BUSN 380 DEVRY FINAL EXAM SET 2
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home mortgage.<br />
installment loan to purchase new furniture.<br />
line of credit from your bank.<br />
automobile loan.<br />
single lump sum credit loan due in 90 days.<br />
Question 14.14. (TCO 3) If a bank is attempting to evaluate the trade-in value of a 2006 SUV when Anna<br />
McFarland is applying for a used car loan, the bank is examining which of the five Cs? (Points : 4)<br />
<br />
<br />
<br />
<br />
<br />
Character<br />
Capacity<br />
Capital<br />
Collateral<br />
Conditions<br />
Question 15.15. (TCO 3) An example of a credit bureau would be (Points : 4)<br />
<br />
<br />
<br />
<br />
<br />
Equitron.<br />
Transexpress.<br />
the Better Business Bureau.<br />
Experian.<br />
FICO.<br />
Question 16.16. (TCO 3) A _____ would require that Jessica writes a check for $125 in order to obtain a<br />
loan for $100. (Points : 4)<br />
<br />
<br />
<br />
<br />
<br />
credit union<br />
payday advance company<br />
finance company<br />
department store<br />
commercial bank<br />
Question 17.17. (TCO 3) If Anthony Fontain makes a decision to accept a variable-rate loan instead of a<br />
fixed-rate loan, he is _____ with the lender and reducing the lender’s risk. (Points : 4)<br />
<br />
<br />
<br />
<br />
<br />
sharing the interest rate risk<br />
increasing his monthly payments<br />
taking a larger stake in the asset he is purchasing<br />
repaying the loan over a faster period of time<br />
pledging collateral<br />
Question 18.18. (TCO 3) _____ is/are the primary reason(s) why consumers default on their debts.<br />
(Points : 4)<br />
<br />
<br />
Medical expenses<br />
Defective goods and services
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