Debt & Bankruptcy - Final Assessment

Which of the following defines debt?

• Sum of money due to another

• Institution which lends an individual or business entity cash to purchase goods

• Individual or business which seeks to borrow credit from a financial institution

• Legal process for debtors to liquidate their assets

Open-ended credit is credit for which debtors are given a specified amount of credit to purchase specific consumer goods and intangible goods.

• True

• False

Which of the following is NOT a good debt product?

• Real estate loan

• Student loan

• Car loan

• Business loan

Chapter 7: Ordinary Bankruptcy must be filed voluntarily.

• True

• False

Which Chapter of Bankruptcy does NOT require a plan of some sort to be developed?

• Chapter 7 (Ordinary Bankruptcy)

• Chapter 11 (Reorganization)

• Chapter 12 (Family Farmer Debt Adjustment)

• Chapter 13 (Individual Debt Adjustment)

Credit Reporting Agencies can report a declaration of bankruptcy for the remainder of your life.

• True

• False

Inflation, Interest Rate Ceilings, Monetary Policy are three issues the Federal Reserve Board encounters as a result of insufficient debt.

• True

• False

You only lose assets when declaring Chapter 7 Bankruptcy.

• True

• False

Which of the following is NOT a way of getting out of debt?

• Tapping into savings

• Opening and closing accounts

• Debt consolidation

• Refinancing