Exam 21: Flexible Savings Account Options

The trend in recent years has been for consumer lending institutions to diversify their lending operations.

Using the the description or the definition below, identify each of the key terms and concepts presented in this chapter a. A federal law that requires correction of billing errors and a prompt investigation of those possible billing errors. b. Federal law that grants borrowing customers the right to view their credit record and demand that any errors in that record be corrected promptly. c. A federal law required covered financial institutions to designate the trade territory they will serve and to serve fully all neighborhoods within that designated trade territory. d. Credit discrimination is illegal when based upon gender, age, national origin, religion or other irrelevant factors.

The primary advantage of universal life insurance is that it is available to everyone.

A financial asset whose rate of return is tied to the performance of the stock market is known as the share draft account.

Young families tend to be heavy users of debt.

The Share Draft is the credit union version of the NOW.

What role do you believe inflation plays in the borrowing and saving decisions of households today?

Most studies of the bankruptcy phenomena find the principal cause of bankruptcy filings to be the incident of tragic offense in people's lives (e.g., loss of a job, destruction of a home, medical expenses, divorce).

The Consumer Credit Protection Act of 1988 prohibits a home equity lender from:

A Chapter 13 bankruptcy filing sets in motion a new debt repayment plan and such a filing normally disappears from the consumer's credit record after 7 years.

In choosing financial assets, modern U.S. household tends to emphasize:

A consumer may challenge any item which appears in his or her credit file and demand an investigation.

The Truth in Savings Act prohibits inaccurate or misleading advertising about deposit accounts.

Credit card holders tend to have higher incomes and better payment records than the general population.

A Chapter 7 bankruptcy can remain on the consumer's credit record for as long as 10 years.

The total outstanding debt owed by U.S. households exceeded $14 trillion by the year end 2009.

In each situation listed below, identify whether a consumer lender would evaluate an individual's request to borrow money as positive and or negative, and explain why. a. The economy's growth appears to be slowing. b. The borrower has held his present job about 10 months. c. The borrower rents an apartment close to her place of work on a month-to-month basis. d. The borrower's monthly income fluctuates significantly due to sales commissions. e. The borrower has a ratio of current debt obligations to disposable income of about 35 percent.

The federal law that requires that a maximum ceiling loan rate be established for all home equity loans is known as the:

Recent legislation that calls for greater transparency in credit cards is the:

The stealing of someone's private information usually for the purpose of representing oneself as the person whose information has been stolen is referred to as: