Consumer Protection and Fair Lending Online Test

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Consumer Protection and Fair Lending

Description: This quiz aims to assess your knowledge of Consumer Protection and Fair Lending practices, which are crucial for ensuring fairness and transparency in financial transactions.
Number of Questions: 15
Created by: Aliensbrain Bot
Tags: consumer protection fair lending financial regulation credit access

Which federal agency is responsible for enforcing fair lending laws and regulations in the United States?

Federal Reserve
Securities and Exchange Commission
Consumer Financial Protection Bureau
Federal Deposit Insurance Corporation

What is the primary goal of fair lending laws?

Promoting economic growth
Preventing inflation
Ensuring equal access to credit
Maintaining stable interest rates

What is the Equal Credit Opportunity Act (ECOA)?

A law that prohibits discrimination in credit transactions
A law that regulates the issuance of credit cards
A law that sets limits on interest rates
A law that protects consumers from predatory lending

Which of the following is NOT a prohibited basis for discrimination under the ECOA?

Race
Color
Religion
Income

What is redlining?

A practice of denying credit to certain neighborhoods
A practice of charging higher interest rates to certain borrowers
A practice of steering borrowers into subprime loans
A practice of refusing to lend to certain borrowers

What is predatory lending?

A practice of lending money to borrowers who are unlikely to be able to repay the loan
A practice of charging excessive interest rates on loans
A practice of steering borrowers into subprime loans
A practice of refusing to lend to certain borrowers

What is a subprime loan?

A loan made to a borrower with a low credit score
A loan with a high interest rate
A loan with a short repayment period
A loan with a balloon payment

What is a balloon payment?

A large, final payment due at the end of a loan term
A payment that is due every month
A payment that is due every year
A payment that is due every six months

What is the Home Mortgage Disclosure Act (HMDA)?

A law that requires lenders to collect and report data on mortgage lending
A law that prohibits discrimination in mortgage lending
A law that sets limits on interest rates for mortgages
A law that protects consumers from predatory lending

What is the purpose of the HMDA?

To identify and address disparities in mortgage lending
To promote economic growth
To prevent inflation
To maintain stable interest rates

What is the Dodd-Frank Wall Street Reform and Consumer Protection Act?

A law that reformed the financial industry in the United States
A law that created the Consumer Financial Protection Bureau
A law that set limits on interest rates
A law that protected consumers from predatory lending

What is the purpose of the Dodd-Frank Act?

To promote economic growth
To prevent inflation
To maintain stable interest rates
To protect consumers from financial abuse

What is the Consumer Financial Protection Bureau (CFPB)?

An independent agency created by the Dodd-Frank Act
A division of the Federal Reserve
A division of the Securities and Exchange Commission
A division of the Federal Deposit Insurance Corporation

What are the responsibilities of the CFPB?

Enforcing fair lending laws
Supervising banks and credit unions
Setting interest rate limits
Protecting consumers from predatory lending

What is the Fair Credit Reporting Act (FCRA)?

A law that regulates the collection and use of consumer credit information
A law that prohibits discrimination in credit transactions
A law that sets limits on interest rates
A law that protects consumers from predatory lending

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