Chapter 07 Test A

Chapter 07 Test A - Chapter 7 Test A 1. A legal claim that...

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Chapter 7 Test A 1. A legal claim that allows credits to liquidate loan collateral is a a. loan. b. note. c. security claim. d. lien. e. none of these 2. Home equity loans are similar to other installment loans except a. interest rates are generally higher. b. the interest paid is generally tax deductible. c. no home equity is required. d. they are typically unsecured debts. e. a and c 3. A note is the a. agreement allowing the installment lender to control the item being purchased. b. promise to repay. c. sales contract. d. purchase agreement. e. insurance agreement. 4. The ____ legally binds the borrower and lender to all items and conditions of an installment contract. a. note b. contract c. security agreement d. sales contract e. bond 5. Your debt safety ratio a. does not include your home mortgage payment. b. is acceptable if it stays below 30%. c. need not be calculated for consumer loans. d. is calculated only for credit card debt. e. is a percentage of your gross income. 6. Besides the finance charge, you should also consider ____ when you shop for a consumer loan. a. loan maturity b. total cost of the loan c. collateral d. repayment penalties e. all of the above 7. Sales finance companies a. lend money to retailers. b. buy installment loans from retailers. c.
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Chapter 07 Test A - Chapter 7 Test A 1. A legal claim that...

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