finish school. C) you have to complete two separate applications (federal and provincial) D) it is not available to part time students E) it is only available for university studies

A disadvantage of obtaining a Canada Student Loan from the federal government is A) the interest rate is higher than commercial rates. B) you may have to begin repayment before you finish school. C) you have to complete two separate applications (federal and provincial) D) it is not available to part time students E) it is only available for university studies

Personal Finance

13th Edition

ISBN:9781337669214

Author:GARMAN

Publisher:GARMAN

Chapter7: Credit Cards And Consumer Loans

Section: Chapter Questions

Problem 2LTAI

See similar textbooks

Similar questions

Many students attending college in the United States find themselves having to take out loans to attend school while obtaining their education. Do you believe that the special for AGI deduction for students should be made permanent? Also, do you believe that the amount offered as a maximum deduction is too high, too low, or just right? What would be the impact of changing it?
3. Which type of student loan will the government pay your interest while enrolled and even up to 6 months after graduation A. State B. Private C. Subsidized D. Unsubsidized
Which of the following is not a way in which banks lend short-term unsecured loans? a. Through a guaranteed credit line that has a commitment fee for any unused amount for the year b. Through credits cards lines with a certain credit limit c. By sending the amount earned from trust and investment products offered by the bank d. By lending a single date maturity loan to a debtor
PayDay loans are one form of financing that consumers can use when they have insufficent cash to pay bills. Borrowers often can't access other methods of financing, because of a poor credit score (credit card) or lack of homeownership (home equity loans). States often have laws to limit the amount that PayDay lenders can charge for these short-term loans. For example, the state of Alabama has a law that limits the finance charge or interest rate to 17.55% for a two-week loan of $100. In other words, if you borrow $100, you must pay back $117.55 two weeks later. If you can’t pay it back in two weeks, the PayDay lender will let you borrow what you owe ($117.55 ; principal of $100 and interest of $17.55), again at the rate of 17.55% for a two week loan. You can keep doing this- tacking on interest to principal every two weeks- until you have sufficient funds to payback the loan in full. A. What is the APR of the loan? B. What is the EAR of the loan? C. Suppose…
On subsidized Stafford loans, a common source of financial aid for college students, interest does not begin to accrue until repayment begins. Who receives a bigger subsidy, a freshman or a senior? Explain. Found in MBA 640 Finance, Economics and Decision Making. Chapter 3 concept question #5
Commercial (in contrast to consumer) line of credit is an agreement between a customer and a bank that a. is renewed at the end of the contract period in an evergreen facility. b. gives the customer the right to borrow up to a predetermined amount. c. is usually for one year or longer. d. may not obligate the bank to honour the customer’s request for a loan The APR is a. the average annual percentage cost paid on deposits b. the average rate paid on deposits c. the average rate paid for credit d. the average annual percentage cost paid for credit
1. How would you classify Housing Authority among Fiji's Financial Institutions? A. Investment Company B. Retail Bank. C. Brokerage Firm D. Mortgage Company 2. Sam's Housing loan from a well-known financial institution was approved three months ago. Last week Sam decided to use parts of the initial proceeds to cover for his child's medical bill abroad. In doing so, Sam has created a situation known as: A. Credit Rationing B. Adverse Selection C. Moral Hazard D. Restrictive Covenant 3. When individuals withholds personal information from their banker, it is known as: A. Risk Averse B. Moral Hazard C. Restrictive Covenant D. Adverse Selection 4. Which of these is a form of monetary control? A. Raising the overnight policy rate B. All the answers are corrrect C. Raising the travel allowance from $500 to $1000 for all locals travelling abroad D. Open Market Operation 5. A Venture Capitalist: A. Raises equity capital to invest in start-up firms B. Raises equity capital to restucture old…
A payday loan is a short-term loan that is repaid on the next payday, often by giving the lender electronic access to a personal checking account. Some states have statutes that regulate the fees that may be charged for payday loans. Suppose that, in a certain state, finance charges on a payday loan may not exceed 18.8% of the amount advanced. Find the annual interest rate if $300 is borrowed for 8 days at the maximum allowable charge. The annual interest rate is %
Many tax preparation firms offer their clients a refund anticipation loan (RAL). For a fee, the firm will give a client his refund when the return is filed. The loan is repaid when the Internal Revenue Service sends the refund directly to the firm. Thus, the RAL fee is equivalent to the interest charge for a loan. The schedule in the table on the right is from a major RAL lender. Use this schedule to find the annual rate of interest for a $579 RAL, which is paid back in 26 days. RAL Amount RAL Fee $0 - $500 $29.00 $501 - $1,000 $39.00 $1,000 - $1,500 $49.00 $1,501 - $2,000 $69.00 $2,001 - $5,000 $89.00 (Assume a 360-day year.) What is the annual rate of interest for this loan? (Round to three decimal places.)
What does Ginnie Mae do? Select all that apply. A.Guarantees VA loans that allow no or 0% down payment so these loans can be sold on the secondary market.. B.Enforces the Truth in Lending Act C.Passed the Dodd Frank Wall Street Reform Act and Consumer Protection Act of 2010 D.Prevents discrimination and monitors lenders for discrimination against applicants in lending. E.Guarantees FHA loans that allow a low 3.5% down payment so that they can be sold on the secondary market.
Which of the following is FALSE The APR is the annual rate that is required by law to be disclosed on loan documents. The EAR allows for comparison between savings accounts that have different compounding frequencies US treasury bills are considered pure discount loans the cash flows of preferred stock are considered an annuity. car loans are considered amortized loans because each payment includes interest and some principal
Which of the following costs is not a qualified education expense for the American Opportunity tax credit? tuition room and board course-related books lab supplies required by the course