Understanding Business and Personal Law

Chapter 22: Borrowing Money and Buying on Credit

Borrowing Money and Buying on Credit


1.	Credit card blocking occurs when you
		A)	use your card in an ATM machine more than four times during a 24-hour period.
		B)	have exceeded your credit limit.
		C)	rent a hotel room or a car.
		D)	haven't paid your credit card bill in two months.


2.	The Equal Credit Opportunity Act
		A)	prevents credit collectors from threatening consumers with violence.
		B)	ensures that businesses and consumers are given an equal chance to obtain credit.
		C)	allows you to correct any errors made on a credit card bill.
		D)	prohibits the abuse of credit.


3.	The average family holds
		A)	twenty credit cards.
		B)	thirteen credit cards.
		C)	six credit cards
		D)	two credit cards.


4.	If you have too much credit card debt, the only way out is to declare bankruptcy.
		A)	TRUE
		B)	FALSE


5.	You have 25 days to inform your creditor that an error has been made on your credit card bill.
		A)	TRUE
		B)	FALSE


6.	Creditors have access to your collateral if you have
		A)	closed-end credit.
		B)	open-ended credit.
		C)	an unsecured loan.
		D)	a secured loan.


7.	You have the right to see your own credit report and correct errors that may be contained that the report.
		A)	TRUE
		B)	FALSE


8.	Open-end credit is credit that is
		A)	increased by the debtor by continuing to purchase goods or services on credit.
		B)	to be repaid within a six month period of time.
		C)	interest-free for a period of up to six months.
		D)	given for a specific amount of money.


9.	If you have a dispute with a credit card purchase, do not pay the bill for the disputed item.
		A)	TRUE
		B)	FALSE


10.	The Truth in Lending Act requires that lenders provide the services of an attorney when you borrow money.
		A)	TRUE
		B)	FALSE