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Personal Credit & Loans 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!

Page 1

Question 1 1. Margie's credit card bill is due on the 30th of each month. She sent her payment on the 25th, but the company posted the payment on the 5th of the following month and charged her a late fee. This is likely a violation of the:

Question 2 2. Emily missed a few payments on her credit card while she was out of work. Now she has a debt collector calling her, sometimes up to 20 times a day. Which act is the debt collector violating?

Question 3 3. What is the correct definition of interest?

Question 4 4. Sally received a copy of her credit report and noticed an error. The report lists a credit card she has never owned. She wants to dispute this error. What law contains information about how to do this?

Question 5 5. When taking out a loan, you are required to sign a legal document promising to repay it. What is this document called?

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Question 6 6. How do borrowers qualify for an unsecured loan?

Question 7 7. 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 8 8. Mary has never had a credit card, and she has never taken out any loans before. Why might she be denied a loan if she applies for one?

Question 9 9. 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 10 10. Greg wants to file bankruptcy. He wants to keep all of his assets, though his house is in foreclosure. He owes $200,000 on his house and $100,000 in unsecured debt, but has a regular salary of almost $30,000 a year. Which chapter of bankruptcy is Greg likely use?

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Question 11 11. Which is TRUE of payment history and its relation to credit reports?

Question 12 12.

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 13 13. This law prevents discrimination by creditors in all decisions involving credit:

Question 14 14. Neris takes out a loan for $100,000 to buy a house. She makes 25 payments of $4,000 and asks for the title (ownership papers) to be placed into her name. Will Neris receive the title and why?

Question 15 15. Jody decides to file bankruptcy. She's a single mother of two children and has very few assets. She makes a regular salary that's only slightly above the poverty level. Jody will likely use:

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Question 16 16. Sue bought a car with a loan. She stopped paying the loan on the car and the bank took her boat. Why did this happen?

Question 17 17. The Federal Trade Commission is made up of several different bureaus. Which bureau handles credit protection?

Question 18 18. How does credit score affect interest rates?

Question 19 19. What type of loan is made to a borrower to purchase a house?

Question 20 20. Which of the following is true about credit lenders and the maximization of credit?

Personal Credit & Loans 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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