Credit & Debt Review (Bus Law)

What does APR stand for?

• Almost Perfect Rate

• Annual Payment Required

• Annual Percentage Rate

• Acquired Perentage Rate

A lender must disclose upfront the APR and total cost of the loan under the Truth in Lending Act

• False

• True

You can be turned down for credit based upon your gender, race, and income.

• True

• False

Debt collectors may threaten you with harm or jail time in order collect payment.

• False

• True

You have the right to know what personal information about you is being held by the credit bureaus.

• True

• False

How can you avoid paying interest on a credit card?

• Make the full payment 10 days after the due date.

• There is no way to avoid the interest charge.

• Make the minimum payment each month.

• Pay the balance in full on time each month.

If your credit card is lost or stolen and purchases are made; you can be held responsible for ___ if it is reported in a timely manner.

• the first $100

• all the transactions

• the first $50

• none of the transactions

The party lending money to another is known as a

• debtor.

• creditor.

• good Samaritan.

• collection agency

If you fail to make a payment on a loan, it is said that you have ___ on the loan.

• satisfied

• bounced

• collateral

• defaulted

The party taking a loan or purchasing on credit is known as the ___.

• creditor

• landlord

• debtor

• tennant