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Business Law, Chapter 4

Total questions: 27

Worksheet time: 14mins

Name
Class
Date
1.

When I applied for a position with the school system, they viewed my credit history. while checking my background. I have the right to know that they viewed my credit history because of which act?

a)

Credit Card Act of 2009

b)

Usury Law

c)

Truth in Lending Act

d)

Fair Credit Reporting Act

2.

While my son was studying in Austria, his wallet, including the family credit card, was stolen by a pick pocket. Which act limited our liability?

a)

Federal Deposit Insurance Act

b)

Electronic Funds Transfer Act

c)

Thrift and Bank Fraud Act

d)

Home Equity Loan Consumer Protection Act

3.

We purchased a new vehicle from a dealership. The vehicle was financed through the dealership. We never received a statement outlining the repayment terms and the annual percentage rate. Which law did the dealership violate?

a)

Credit Card Act of 2009

b)

Usury Law

c)

Truth in Lending Act

d)

Fair Credit Reporting Act

4.

Which act was created to maintain the public's confidence in banks and encourage stable banking practices?

a)

Rights to Financial Privacy Act

b)

Thrift and Bank Fraud Act

c)

Electronic Fund Transfer Act

d)

Federal Deposit Insurance Act

5.

What is the current market value of the home minus the remaining mortgage balance?

a)

Replacement Cost

b)

Actual Cash Value

c)

Property Value

d)

Home equity

6.

A person or business receiving credit is referred to as:

a)

Bank

b)

Creditor

c)

Debtor

d)

Slave

7.

This organization protects consumers' right to attain, use and maintain credit by monitoring and enforcing credit laws.

a)

Federal Trade Commission

b)

Thrift and Bank Fraud Act

c)

Credit Card Companies

d)

Banks

8.

The bank to whom I owe my mortgage contacted my employer several times last week declaring that my home would be foreclosed on if I don't make an immediate payment. Which act provides protection against this kind of treatment?

a)

Truth in Lending Act

b)

Fair Debt Collection Practices Act

c)

Credit Card Act of 2009

d)

Electronic Fund Transfer Act

9.

The purpose of this act was to increase the government's ability to combat bank fraud by increasing the prison time and penalties associated with such crimes.

a)

Truth in Lending

b)

Right to Financial Privacy

c)

Home Equity Consumer Protection

d)

Thrift and Bank Fraud

10.

I recently opened a new credit card. The letter stating that I had been approved included my gold card limit of $50,000 and the annual interest rate of 14.3%. The credit card company followed which law?

a)

Truth in Lending Law

b)

Usury Law

c)

Credit Card Act of 2009

d)

Fair Credit Reporting Act

11.

When checking my credit report recently, I discovered a discrepancy. I found a "non-payment" associated with a person named Jackie Johnson. This is not me. Which act was passed to assist me in getting this corrected?

a)

Disputed Charged Reform Act

b)

Fair Credit Reporting Act

c)

Fair Credit Billing Act

d)

Truth in Lending Act

12.

Bob is 70 years old with many health issues. He routinely sees his doctor. What type of social security benefit will cover him?

a)

Disability

b)

Medicare

c)

Retirement

d)

Survivors

13.

While my family was vacationing at the beach, we were hit by a tropical storm. My car was totaled. What coverage would I need on my auto insurance policy in order for them to pay a claim?

a)

Liability

b)

Property Damage

c)

Comprehensive

d)

Collision

14.

The fee paid to an insurance company in return for the insuring of property or person is referred to as:

a)

Claims

b)

Premiums

c)

Costs

d)

Expenses

15.

Which type of life insurance is the least expensive?

a)

Term

b)

Whole

c)

Universal

d)

Variable

16.

Under which section is the value of your home reflected on a homeowner's policy?

a)

Dwelling

b)

Other Structures

c)

Personal Property

d)

Loss of Use

17.

Which type of insurance could provide coverage for my care in an assisted living facility?

a)

Disability Insurance

b)

Long Term Care Insurance

c)

Life Insurance

d)

Health Insurance

18.

While delivering packages to my home, an Amazon driver was bitten by my dog. What type of insurance would cover her injuries?

a)

Med Pay

b)

Business Insurance

c)

Auto Insurance

d)

Homeowners Insurance

19.

Some homeowners insurance companies will not cover the liability associated with certain breeds of dogs. This could be an example of:

a)

an exclusion

b)

a liability

c)

a claim

d)

fraud

20.

Joe wants to add his children to his existing life insurance policy. Which type of insurance might allow him to do so?

a)

Dental

b)

Long Term Care

c)

Dependent Rider

d)

Umbrella

21.

If you are ever in accident that is caused by another driver who does not have auto insurance, what coverage would it be helpful to have on your property?

a)

Comprehensive

b)

Collision

c)

Liability

d)

Uninsured Motorist

22.

Which of the following is not covered by a standard homeowner's policy?

a)

Lightning strike

b)

Vandalism

c)

Earth movement

d)

Fire

23.

What is the typical relationship between deductibles and premiums on an insurance policy?

a)

As deductibles are decreased, premiums decrease

b)

As deductibles are increased, premiums decrease

c)

They remain constant

d)

There is no relationship

24.

Which government program provides health insurance coverage to low income groups?

a)

Medicare

b)

Medicaid

c)

Medigap

d)

Individual Insurance

25.

You back into another driver in a parking lot and found to be at fault. What part of your auto insurance policy will provide coverage for the other party's vehicle?

a)

Liability Property Damage

b)

Comprehensive

c)

Collision

d)

Extended Transportation

26.

You back into another driver in a parking lot and found to be at fault. What part of your auto insurance policy will provide coverage for your vehicle?

a)

Liability

b)

Comprehensive

c)

Collision

d)

Extended Transportation

27.

Which group managed health insurance plan requires that you select a primary care physician who is responsible for managing and coordinating all of your health care?

a)

HMO

b)

PPO

c)

HMO (POS)

d)

Individual