Question 1

Which of the following is true of the Truth in Lending Act?

Accepted Answer

A) It is part of the Consumer Leasing Act. 
B) It protects natural-person debtors. 
C) It establishes maximum interest rates. 
D) It regulates open-end credits. 
E) It does not regulate credit-card transactions. 
A) It is part of the Consumer Leasing Act. 
B) It protects natural-person debtors. 
C) It establishes maximum interest rates. 
D) It regulates open-end credits. 
E) It does not regulate credit-card transactions. B

Question 2

The Fair Credit and Charge Card Disclosure Act requires that credit card issuers disclose the annual percentage rate,annual fees,grace period,and other information on credit card applications.

Accepted Answer

A) True 
 B)False  True

Question 3

The _____ is the total of all money paid for credit.

Accepted Answer

A) prime rate 
B) floor limit 
C) finance charge 
D) balloon payment 
E) floating rate 
A) prime rate 
B) floor limit 
C) finance charge 
D) balloon payment 
E) floating rate C

Question 4

Under the Fair Credit Reporting Act,an applicant denied credit has the right to be told the name and address of the credit bureau that prepared the report on which the denial was based.

Accepted Answer

A) True 
 B)False

Question 5

Under the _____,a creditor may not ask a credit applicant to state sex,race,national origin,or religion.

Accepted Answer

A) Fair Credit and Charge Card Disclosure Act 
B) Equal Credit Opportunity Act 
C) Home Mortgage Disclosure Act 
D) Community Reinvestment Act 
E) Fair Credit Reporting Act 
A) Fair Credit and Charge Card Disclosure Act 
B) Equal Credit Opportunity Act 
C) Home Mortgage Disclosure Act 
D) Community Reinvestment Act 
E) Fair Credit Reporting Act

Question 6

Which of the following provisions regarding the Fair Credit Billing Act is accurate?

Accepted Answer

A) During the time the creditor is replying,the customer is required to pay back the questioned item. 
B) The act allows a customer 90 days to notify the creditor of the nature of the error and the amount. 
C) In case of an error,the creditor has 120 days to respond and 150 days to correct the customer's account. 
D) The act applies only to open-end credit and not to installment sales. 
E) The Congress enacted this act as an amendment to the Fair Credit Reporting Act. 
A) During the time the creditor is replying,the customer is required to pay back the questioned item. 
B) The act allows a customer 90 days to notify the creditor of the nature of the error and the amount. 
C) In case of an error,the creditor has 120 days to respond and 150 days to correct the customer's account. 
D) The act applies only to open-end credit and not to installment sales. 
E) The Congress enacted this act as an amendment to the Fair Credit Reporting Act.

Question 7

_____ is the practice by a financial institution of refusing to grant home loans or home-improvement loans to people living in low-income neighborhoods.

Accepted Answer

A) Blockbusting 
B) Inclusionary zoning 
C) Cream skimming 
D) Redlining 
E) Constructive eviction 
A) Blockbusting 
B) Inclusionary zoning 
C) Cream skimming 
D) Redlining 
E) Constructive eviction

Question 8

The penalties for violating usury laws are the same in all the states of the U.S.

Accepted Answer

A) True 
 B)False

Question 9

Under the Fair Debt Collection Practices,collectors are no longer allowed to file suits in remote places in order to obtain default judgments.

Accepted Answer

A) True 
 B)False

Question 10

_____ is an agreement by an employee that a creditor may take future wages as security for a loan or to pay an existing debt.

Accepted Answer

A) Garnishment 
B) Wage assignment 
C) Confession of judgment 
D) Sequestration 
E) Interception 
A) Garnishment 
B) Wage assignment 
C) Confession of judgment 
D) Sequestration 
E) Interception

Question 11

A wage assignment is an agreement by an employee that a creditor may take future wages as security for a loan or to pay an existing debt.

Accepted Answer

A) True 
 B)False

Question 12

Entry of a confession of judgment entitles the creditor to attach the debtor's assets to satisfy the debt.

Accepted Answer

A) True 
 B)False

Question 13

The _____ amended the Truth in Lending Act by requiring credit card issuers to disclose in a uniform manner the annual percentage rate,annual fees,grace period,and other information on credit card applications.

Accepted Answer

A) Fair Credit Reporting Act 
B) Consumer Leasing Act 
C) Truth in Lending Act 
D) Fair Credit and Charge Card Disclosure Act 
E) Credit Card Accountability,Responsibility,and Disclosure Act 
A) Fair Credit Reporting Act 
B) Consumer Leasing Act 
C) Truth in Lending Act 
D) Fair Credit and Charge Card Disclosure Act 
E) Credit Card Accountability,Responsibility,and Disclosure Act

Question 14

Outline some of the provisions of the Truth in Lending Act TILA)?

Accepted Answer

The TILA only applies to consumer credit

Question 15

In 1970,Congress enacted the _____ to give consumers access to their credit files in order to correct errors.

Accepted Answer

A) Fair Credit Reporting Act 
B) Fair Credit Billing Act 
C) Equal Credit Opportunity Act 
D) Uniform Consumer Credit Act 
E) Fair Credit and Charge Card Disclosure Act 
A) Fair Credit Reporting Act 
B) Fair Credit Billing Act 
C) Equal Credit Opportunity Act 
D) Uniform Consumer Credit Act 
E) Fair Credit and Charge Card Disclosure Act

Question 16

The federal wage-garnishment law states that an employee fired for having one debt garnished may sue the employer for damages.

Accepted Answer

A) True 
 B)False

Question 17

Under the Equal Credit Opportunity Act:

Accepted Answer

A) alimony received and child support payments are not considered sources of income. 
B) questions concerning plans for children should be asked before sanctioning credit. 
C) if the credit is refused,the creditor,on demand,must disclose the reasons for rejection. 
D) the creditor must ask all credit applicants for a statement of marital status. 
E) a spouse is required to cosign irrespective of the other spouse's creditworthiness. 
A) alimony received and child support payments are not considered sources of income. 
B) questions concerning plans for children should be asked before sanctioning credit. 
C) if the credit is refused,the creditor,on demand,must disclose the reasons for rejection. 
D) the creditor must ask all credit applicants for a statement of marital status. 
E) a spouse is required to cosign irrespective of the other spouse's creditworthiness.

Question 18

Which of the following is true of the Fair Credit Reporting Act?

Accepted Answer

A) Adverse information from the person's credit report must be removed after three years. 
B) A person is entitled to a free copy of his or her credit report from each of the three main credit bureaus every six months. 
C) An applicant denied credit has the right to be told the name and address of the credit bureau that prepared the report on which the denial was based. 
D) The agency must furnish the consumer the information free if requested within a year of the rejection. 
E) Any person who obtains information from a credit agency under false pretenses is subject only to civil penalties. 
A) Adverse information from the person's credit report must be removed after three years. 
B) A person is entitled to a free copy of his or her credit report from each of the three main credit bureaus every six months. 
C) An applicant denied credit has the right to be told the name and address of the credit bureau that prepared the report on which the denial was based. 
D) The agency must furnish the consumer the information free if requested within a year of the rejection. 
E) Any person who obtains information from a credit agency under false pretenses is subject only to civil penalties.

Question 19

The Home Mortgage Disclosure Act,1975,and the Community Reinvestment Act,1977,prohibit:

Accepted Answer

A) constructive eviction. 
B) blockbusting. 
C) inclusionary zoning. 
D) cream skimming. 
E) redlining. 
A) constructive eviction. 
B) blockbusting. 
C) inclusionary zoning. 
D) cream skimming. 
E) redlining.

Question 20

The Fair Credit Billing Act applies to unsatisfactory goods or services purchased by credit card.

Accepted Answer

A) True 
 B)False

Exam 10: Consumer Credit Transactions

Which of the following is true of the Truth in Lending Act?

The Fair Credit and Charge Card Disclosure Act requires that credit card issuers disclose the annual percentage rate,annual fees,grace period,and other information on credit card applications.

The _____ is the total of all money paid for credit.

Under the Fair Credit Reporting Act,an applicant denied credit has the right to be told the name and address of the credit bureau that prepared the report on which the denial was based.

Under the _____,a creditor may not ask a credit applicant to state sex,race,national origin,or religion.

Which of the following provisions regarding the Fair Credit Billing Act is accurate?

_____ is the practice by a financial institution of refusing to grant home loans or home-improvement loans to people living in low-income neighborhoods.

The penalties for violating usury laws are the same in all the states of the U.S.

Under the Fair Debt Collection Practices,collectors are no longer allowed to file suits in remote places in order to obtain default judgments.

_____ is an agreement by an employee that a creditor may take future wages as security for a loan or to pay an existing debt.

A wage assignment is an agreement by an employee that a creditor may take future wages as security for a loan or to pay an existing debt.

Entry of a confession of judgment entitles the creditor to attach the debtor's assets to satisfy the debt.

The _____ amended the Truth in Lending Act by requiring credit card issuers to disclose in a uniform manner the annual percentage rate,annual fees,grace period,and other information on credit card applications.

Outline some of the provisions of the Truth in Lending Act TILA)?

In 1970,Congress enacted the _____ to give consumers access to their credit files in order to correct errors.

The federal wage-garnishment law states that an employee fired for having one debt garnished may sue the employer for damages.

Under the Equal Credit Opportunity Act:

Which of the following is true of the Fair Credit Reporting Act?

The Home Mortgage Disclosure Act,1975,and the Community Reinvestment Act,1977,prohibit:

The Fair Credit Billing Act applies to unsatisfactory goods or services purchased by credit card.

Introduction to Law and Legal Systems

Corporate Social Responsibility and Business Ethics

Courts and the Legal Process

Constitutional Law and Uscommerce

Administrative Law

Criminal Law

Introduction to Tort Law

Contracts

Products Liability

Secured Transactions and Suretyship

Mortgages and Nonconsensual Liens

Bankruptcy

Relationships Between Principal and Agent

Liability of Principal and Agent; Termination of Agency

Employment Law

Labor-Management Relations

Partnerships: General Characteristics and Formation

Partnership Operation and Termination

Hybrid Business Forms

Corporation: General Characteristics and Formation

Legal Aspects of Corporate Finance

Corporate Powers and Management

Securities Regulation

Corporate Expansion,state and Federal Regulation of Foreign Corporations,and Corporate Dissolution

Antitrust Law

Unfair Trade Practices and the Federal Trade Commission

The Nature and Regulation of Real Estate and the Environment

Introduction to Property: Personal Property and Fixtures

Intellectual Property

The Transfer of Real Estate by Sale

Landlord and Tenant Law

International Law

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