Chapter 14 - CHAPTER 14FINANCING OF SALES AND LEASES:...

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CHAPTER 14—FINANCING OF SALES AND LEASES: CREDIT AND DIS- CLOSURE REQUIREMENTS TRUE/FALSE 1. Usury is charging an interest rate higher than the maximum permitted by law. ANS: T NAT: AACSB: Analytic TOP: usury 2. Some states treat a usurious contract as void. ANS: T NAT: AACSB: Analytic TOP: usury 3. The Equal Credit Opportunity Act was passed to ensure equal credit opportunity regardless of past credit history. ANS: F NAT: AACSB: Analytic TOP: ECOA 4. A negative credit decision cannot be based on an applicant's plans for having children. ANS: T NAT: AACSB: Analytic TOP: ECOA 5. The Truth-in-Lending Act applies to all credit transactions. ANS: F NAT: AACSB: Analytic TOP: TILA 6. A credit line is an example of a closed-end credit arrangement. ANS: F NAT: AACSB: Analytic TOP: open-end credit 7. The solicitation of credit card customers is not regulated by the federal government. ANS: F NAT: AACSB: Analytic TOP: credit cards 8. The TILA applies only to closed-end credit arrangements. ANS: F NAT: AACSB: Analytic TOP: closed-end credit 9. The APR must be disclosed in closed-end credit transactions. ANS: T NAT: AACSB: Analytic TOP: closed-end credit 10. Regulation Z provides the details of compliance with the TILA. ANS: T NAT: AACSB: Analytic TOP: Regulation Z 11. Regulation Z does not cover credit advertising. ANS: T NAT: AACSB: Analytic TOP: Regulation Z 12. The three-day-cooling-off period applies to all credit transactions.
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ANS: F NAT: AACSB: Analytic TOP: three-day rescission 13. Home solicitation sales are subject to Regulation Z. ANS: T NAT: AACSB: Analytic TOP: home sales 14. Home equity loans do not carry a rescission period. ANS: F NAT: AACSB: Analytic TOP: home equity 15. The liability limitation for credit card holders who report a loss or theft is $50. ANS: T NAT: AACSB: Analytic TOP: lost credit card 16. The TILA carries specific class action penalties. ANS: T NAT: AACSB: Analytic TOP: TILA 17. The Fair Credit Billing Act applies only to closed-end transactions. ANS: F NAT: AACSB: Analytic TOP: FCBA 18. A credit card applicant can be solicited without disclosure of the card's terms. ANS: F NAT: AACSB: Analytic TOP: credit cards 19. If a lost credit card is reported immediately, the maximum liability a debtor has is $50. ANS: T NAT: AACSB: Analytic TOP: credit cards 20. A credit card is an example of an open-end credit transaction. ANS: T NAT: AACSB: Analytic TOP: TILA 21. The Fair Credit Reporting Act regulates creditors. ANS: F NAT: AACSB: Analytic TOP: FCRA 22. There are no limitations on credit-agency disclosures, if the debtor is applying for a loan of more than $50,000. ANS: T NAT: AACSB: Analytic TOP: FCRA 23. The FCRA does not give the debtor a right of correction. ANS: F
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This note was uploaded on 11/06/2010 for the course AA GM520 taught by Professor Aa during the Spring '10 term at DeVry Chicago.

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Chapter 14 - CHAPTER 14FINANCING OF SALES AND LEASES:...

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