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What's the Alternative? Quiz

Total questions: 25

Worksheet time: 8mins

Name
Class
Date
1.

What was the original name of the Department of Financial Institutions?

a)

The Department of Finance

b)

The Department of Banking

c)

The Department of Institutions

d)

The Department of Financial Institutions

2.

When was the Department of Financial Institutions created?

a)

1914

b)

1983

c)

1913

d)

1925

3.

What alternative lending product uses a car title as collateral?

a)

Payday-Deferred Presentment

b)

Title Pledge

c)

Flexible Credit

d)

Industrial Loan and Thrift

4.

What alternative lending product has an interest rate of two percent (2%)?

a)

Industrial Loan and Thrift

b)

Payday-Deferred Presentment

c)

Flexible Credit

d)

Title Pledge

5.

Which alternative lending product has a maximum allowable loan limit of $500?

a)

Flexible Credit

b)

Industrial Loan and Thrift

c)

Payday-Deferred Presentment

d)

Title Pledge

6.

How many regulatory divisions does the Department of Financial Institutions have?

a)
b)
c)
d)
7.

What is the maximum allowable loan limit on a title pledge transaction?

a)
b)
c)
d)
8.

Which alternative lending product has a maximum allowable customary fee of seven tenths (7/10) of one percent?

a)

Flexible Credit

b)

Payday-Deferred Presentment

c)

Title Pledge

d)

Check Cashing

9.

What is the maximum fee of the face value of the check on a Payday-Deferred Presentment loan?

a)
b)
c)
d)
10.

What is the maximum length of a Title Pledge Agreement?

a)

Six (6) months

b)

Two (2) weeks

c)

30 days

d)

One (1) year

11.

In what year was the National Bank Act passed into law?

a)

1861

b)

1862

c)

1863

d)

1864

12.

Upon the the third renewal of a title pledge agreement, how much must the borrower start paying towards principal reduction of the debt?

a)
b)
c)
d)
13.

At the statutory maximum for a title pledge agreement, what is the combined interest rate and customary fee on a $2500 loan?

a)

$550.00

b)

$450.00

c)

$500.00

d)

$50.00

14.

What is the statutory minimum a borrower must pay towards principal reduction of a flexible credit loan within a calendar month?

a)
b)
c)
d)
15.

How many outstanding checks, or deferred presentment/payday loans can a borrower have, as long as the aggregate face value of the checks does not exceed $500?

a)
b)
c)
d)
16.

What is the maximum principal loan amount on a flexible credit account?

a)
b)
c)
d)
17.

What is the statutory maximum loan amount for an Industrial Loan and Thrift "B" loan?

a)
b)
c)
d)
18.

What is the statutory maximum acquisition charge that can be assessed to a "B" loan Industrial Loan and Thrift Transaction?

a)
b)
c)
d)
19.

Most alternative lending products do not do which of the following?

a)

Credit report review

b)

Loan underwriting review

c)

Debt-to-income ratio analysis

d)

Employment verification

20.

What credit card brought about the more wide-spread use of credit cards?

a)
b)
c)
d)
21.

What is the four-letter acronym for the credit scoring system that is used in determining loan eligibility?

a)

FIDO

b)

FICO

c)

LOAN

d)

BANK

22.

What legislation set guidelines for companies providing credit information on their borrowers/customers?

a)

Fair Credit Billing Act of 1974

b)

Equal Credit Opportunity Act of 1974

c)

Fair Credit Reporting Act of 1970

d)

Fair Debt Collection Practices Act of 1977

23.

If a credit applicant is considered an exceptional, or low risk borrower, what range is their FICO score?

a)

740-799

b)

800-850

c)

670-739

d)

300-579

24.

In what year was the current Department of Financial Institutions Commissioner, Greg Gonzales, appointed to his role?

a)

1913

b)

1983

c)

2004

d)

2005

25.

True or False? The lower your FICO credit score, the lower the loan interest rate.

a)
b)