82. (p. 151) Bankruptcy courts treat gift cards A. As illegal loans B. As bribes C. The same way they handle unsecured debt D. As a smart choice E. The same as debit cards
83. (p. 153) Before taking out a loan, you should ask yourself whether you can meet all of your essential expenses and still afford the monthly loan payments. This can be determined by: A. Adding up basic monthly expenses then subtracting this total from take-home pay. B. Asking what you plan to give up to make the monthly loan payment. C. Multiplying your take-home pay by 50 percent and subtracting your current loan payments. D. A and B are correct. E. A, B, and C are correct.
84. (p. 154) Experts suggest that the debt payments-to-income ratio should be a maximum of A. 0 percent B. 20 percent C. 25 percent D. 50 percent E. 100 percent
85. (p. 154) If you have reached the upper limit of debt obligations, your debt-to-equity is about A. 0 B. .2 C. .25 D. .5 E. 1
86. (p. 154) When calculating the debt-to-equity ratio, the following is NOT included: A. Credit card balances B. Open-end credit C. Auto loan balances D. Mortgage balance E. All of the above are included in the calculation
87. (p. 154) The question “will you repay the loan?” relates to A. Character B. Capacity C. Capital D. Collateral E. Conditions
88. (p. 154-155) The question “what are your assets and net worth?” relates to A. Character B. Capacity C. Capital D. Collateral E. Conditions
89. (p. 154-155) The use of property or savings to secure a loan relates to A. Character B. Capacity C. Capital D. Collateral E. Conditions
90. (p. 154-155) A loan officer is examining whether or not he/she will offer you a loan today. Specifically, he/she is examining your income and debts. Which of the five Cs is the loan officer reviewing? A. Character B. Capacity C. Capital D. Collateral E. Conditions
91. (p. 157) The Equal Credit Opportunity Act (ECOA) prohibits a lender from discriminating based on A. Race B. Nationality C. Age D. Sex E. All of these are prohibited.