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WorksheetsChapter 24 -Credit & finance - test practice 2
Total questions: 15
Worksheet time: 8mins
When creditors get a court order that forces the debtor’s employer to withhold part of the debtor’s wages and pay it directly to the creditor, it is called:
Attachment
Garnishment
Repossession
Default judgment
What debts are wiped out through bankruptcy?
credit card debt
child support
taxes
student loans
If someone cannot make their loan payments, the debtor is considered:
In usury status
In loan denial
In fraud
In default
A ruling against a party to a lawsuit who fails to take a required action (not showing up to court on court date; not filing appropriate paperwork) is called a:
Default judgment
Settlement
Garnishment
Repossession
When creditors get a court order that forces the debtor’s employer to withhold part of the debtor’s wages and pay it directly to the creditor, it is called:
Attachment
Default judgment
Repossession
Garnishment
A procedure through which a person places assets (things of value- car, boat, camper, tractor, house, etc.) under the control of a federal court in order to be relieved of debt:
Default Process
Usury Process
Bankruptcy
Credit Denial Process
Which of the following would be the direct result for spending more money than you have in your checking account?
The bank can repossess your assets (car, camper, boat) equal to the amount of how much you owe
All of the purchases made after $0 balance will be considered “credit” and interest will begin building
All of the purchases made after $0 balance will incur a $35 Non-Sufficient Funds Fee for each purchase
The bank will immediately shut down your account and will never let you open an account there in the future
Which of the following is the best reason why someone would need a “cosigner” on a loan:
If you have no credit or poor credit history
All banks require this for first time borrowers
A cosigner simply acts as a witness to the contract
Only needed if you are a minor
For those people who have good credit, the bank sometimes allows them to continue making purchases up to a certain amount even after reaching a $0 balance. This is called:
Fraud protection
Usury protection
Overdraft protection
APR protection
With a lost or stolen debit card, your liability is limited to $ ________.
You could be liable for all of it if reported after 60 days.
You could be liable for up to $500 if reported within 60 days.
You could be liable for nothing more than $50 if reported within 2 days
All of the statements above are true regarding a lost/stolen debit card
In the state of Louisiana, the interest rate limit that credit card companies can charge is 12%. Julie, a resident of Louisiana, was charged 23% for a new Visa card. She can sue Visa claiming they committed:
Default
Usury
Fraud
Infringement
If you make a payment using a credit card for $200 and your monthly interest rate is 5%, how much would your balance be if you chose not to pay on the credit card for one month?
$220
$210
$240
$200
All the following kinds of debt can be erased during bankruptcy EXCEPT
credit card
Mortgage
Child support
car Loan
Rebecca is planning on attending college in the fall. She has been saving money for a year to pay her tuition, but she is about $1,500 short. Which of the following borrowing options would cost her the least overall?
Credit Card
Student loan
Family loan
Pay day loan
How many years can credit reporting agencies maintain negative information (excluding a bankruptcy) on a person's credit report?
7 years
10 years
5 years
15 years
