CFPB MCT 3

Card Act 6. Community Credit Card Company increases its annual membership fee. It must send a written notice of change to its borrowers at least ____ days before the effective date of the change. A. 15 B. 30 С. 45 D. 90

С. 45

3. Scott originates the following transaction: a closed-end adjustable rate mortgage with an introductory rate of 3% for two years the interest rate will adjust annually with an index plus a 2% margin , the applicable index is 4% as of the date the interest rate is set , and it has a lifetime interest rate cap of 12% . What APR must he use in applying the APR coverage test ? A. 3% B. 4% С. 6% D. 12%

С. 6 %

Fair Lending 9. Which would NOT cause a compliance violation? A. A lender sends an applicant a written adverse action notice 10 days after receiving a completed loan application. B. A financial institution employee tells a female applicant to return next week to fill out a loan application, but allows a male applicant to fill out an application on the spot. C. A financial institution employee asks Hispanic loan applicants about their residency status, but does not ask other applicants the same question. D. A lender requires a spouse to cosign a loan, even though the applicant qualifies for individual credit.

A. A lender sends an applicant a written adverse action notice 10 days after receiving a completed loan application.

Credit Card 6. Which of the following would be considered "deceptive" acts or practices? A. A pre - approval offer touts a " 0 % APR and No Fee " but charges $ 150 processing fee if approved B. An offer that states "No Balance Transfer Fee" if balances transferred within next three months up to a maximum of $20,000 C. W hile processing an application, providing information on optional credit protection plans and the various benefits and costs D. A and B

A. A pre - approval offer touts a " 0 % APR and No Fee " but charges $ 150 processing fee if approved

Reg E Overdraft 8. Can a consumer revoke their consent to overdraft protection at any time, or, do they need to wait until all transactions have cleared and show up on their monthly bank statement? A. Consumer can revoke consent at any time B. Consumer has to wait for all transactions to clear before she can revoke consent C. Consumer can never revoke consent D. Consumer can revoke consent during the bank's annual open period for revocation

A. Consumer can revoke consent at any time

Reg E Overdraft 4. Molly Mingle is shopping at Anytown Mall and purchases a new sweater with her ATM card. The sweater cost more than she thought and she is not sure she has enough funds in her account. Is Molly's transaction covered? A. Covered transaction B. Non-covered transaction

A. Covered transaction

7. Any time that a credit balance greater than $1 is created in a consumer's account, what must a servicer do? A. Credit the balance to the account and refund the remaining credit balance within 7 days of receiving a written request. B. Credit the balance to the account only, no refund is necessary. C. Credit the balance to the account and refund the remaining credit balance within 10 days of receiving a written request. D. Refund the credit balance within 12 months if no written request is received.

A. Credit the balance to the account and refund the remaining credit balance within 7 days of receiving a written request.

Card Act 1. Which is an acceptable practice? A. Crediting a payment the same day it was received. B. Establishing a payment cutoff time of 4:00 p.m. C. Applying a payment that exceeds the minimum payment amount first to the balance with the highest interest rate and any remaining portion of the payment to balances in ascending order of APRs D. Charging a borrower a payment processing fee even though an expedited service by a customer service representative is not involved

A. Crediting a payment the same day it was received.

Reg B 14. Which of the following is NOT a true statement of what creditors can consider when evaluating applications? A. Creditors may consider if someone is going to have a child or not B. A creditor may consider someone's immigration status. C. A creditor may take into account whether there is a telephone in the applicant's residence D. Creditors must evaluate married and unmarried applicants by the same standards.

A. Creditors may consider if someone is going to have a child or not

Reg B 10. A lender takes extra time to help white male customers to complete loan applications but does not offer the same assistance to Hispanic female customers. What type of discrimination occurred, if any? A. Disparate treatment B. No discrimination C. Disparate impact D. Overt

A. Disparate treatment

5. ___________imposes requirements for collection activities. A. Fair Debt Collection Practices Act (FDCPA) B. Homeowners Protection Act (HPA) C. Fair Credit Reporting Act (FCRA) D. Equal Credit Opportunity Act

A. Fair Debt Collection Practices Act (FDCPA)

Credit Card Lending 3. The Fair Credit Reporting Act: A. Governs when a credit report on an individual may be obtained B. Requires a notice of the reasons for any credit denial or adverse action C. A and B D. None of the above

A. Governs when a credit report on an individual may be obtained

CC: Solicitions, Appl, Credit Decision 5. Prescreening A. Is a procedure that provides a credit card lender an opportunity to better identify creditworthy customers B. Is procedure permitted under TILA so long as the credit card lender follows certain rules C. Is a procedure where a credit bureau pulls credit reports on specific consumers and provides the reports to a credit card lender D. All of the above

A. Is a procedure that provides a credit card lender an opportunity to better identify creditworthy customers

14. How do banks provide support to their communities? A. By donating money to charitable organizations. B. By providing volunteer services through its employees C. By actively participating in local groups. D. All of the above.

D. All of the above.

Credit Card Lending 6. Which of the following is accurate regarding The Fair Credit Reporting Act (FCRA)? A. It permits consumers to challenge the accuracy of their credit ratings B. It prohibits discrimination on the basis of race, color, national origin, religion, age, sex, marital status, receipt of any public assistance or the exercise of legal rights C. It provides consumers with a private right to sue lenders for violations D. A and B

A. It permits consumers to challenge the accuracy of their credit ratings

Reg E Overdraft 9. What is the compliance requirements deadline? A. July 1, 2010 B. January 10, 2014 C. July 1, 2014 D. January 10, 2010

A. July 1, 2010

Fair Lending 6. A lender must notify applicants of which of the following credit outcomes? A. Loan approvals, counteroffers and denials B. Counteroffers only C. Denials only D. Denials and approvals only

A. Loan approvals, counteroffers and denials

Credit Card 2. Under TILA, if a credit card advertisement contains any triggering terms, then three additional disclosures must also be provided. Which of the following are not triggering terms? A. The APR B. A statement of when the finance charge begins to accrue, including any "free ride" period C. The method of determining the balance on which a finance charge may be imposed D. The method of determining the finance charge E. C and D F. None of the above

A. The APR

15. Banking partnerships and outsourcing allows banks to reduce operational costs. A. True B. False

A. True

16. A bank merger or acquisition might occur in order to expand market share. A. True B. False

A. True

9. A financial institution must establish identity, determine legal capacity and ensure authority when opening an account for a customer. A. True B. False

A. True

Card Act 2. A solicitation must contain the Consumer Financial Protection Bureaus Web site address as well as a statement that the Web site can be used to obtain information on shopping for and using credit cards A. True B. False

A. True

Credit Card 8. Under federal law, a federally insured credit card lender can charge any rates and terms to a customer located in another state as permitted by the state where the lender is located. A. True B. False

A. True

Credit Card Lending 5. The Telephone Consumer Protection Act (TCPA) and the Telemarketing Sales Rule govern telephone solicitations, and establish what are permissible and what are prohibited practices A. True B. False

A. True

Reg E Overdraft 10. A bank will be protected from a third party's transaction coding error if the bank has systems in place to identify debit card transactions as one-time or recurring. A. True B. False

A. True

Reg E Overdraft 14. If two or more consumers jointly hold an account, any one joint consumer can opt in for the account A. True B. False

A. True

Credit Card 14. TILA bans: A. Unsolicited issuance of credit cards B. Issuance of credit cards in response to an oral or written request or application for the card C. Issuance of credit cards as a renewal of, or substitute for a previously accepted card D. All of the above

A. Unsolicited issuance of credit cards

13. The head of the organization chart is the ________which is the governing body of t A. Chief Executive Officer B. Bank President C. Chief Operating Officer D. Board of Directors

D. Board of Directors

9. If PMI has not been canceled or automatically terminated, final termination must occur when the loan has reached the midpoint of the amortization period and the borrower is current on the payments. What is the chronological midpoint on a 30- year loan? A. 360 monthly payments B. 180 monthly payments C. 60 monthly payments D. 30 monthly payments

B. 180 monthly payments

Card Act 7. For an account with a grace period, you must provide the borrower with a periodic statement at least ____ days before the grace period expires. A. 30 B. 21 C. 15 D. 10

B. 21

Credit Card 3. For consumers, usually the most advantageous method for calculating the finance charge on credit card accounts is A. Average Daily Balance B. Adjusted Balance C. Previous Balance D. All of the above

B. Adjusted Balance

Card Act 5. At least once every six months you must reevaluate an APR if: A. An APR is increased because the consumer is 60 or more days late. B. An APR is increased and a change in terms notice was required. C. An APR is increased after the Servicemembers Civil Relief Act ceases to apply D. An APR is decreased to an amount equal to or lower than the rate applicable before the increase

B. An APR is increased and a change in terms notice was required.

10. This type of account is opened after someone dies. The probate court appoints an individual as the administrator or executor of the estate. A. Trust account B. Estate account C. Guardianship account D. None of the above

B. Estate account

2. An account held in joint tenancy requires the account holders to act together and both signatures are required for withdrawals. A. True B. False

B. False

Reg E Overdraft 2. Smith and Wesson Attorneys at Law open up a new business in town and visit their local bank to open an account, make deposits, and write checks. If AJ. Smith and Wesson write checks on their account, are the checks covered? A. Covered transaction B. Non-covered transaction

B. Non-covered transaction

Reg E Overdraft 6. What must a financial institution give a consumer before they actually signs up for overdraft protection? A. A list of covered transactions B. Opt-in notice C. A copy of Regulation E D. Her last month's bank statement

B. Opt-in notice

Reg B 7. Which is a true statement about Regulation B? A. Regulation B prohibits discrimination on 7 prohibited bases. B. Regulation B requires that at the "back end" of the lending process, the institutionll's collections staff may not impose tougher collections processes or workout terms on, for example, divorced women than they do on married men, or vice versa. C. Regulation B requires banks to meet the credit needs of the communities they serve. D. Regulation B promotes discrimination on the basis of race.

B. Regulation B requires that at the "back end" of the lending process, the institutionll's collections staff may not impose tougher collections processes or workout terms on, for example, divorced women than they do on married men, or vice versa.

4. If a consumer is represented by an attorney, who is the only person you can contact about the debt of the consumer? A. The consumer B. The attorney representing the consumer C. A relative of the consumer D. Any person with reliable knowledge about the consumer

B. The attorney representing the consumer

Reg B 4. Which does NOT describe an adverse action? A. A refusal to grant credit in substantially the amount or on substantially the same terms requested in an application. B. The loan is approved exactly as submitted C. A termination of an account or an unfavorable change in the terms of an account that does not affect all or substantially all of a class of the creditor's accounts. D. A refusal to grant an application for an increase in credit.

B. The loan is approved exactly as submitted

12. Bank employee's main responsibility is: A. To uphold the bank's code of conduct. B. To act in the best interests of the bank, shareholders and customers C. To provide excellent customer service. D. Execute the bank's policies and procedures

B. To act in the best interests of the bank, shareholders and customers

Credit Card 13. The Fair Credit Billing Act (FCBA) permits credit cardholders to dispute suspected billing errors What is the maximum number of days that a credit cardholder has to dispute the billing error? A. 30 B. 45 C. 60 D. 75

C. 60

Reg E Overdraft 13. A bank's ability to charge overdraft fees for ____ is limited by Regulation E. A. Checks B. ACH transactions C. ATM and one-time debit transactions D. Automatic bill payments

C. ATM and one-time debit transactions

4. Taxes are due November 1. However, a late fee will not be assessed until December 1. When must the servicer pay the taxes? A. By November 1 B. By November 15 C. By November 30 D. None of the above

C. By November 30

11. The local fire district wants an account that offers a higher interest rate than a savings account. They will not need access to the funds for 36 months. Which type of account would best meet their needs? A. Business checking account B. Concentration account C. Certificate of deposit D. Money market deposit account

C. Certificate of deposit

Reg B 5. Which of the following is true statement of what creditors can consider when evaluating applications? A. Creditors may consider if someone is going to have a child or not. B. Creditors can use someone's age as a negative factor when evaluating applications. C. Creditors must evaluate married and unmarried applicants by the same standards D. Creditors can use the lack of a telephone listing in an applicant's name against them when evaluating applications.

C. Creditors must evaluate married and unmarried applicants by the same standards

Reg B 3. Financial institutions are required to request certain information from applicants who apply for loans to purchase or refinance a principal dwelling. What are they? A. Number of Dependents, Residency Status, Race B. Familial Status, Race, Dependents, Age C. Ethnicity, Race, Sex, Marital Status, Age D. Familial Status, Ethnicity, Sex, Age

C. Ethnicity, Race, Sex, Marital Status, Age

10. Which scenario is an example of prohibited conduct on the part of a debt collector? A. Belen calls a consumer at 11 a.m. in the local time zone of the consumer. B. Jonas makes sure the outside of an envelope he mails to a consumer does not indicate the contents relate to debt collection. C. Larry is angry with a consumer, so he calls that consumer repeatedly to annoy her. D. Daniele contacts a third party only once to find out the location information of a consumer.

C. Larry is angry with a consumer, so he calls that consumer repeatedly to annoy her.

21. The Servicemembers Civil Relief Act: A. Requires institutions to report and disclose certain data regarding their housing-related lending activities. B. Forbids discouraging applicants or prospective applicants from making or pursuing a loan application on any "prohibited basis." C. Provides for interest rate reductions and other protections for persons in the military. D. Covers loans made to executive officers, directors, shareholders and related interests

C. Provides for interest rate reductions and other protections for persons in the military.

Credit Card Lending 2. Under the Unfair, Deceptive or Abusive Acts or Practices statutes, a practice is deceptive when A. It causes substantial injury to consumers B. The injury caused could not have been avoided C. There is a representation, omission, act or practice that is likely to mislead D. All of the above

C. There is a representation, omission, act or practice that is likely to mislead

Reg B 6. There are two exceptions when a creditor may ask the applicant's marital status, what are they? A. When the applicant is applying for secured credit or listed dependents on the application B. The applicant has listed dependents on application or if the applicant resides in a community property state C. when the applicant is applying for secured credit or the applicant resides in a community property state D. When the applicant resides in a community property state or the applicant is over 65

C. when the applicant is applying for secured credit or the applicant resides in a community property state

Card Act 4. Prior to account opening and during the first year the account is open, fees the consumer is required to pay cannot exceed _____ of the total credit limit available at account opening A. 5 % B. 15 % C. 20 % D. 25 %

D. 25 %

Card Act 10. A prohibited fee is A. A $25 late payment fee when a consumer is late making a $35 minimum payment. B. A $20 over-the-limit fee after receiving the consumer's consent and providing confirmation C. A $35 returned payment fee after the previous payment was returned for insufficient funds D. A $30 account closing fee

D. A $30 account closing fee

Reg B 8. Which of the following is a true statement? A. A financial institution may face potential Regulation B violations if it cares for applicants B. A financial institution may face potential Regulation B violations if it treats applicants equally C. A financial institution may face potential Regulation B violations if it does not discourage applicants D. A financial institution may face potential Regulation B violations if it discourages applicants.

D. A financial institution may face potential Regulation B violations if it discourages applicants.

3. Which of the following is a duty of a mortgage servicer when a borrower is paying as agreed? A. Receiving and posting payments B. Boarding new loans on the servicing system C. Providing customer statements D. All of the above

D. All of the above

Credit Card 15. Under the FCRA, if credit is denied, the adverse action notice must contain the following: A. Name, address & telephone B. A statement that the credit bureau number of the credit bureau providing the credit report was not involved with the ad verse action and will not be able to provide specific reasons for the action C. A notice of the applicant's right to obtain a free bureau within 60 days and to dispute the accuracy of any information in the credit copy of the credit report from the credit report D. All of the above

D. All of the above

Reg E Overdraft 7. What method can a consumer use to sign up for overdraft protection? A. A form to fill out and mail in or drop off at a branch B. A telephone number to call C. A form on a website where the consumer can click a check box to opt in, then click a button to confirm the choice D. All of the above

D. All of the above

Reg E Overdraft 17. Which statement is TRUE? A. Consumers may only opt in at account opening. B. Consumers must renew their opt-in every year. C. A consumer's opt-in is effective for two years D. Consumers can opt in at any time in any of the ways offered.

D. Consumers can opt in at any time in any of the ways offered.

5. Which fee is included in the points and fees coverage test? A. A loan modification fee B. An appraisal fee that is reasonable and paid to a third party C. Interest D. Loan originator compensation

D. Loan originator compensation

Reg B 13. A lender tells an Asian applicant that he will not qualify for a loan because he does not lend to Asians. What type of discrimination occurred, if any? A. Disparate Treatment B. No Discrimination C. Disparate Impact D. Overt

D. Overt

33. Regulation Z- Truth in Lending Act: A. Assists government agencies in identifying possible discriminatory lending patterns and enforcing anti-discrimination laws. B. Prohibits pyramiding late fees and requires notice to cosigners. C. Requires institutions to implement a written Identity Theft Prevention Program. D. Provides a uniform system of disclosures that enables consumers to compare credit terms more readily and knowledgeably.

D. Provides a uniform system of disclosures that enables consumers to compare credit terms more readily and knowledgeably.

23. Which regulation forbids discouraging applicants or prospective applicants from making or pursuing a loan application on any "prohibited basis? A. Regulation Z- Truth in Lending Act B. Regulation BB - Community Reinvestment Act C. Regulation C - Home Mortgage Disclosure Act D. Regulation B- Equal Credit Opportunity Act

D. Regulation B- Equal Credit Opportunity Act

9. If a consumer has properly disputed a debt in writing, what can you not do? A. Stop collection efforts B. Mail the consumer proof of validity of the debt. C. Provide the consumer with the name and address of the original creditor D. Resume collection efforts without first mailing proof of the debt to the consumer.

D. Resume collection efforts without first mailing proof of the debt to the consumer.

3. ______ accounts have a specific maturity date, earn interest and cannot have funds withdrawn early without a penalty A. Demand deposit B. Interest-earning transaction C. Savings D. Time deposit

D. Time deposit

Credit Card 26. An ad for a credit card states: "Financial Express now offers you a MasterCard Credit Card at a 7.25 % annual rate with no balance transfer fee if balances are transferred within next three months. Call now for more details and to apply!" Which of the following statements is true? A. The ad contains when finance charge will begin to accrue triggering term B. The ad is missing the balance transfer fee disclosure C. The ad contains the "call now for more details" triggering term D. There are no TILA violations E. None of the above

E. None of the above

TISA 32. If a customer only inquires about rates or fees, you need not provide written account disclosures a) True b) False

a) True

16. What did Title 14 of DFA prohibit? a. Loan compensation based on the terms of the mortgage other than principal amount b. Non-QM loans c. Use of ability to pay provisions in foreclosure cases d. Use of manual underwriting systems

a. Loan compensation based on the terms of the mortgage other than principal amount

8. Which consumer law imposes requirements for mortgage servicing transfers, written consumer information requests, resolution of notices of error, force-placed insurance, early intervention and continuity of contact for delinquent borrowers, loss mitigation procedures, general servicing policies and procedures, and escrow maintenance? a. RESPA b. ECOA c. TILA d. HPA

a. RESPA

Remittance 14. Which of the following must a remittance provider give to a sender when the sender pays for a remittance transfer? a. Receipt b. Pre-payment disclosure c. 10 % discount d. Safe harbor

a. Receipt

Credit Card 8. First Credit Card Financial charges an annual renewal fee on its credit cards. It must provide written notice at least 30 days or one billing cycle, whichever is less, before the cycle during which the fee is initially charged, or at the time of imposing the fee if the cardholder has 30 days to cancel with no obligation. a. True b. False

a. True

TISA 8. Institutions that have a repeated TISA violations may face cease and desist orders and civil money penalties. a. True b. False

a. True

Credit Card 2. Jane Smith lost her credit card and reported the loss to the card issuer two days later. with the card. One day after the card issuer was notified a $100 purchase was made with the Between the time the card was lost and reported, a $60 unauthorized purchase was m ade card. Jane's liability for these unauthorized charges is: a. $60 b. $50 c. $100 d. $O

b. $50

10. Targeted marketing of optional products or services on the basis of race, for example, may indicate an increased risk of potential ________ violations. a. RESPA b. ECOA c. TILA d. FCRA

b. ECOA

Credit Card 11. A credit card lender that prescreens consumer must retain for a least 25 months a record of the criteria used to select the consumer for the offer a. True b. False

b. False

Credit Card 5. Big City Bank is increasing its annual fee on its credit cards. It must provide written notice of this change at least 15 days before the effective date of this change. a. True b. False

b. False

TISA 17. If your ad states a rate, it may simply state the acronym APY, and it need not spell out the annual percentage yield? a. True b. False

b. False

TISA 15. The purpose of the TISA is: a. To prevent unlawful discrimination by financial institutions b. To enable consumers to compare information and make informed decisions about accounts at depository institutions. c. To enable consumer to easily compare available credit terms. d. To regulate the sharing of information among financial institutions

b. To enable consumers to compare information and make informed decisions about accounts at depository institutions.

Remittance 10. Within what length of time must you determine that an error has occurred? (remittance) a. Within 90 days after completion of the transfer b. Within 90 days after receiving a notice of error c. Within 180 days after receiving a notice of error d. Within 180 days after the disclosed availability date of the funds

b. Within 90 days after receiving a notice of error

Reg B 2. Within how many days does a creditor have after receiving an incomplete application to either deny or provide a notice of incompleteness? a. 90 days b. 60 days c. 30 days d. 45 days

c. 30 days

Credit Card 9. A consumer becomes delinquent on March 15. Within how many days must the credit card lender report the customer's delinquency to the credit bureau? a. 30 b. 60 c. 90 d. None of the above

c. 90

TISA 5. Which of the following is considered an advertisement? a. Follow-up letter relating to a specific transactiorn b. A rate sheet prepared for internal use only c. A message on a website promoting a savings account d. An educational brochure on managing a checking account

c. A message on a website promoting a savings account

Remittance 8. Which of the following statements is TRUE regarding a transfer scheduled in advance? a. A provider is not required to provide a receipt b. A provider must provide a receipt with 60 days after the date of the transfer c. A provider may include a receipt on the periodic statement for transferred funds held an account by the provider. d. A provider must only provide one receipt and that receipt must be provided when the transfer is originally requested.

c. A provider may include a receipt on the periodic statement for transferred funds held an account by the provider.

18. What is not included in the definition of "inadvertent error"? a. Mechanical error b. Electronic error c. Policy error d. Clerical error

c. Policy error

TISA 18. Which is NOT a likely consequence of a minor, first-time TISA violation? a. The violation is mentioned in an examination report b. Examiners scruntinize your institution for repeat violations during the next examination c. Regulators issue a cease and desist order and assess civil money penalty d. Bank management requires additional training and/or changes in some policies and procedures

c. Regulators issue a cease and desist order and assess civil money penalty

Credit Card 7. Ms. Brady has exercised her right to reject an increase in her credit card APR. Which is her lender allowed to do? a. Require the balance be paid in full within 90 days. b. Increase her APR. c. Require repayment of the account balance by amortizing the balance over a five year period d. Impose a fee for processing the rejection

c. Require repayment of the account balance by amortizing the balance over a five year period

9. Which consumer law imposes requirements on mortgage servicers regarding periodic billing statements, crediting of payments, imposition of late fee and delinquency charges, provision of payoff statements, and disclosures regarding rate changes for ARMs? a. RESPA b. ECOA c. TILA d. HPA

c. TILA

TISA 4. When a consumer asks for a curr ent rate on a 1-year certificate of deposit, the institution must: a. Give consumer a current rate sheet for all accounts at your institution b. Provide consumer with full account disclosures c. Tell consumer the current annual percentage yield d. Tell the consumer the current interest rate

c. Tell consumer the current annual percentage yield

15. What did Title 10 of DFA establish? a. New rules for mortgage origination b. New rules for remittance transfers c. The CFPB d. A budget for the CFPB

c. The CFPB

Reg E Overdraft 44. Initial disclosures (EFTA) a) Must be provided to all joint accountholders b) Must contain the institutions' website address for reporting unauthorized EFTs c) Cannot be provided electronically d) Must be provided brfore the 1st EFT is made

d) Must be provided brfore the 1st EFT is made (confirm this one)

TISA 12. If an APY appears in an adverstisement, then the ad must also contain: a. A statement that fees may reduce earnings on the account b. Minimum balance requirement to obtain the stated APY c. The time period the stated APY is offered d. All of the above

d. All of the above

Credit Card 6. Which statement is true regarding the notice a credit card lender must provide before an over-the-limit fee or a penalty rate can be imposed due to a consumer exceeding a newly decreased credit limit? a. It may be provided orally or in writing. b. It must be provided at least 45 days before increasing the rate or charging an over-the- limit fee. c. It must notify the consumer that the credit limit on the account has been or will be decreased d. All of the above.

d. All of the above.

TISA 11. Crediting involves: a. Maintaining funds on deposit for a specific period of time b. Adding interest to the principal balance in the account (interest on top of interest) c. Calculating interest by applying a periodic rate to the full principal balance in the account each day d. Applying accured interest to an account balance so that it can be added or withdrawn

d. Applying accured interest to an account balance so that it can be added or withdrawn

TISA 13. Which of the following IS an advertisement? a. Follow-up letter relating to a specific transactiorn b. Rate sheet prepared for internal use only c. Educational brochure on managing a checking account d. Direct mail solicitation

d. Direct mail solicitation

Credit Card 9. Which of the following statements are correct? a. A credit card lender may but need not provide a firm offer of credit to each consumer on the prescreen list. b. A credit card lender may not verify creditworthiness of the consumer upon making an offer to each consumer on a prescreen list. c. Prescreening is a procedures where a credit bureau pulls credit reports on specific consumers and provides the reports to a credit card lender d. None of the above

d. None of the above

TISA 6. Advertisements that state a rate must: a. State only the interest rate b. Make the interest rate more conspicuous than the APY c. Use the abbreviation APY d. Spell out "Annual Percentage Yield" at least once

d. Spell out "Annual Percentage Yield" at least once

7. A loan originator persuades a consumer to consummate a transaction based on the fact that the originator will receive greater compensation from the creditor in that transaction than in other transactions the originator offered or could have offered. What is this practice called? a. Redlining b. Comparative discrimination c. Discouragement d. Steering

d. Steering

Student Lending 12. What are some features of a private education loan? a. Subsidized, not insured by the federal government, can be forgiven b. Subsidized, federally insured, cannot be forgiven c. Unsubsidized, not insured by the federal government, can be forgiven d. Unsubsidized, not federal insured, cannot be forgiven

d. Unsubsidized, not federal insured, cannot be forgiven

TISA 16. Jane and Time are opening a joint checking account. Which statement is false? a. You may provide disclosures in any order and on multiple pages b. If they are opening the account through your website, you may email disclosures, as long as they consent. c. You may provide disclosures to either Jane or Tim before opening the account d. You must provide disclosures to both Jane and Tim before opening the account

d. You must provide disclosures to both Jane and Tim before opening the account

Credit Card 10. Which of the following statements are correct? a. TILA bans issuance of unsolicited credit cards to consumer but not businesses b. TILA bans telephone solicitation of credit cards c. The TCPA & Telemarketing Sales Rule prohibit telemarketing of credit cards d. All of the above e. None of the above

e. None of the above