Test your financial IQ by taking this quiz based on information in this issue.
1. If you pledge your home as collateral for a loan, you could lose your home if you can't repay the loan. True or False?
2. For home equity loans and certain other loans secured by your home, federal law gives you up to three business days after signing a loan contract to cancel the deal without penalty.True or False?
3. If your applying for a home loan and you decide to purchase credit-related insurance, such as life insurance, the lender is permitted to condition the approval of your loan on whether you buy the insurance through the same company.True or False?
4. Your financial institutions are required to send you a notice of their privacy policies at least once a year.True or False?
5. You're selling a used car and you find a buyer who offers to pay with a cashier's check. Because there is no risk involved in accepting a cashier's check, it's safe to hand over the car to this person once you have the cashier's check in hand.True or False?
6. Co-signing a bank loan—guaranteeing to pay money back if the other person doesn't—is a low-risk way for you to help a friend or relative with no credit record or a poor credit record qualify for a bank loan. Statistics show that co-signers rarely are called upon to make payments on a loan. True or False?
