Chapter Review
Chapter 25:
Credit and Other Financial Services
Practice Test
1.
What is an example of credit?
a.
ATM card
b.
check
c.
debit card
d.
charge card
2.
Overdraft protection is a(n) __________.
a.
check
b.
agreement of the bank to cover checks that are written when there are insufficient funds in the account
c.
ATM card
d.
agreement of the bank customer to ensure that there are sufficient funds in the bank account before writing a check
3.
If an unauthorized withdrawal was made from a checking account, the customer will __________.
a.
lose the money
b.
lose the money unless he files a written statement within 30 days
c.
lose the money unless he files a written statement within 60 days
d.
not lose the money
4.
The difference between using a check and a check card is that __________.
a.
a fee is charged when using a check card
b.
a check card immediately deducts the amount from the buyer's bank account
c.
a check card can be used for more money than is in the buyer's account
d.
there is no difference
5.
Sabine lost his credit card. The thief charged $3,000 on the stolen card. Sabine will __________.
a.
have to pay $3,000
b.
not have to pay anything
c.
have to pay $50 regardless of when Sabine notified the bank that the card was stolen
d.
have to pay $50 only if he notified the bank within two business days of discovering the card was stolen
6.
Sabine also lost his debit card. The thief used the debit card to pay for $3,000 worth of electronic equipment. Sabine will __________.
a.
have to pay $3,000
b.
not have to pay anything
c.
have to pay $50 regardless of when Sabine notified the bank that the card was stolen
d.
only have to pay $50 provided he notified the bank within two business days of discovering the card was stolen
7.
Finance charges include __________.
a.
interest plus other fees
b.
the amount of money borrowed
c.
ten percent of the amount borrowed
d.
five percent of the amount borrowed
8.
If a person has an erroneous charge to her credit card, to protect her rights under the law, she should __________.
a.
call the credit card company
b.
call the merchant listed on the billing statement and protest the erroneous charge
c.
make a written complaint to the credit card company
d.
make a written complaint to the merchant listed on the billing statement
9.
Student loans __________.
a.
are not common in the United States
b.
are granted to about 97 percent of today's college students
c.
have high interest rates
d.
do not have to be repaid if the student drops out of school
10.
What debts are NOT wiped out through bankruptcy?
a.
credit card debt
b.
car loans
c.
department store debt
d.
student loans
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