Debt Management Basics: Chapter 3 quiz

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If you think you’ve mastered the material in this chapter, take our quiz. After you click the ”submit” button, the answers will appear below.

  1. When canceling a credit card, it’s important not to:

    Cancel credit cards before you apply for a mortgage or car loan.
    Cancel a card with a balance.
    Ignore balance fees stipulated in your credit card agreement.
    All of the above.
  2. True or false: The rule of 78s is a simple interest rate calculation.

  3. Which of the following statements is true?

    The loan payments on a 401(k) loan are deducted from paychecks before taxes.
    The amount borrrowed using a 401(k) can be much as 75 percent of your vested balance.
    If the loan is not repaid, the outstanding loan balance is treated like an early withdrawal.