Question 1

_____ 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

Question 2

_____ 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

Question 3

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 4

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 5

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.

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

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

Question 8

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.

Question 9

The Truth in Lending Act protects natural-person debtors and business organization debtors.

Accepted Answer

A) True 
 B)False

Question 10

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.

Question 11

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

Question 12

_____ is a legal process by which a creditor can obtain a court order directing the debtor's employer or any party who owes money to the debtor to pay directly to the creditor a certain portion of the employee's wages until the debt is paid.

Accepted Answer

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

Exam 32: Consumer Credit Transactions

The Truth in Lending Act protects natural-person debtors and business organization debtors.

Correct Answer
verified

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

Correct Answer
verified

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.

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

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.

Correct Answer
verified

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

Correct Answer
verified

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.

Correct Answer
verified

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.

Correct Answer
verified

_____ is a legal process by which a creditor can obtain a court order directing the debtor's employer or any party who owes money to the debtor to pay directly to the creditor a certain portion of the employee's wages until the debt is paid.

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

Exam 32: Consumer Credit Transactions

The Truth in Lending Act protects natural-person debtors and business organization debtors.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

_____ is a legal process by which a creditor can obtain a court order directing the debtor's employer or any party who owes money to the debtor to pay directly to the creditor a certain portion of the employee's wages until the debt is paid.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
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