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Loans, Payments & Debts Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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Question 1 1. Sometimes the creditor can legally take the collateral in an attempt to cover the debtor's loan. This is known as:

Question 2 2. Which of the following statements is true?

Question 3 3. Which of the following is an example of an installment purchase with simple terms?

Question 4 4. Anne borrows money from the bank in order to buy a tractor for her farm. In exchange, she gives the bank a legal claim to the tractor. This legal claim is called a:

Question 5 5. When a bank takes back a home from a borrower for non-payment, it is referred to as _____.

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Question 6 6. Rick loses his job and is unable to make house payments for several months. His bank moves to seize the house by _____.

Question 7 7. What is the monthly payment for a 10 year loan paid monthly for 10 years where the amount of the loan is $80,000 and the annual percentage rate is 3.5%? Please round your answer to the nearest tens place.

Question 8 8. Jonathan bought a car and offered it as collateral to the bank for a loan. Choose the statement that is TRUE after Jonathan's loan has been disbursed.

Question 9 9. Purchasing an item now and agreeing to pay for it in a series of future payments is known as a/an _____.

Question 10 10.

For this problem, what number would you plug into L?

A car costs $30,000. The installment purchase has terms of monthly payments for 7 years with an annual interest of 4 percent.

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Question 11 11.

Suzie's Superstores, Inc. wants to file bankruptcy. They are insolvent and want to re-organize their debt, but stay in business.

Which type of Bankruptcy proceeding will Suzie's Superstores most likely to use?

Question 12 12. Adriana bought a bicycle at $300 on a deferred payment plan with an annual interest rate of 20 percent and 12 monthly payments. Calculate her repayment for the first month.

Question 13 13. Which of the following is true concerning mortgages?

Question 14 14. Under which of these plans would you end up paying the most over 12 months?

Question 15 15. A promissory note for a loan amount of $45,000 has monthly payments of $412.37 for 10 years. What is the total amount paid at the end when the loan is paid off?

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Question 16 16. How many years is this loan calculation for if the number of payments per year is 12?

Question 17 17. Kevin wants to file bankruptcy. He's the married father of three college-aged children. Kevin's family owns several assets including three cars and two houses. Between Kevin and his wife, the family makes an income of approximately $300,000. Their overall debt is over $1 million, with more than half of that in unsecured debt like credit cards and medical bills. Kevin will likely use _____ while filing for bankruptcy.

Question 18 18. Jack borrows money from his friend Jill in order to buy a laptop. Jill is a:

Question 19 19. If the annual percentage rate is 9.1% on a particular loan with quarterly payments (4 payments in a year) what does J equal in this formula?

Question 20 20. Which is a disadvantage of a loan?

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Question 21 21. Loans often require the repayment of

Question 22 22.

For this problem, what number would you plug into n?

A car costs $30,000. The installment purchase has terms of monthly payments for 7 years with an annual interest of 4 percent.

Question 23 23. A car costs $24,000. The installment purchase has terms of annual payments for 5 years with an interest of 3 percent. What is the yearly payment?

Question 24 24. Which of these are common types of loans?

Question 25 25. When the security agreement is complete and valid, the collateral becomes a part of the agreement. This is known as:

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Question 26 26.

Calculate the monthly payments for a promissory note with these terms.

Amount: $40,000

Payment terms: Monthly

Annual interest rate: 3%

Loan due date: 10 years

Question 27 27. In this formula, what does the r stand for?

Question 28 28. Which of the following is NOT true about a mortgage?

Question 29 29. Maria wants to file bankruptcy for her business, Maria's Manicures. She's closing the business completely and wants to completely liquidate the assets. She doesn't plan to re-open. Maria will use _____ bankruptcy.

Question 30 30. For a promissory note with monthly payments and an annual interest rate of 6 percent, what is the monthly interest rate that you need to use in this formula?

Loans, Payments & Debts Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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