Law Chapter 25 Test

1.

1 point

some property of value used to secure credit

dividend

collateral

repossess

interest

2.

1 point

What does APR stand for?

Average Price Rate

Average Percent of Rations

Annual Percentage Rate

Annual Price Ratification

3.

1 point

Where do you keep records of transactions for your checking account?

on the internet

notebook

cookie jar

check register

4.

1 point

What is the common form of a finance charge that equals a percent of the total amount owed?

investment

introductory fees

dividend

interest

5.

1 point

Interest rates that change depending on the economy

balloon payments

fixed rates

introductory rates

variable interest rates

6.

1 point

Which has typically higher interest rates: credit cards or bank loans?

credit cards

they are usually similar, so neither

bank loans

7.

1 point

People or institutions that lend money

creditor

financial planner

debtor

stock brocker

8.

1 point

Ordering the bank of a debtor to pay a creditor out of the debtor’s account or seizing a debtor’s property to be sold to satisfy the debt

attachment

garnishment

detachment

acceleration

9.

1 point

How much lost money are your responsible for if you loose your debt card and you report it before 60 days?

$50

$500

unlimited

10.

1 point

People or businesses who borrow money or buy on credit to delay paying

solicitor

registrar

debtor

creditor

11.

1 point

Borrowing money or buying something now in exchange to a promise to pay in the future

investment

mutual fund

credit

certificate of deposit

12.

1 point

When a borrower fails to make the required payments on a loan or line of credit

bounce

default

deferment

forebarance

13.

1 point

How much lost money are your responsible for if you loose your debt card and you report it before 2 days?

$50

unlimited

$500

14.

1 point

What doest ATM stand for?

Allocated Transfer Monitor

Automatic Transitional Monetary

Automated Transfer of Money

Automatic Teller Machine

15.

1 point

Type of credit where the borrower puts up some property of value that the creditor can seize in the case of default

secure

unsecure

investment

mutual fund

16.

1 point

Which of the following is NOT one fo the types of documentation will lenders look at to decide whether or not to lend money to someone?

birth certificate

Credit report/score

Pay stubs

Bank statements

17.

1 point

When you deposit money into a savings account at a bank, what does that bank do with the money?

put in in a drawer with your name and account number

keep it in a safe

pay their employees with it

invest the money and lend it to others

18.

1 point

How do you calculate basic APR?

multifly the monthly interst by the term of the loan

average monthly interest rate X 12 months

add up all interest and fees and devide by 3.5

divide the interest rate of each month in half

19.

1 point

Interest rates that are very low for a short period of time (usually at the beginning of the contract), but then increase

default fee

deferment fees

introductory rates

variable interest rates

20.

1 point

Withholding part of a debtor’s wages in order to collect delinquent payments

forbarance

garnishment

delinquency

deferment

21.

1 point

Type of credit where credit is extended in exchange for a promise to repay in the future

secured

unsecured

dividend

mutual fund