Credit Quiz

Click on the answer you believe is correct.

1. If your precomputed auto loan provided for 48 equal installments, but you paid the car off after 24 months, what percent of the finance charge would be refunded on a precomputed loan?

2. If you are a farmer, you are protected under the Indiana consumer credit laws if your credit purchase is a:

3. The Fair Debt Collection Practices Act applies to which of the following:

4. If you have been billed on your credit card for goods or services you did not receive, what should you do?

5. The least expensive credit is the transaction with the lowest?

6. You may be denied credit if?

7. If you have a charge account with your local (Indiana) furniture store, the maximum interest rate is:

8. The maximum delinquency charge that can be imposed on Indiana contracts is:

9. If you sign a credit agreement to buy a vacuum cleaner sold to you in your home, you may:

10. The Indiana Department of Financial Institutions (DFI) is an agency of State Government which:


  1. 26% Under the method of rebating by the Rule of 78s, after 24 months 74% of the finance charge has been earned.
  2. Refrigerator. An Indiana credit transaction is one for a personal, family, or household purpose, not for a business purpose.
  3. Collection Agencies. The Act applied to third party debt collectors, not the actual creditor.
  4. Notify the credit card company in writing. The Federal Truth in Lending Act requires you to put your billing disputes in writing.
  5. Annual Percentage Rate. The Annual Percentage Rate is the cost of your credit expressed as a yearly rate; the lower, the better.
  6. You have insufficient income. You can be denied credit because of your income but not because of your age, sex, or race.
  7. 21%. The maximum rate for Indiana revolving charge accounts is 21%.
  8. $16.00. The maximum delinquency charge allowed for Indiana transactions is $16.00 effective 7/1/00.
  9. Cancel within 3 business days. You have 3 business days to cancel a credit sale agreement made in your home.
  10. 10 Regulates Financial Institutions. The DFI regulates State Charted Depository Institutions as well as finance companies, pawnbrokers, check cashers, companies who issue money orders, and rental purchase businesses.