Test bank NHTM- CHAP 18

The dominant lender in the United States to households is the finance company with commercial banks ranked second as consumer lenders.

• True

• False

Nonresidential consumer loans include credit to finance the purchase of home appliances.

• T

• F

Credit cards offer convenience to customers plus a revolving line of credit.

• T

• F

Consumer loans appear to have virtually no sensitivity to the business cycle, staying relatively level through both recessions and expansions.

• T

• F

Households tend to be interest-inelastic borrowers.

• T

• F

Lenders in the consumer loan field prefer to measure a borrowing customer's income by the amount of take-home pay.

• T

• F

The "right of offset" allows a bank to sell a customer's property to the highest bidder to repay a customer's loan if the loan is in default.

• T

• F

Credit-scoring systems tend to be valid over long periods of time (usually several years) and need not be periodically retested.

• T

• F

The Truth-in-Lending Act of 1968 gave consumers access to the information from their credit files kept at local and regional credit bureaus.

• T

• F

Small business owners with gross annual revenues of $1 million or less who apply for credit have the right to receive a written notice if their loan request is turned down by a bank.

• T

• F