Introduction to Business

Chapter 27: Credit and the Law

Chapter Practice Review Quizzes

1
Which U.S. agency enforces credit laws?
A)Internal Revenue Service
B)Federal Trade Commission
C)Federal Communications Commission
D)Federal Bureau of Investigations
2
Which is a law that restricts the amount of interest that can be charged for credit?
A)credit fraud law
B)equal credit protection law
C)usury law
D)credit protection law
3
Which is NOT a true statement about the Consumer Credit Protection Act?
A)It is also know as the Truth in Lending Act.
B)It requires creditors to inform consumers about costs and terms of credit.
C)It helps make comparing credit costs more difficult.
D)It states that advertising about credit cards reflect the true nature and cost of credit.
4
Which federal law states that credit applications can be judged only on the basis of financial responsibility?
A)The Equal Credit Opportunity Act
B)The Fair Debt Collection Practices Act
C)The Fair Reporting Act
D)The Fair Credit Billing Act
5
Which is NOT a reason a person can be denied credit?
A)low income
B)large debts
C)poor payment record
D)receiving welfare
6
Which term refers to a record of an individual's past borrowing and repayments?
A)bankruptcy
B)consumer debt
C)credit history
D)debt report
7
Which is NOT a credit bureau from which you can request a credit report?
A)American Express
B)Experian
C)Equifax
D)TransUnion
8
Which is the federal law that requires creditors to correct billing mistakes?
A)The Equal Credit Opportunity Act
B)The Fair Debt Collection Act
C)The Fair Reporting Act
D)The Fair Credit Billing Act
9
Which is the federal law that regulates collection agencies?
A)The Equal Credit Opportunity Act
B)The Fair Debt Collection Practices Act
C)The Fair Reporting Act
D)Fair Credit Billing Act
10
Which is NOT a good way for consumers to protect their identities from identity theft?
A)Shred personal papers that contain your account numbers.
B)Review monthly bank and credit card statements.
C)Carry your checkbook, credit, and ATM cards with you at all times.
D)Use a secure browser when ordering online.
11
Which is something you should NOT do when you discover identity theft?
A)Contact the credit bureaus.
B)Contact the creditors.
C)File a police report.
D)Turn over your credit cards to the store clerk.
12
Who is a person who helps consumers work out their credit problems?
A)a collection agent
B)a credit counselor
C)an identity thief
D)a usury lawyer
13
What is a loan called that combines consumer's debt into one loan with lower payments?
A)bankruptcy
B)variable rate loans
C)consolidation loans
D)secured loans
14
What is the legal process which relieves a borrower of debt?
A)bankruptcy
B)credit consolidation
C)credit reporting
D)credit billing
15
Which is NOT an effect of bankruptcy?
A)harder to obtain a loan
B)higher interest rate charges
C)poor credit report
D)increased credit limit
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