Exam 21: Flexible Savings Account Options

The Consumer Protection Act of 1988 prohibits a home equity lender from canceling a loan unless fraud, failure to pay or other violations of the loan contract occur.

A financial asset whose rate of return is tied to the performance of the stock market or is based upon some other market indicator is known as a(n):

A combination risk protection and savings instrument offering the consumer money market yields on funds accumulated in a mutual fund is called:

Credit cards have removed the "liquidity constraint" that restricted the spending power of millions of consumers, democratizing access to credit and spending power.

Non installment credit normally is paid off in two equal payments every 6 months.

The consumer lending institution dominant in residential mortgage lending is the:

Eligibility for filing under the new bankruptcy code is subject to a means test, which calls for determining the applicant's monthly average income and comparing that figure to the median income level in his or her home state.

Using the the description or the definition below, identify each of the key terms and concepts presented in this chapter a. Loans extended to people who pledge their homes as collateral for the loan. b. A plastic card that allows its holder to borrow money or to pay for purchases of goods and services. c. A plastic card which identifies the owner when he or she needs to make payments for purchases of goods and services. d. A law passed by the United States that requires covered lenders to fully disclose the proposed terms of a loan.

Consumer purchases of corporate stock have declined drastically over the past decade.

Which of the following laws requires financial-service firms to tell household customers, at least once a year, what their policies are in the handling of personal, nonpublic data?

Interest on home equity loans is tax deductible under current federal law.

The federal law that requires public disclosure of a bank's performance rating in meeting the credit needs of its local community is the:

Using the the description or the definition below, identify each of the key terms and concepts presented in this chapter. a. An interest-bearing checking account available to individuals and nonprofit associations. b. Liabilities of a borrowing customer (other than home mortgages) that are retired in two or more consecutive payments. c. A loan normally paid off in a lump sum rather than in a series of installment payments.

According to the Financial Services Modernization Act, each consumer has to be offered the possibility to "opt out" of at least some information sharing. However, many consumer groups have recently complained that this law is too weak in protecting consumers' personal data and have demanded new privacy laws at federal and state levels.

Total pension fund reserves ranked at the top among all household assets, just exceeding _________ by the year 2009.

Banks must publicly disclose their performance rating under the Community Reinvestment Act.

Consumers, as a group, are the most important lenders of funds in the American economy.

U.S. Congress debated a powerful new bankruptcy bill in the late 1990s and as the twenty-first century began. The proposed new law would raise the cost of consumer bankruptcies and demand that households seeking bankruptcy relief from their creditors receive training in the hope of avoiding future financial problems.

Expectations of future inflation cause consumer borrowing to decrease.

A savings plan allowing withdrawals or deposits at any time (though, technically, a seven-day withdrawal notice may be required) is known as a(n):