AFIP STUDY Exam Questions with Latest Questions with Correct Answers
Question 1:
Although not specifically required by Truth in Lending Act or Reg. Z, an installment sale contract
may contain an acceleration clause. This is a contract provision that allows the finance source
who accepted assignment of the installment sale agreement to require the customer to pay all
or part of the outstanding balance if certain requirements are not met.
Answer:
TRUE
Question 2:
What are the three required elements of a contract?
Answer:
An offer, acceptance and consideration
Question 3:
The CFPB issues UDAAP violations. UDAAP stands for?
Answer:
Unfair, Deceptive, Abusive, Acts or Practices
Question 4:
What are the criteria for "acceptance" of an offer?
Answer:
ALL OF THE ABOVE
Question 5:
An installment sale contract may contain a provision that allows the lender to the insurance if
the customer fails to obtain insurance or lets it lapse.
Answer:
force place
Question 6:
The issues UDAP violations to dealers, the issues UDAAP violations to dealers.
Answer:
FTC, CFPB
,Question 7:
What is an acceleration clause?
Answer:
If the customer defaults under the contract, the lender can make the full outstanding balance
due and payable
Question 8:
TILA/Reg Z treat "loans" and "credit sales" the same way since they are both essentially a
promise to pay.
Answer:
FALSE
Question 9:
The requirement that each party to the contract receives something of value in exchange for
what is given
Answer:
What is "consideration" as it applies to a contract?
Question 10:
What do the letters in UDAP stand for?
Answer:
Unfair, Deceptive, Acts, Practices
Question 11:
Which of the following is considered a "credit sale" transaction under Truth in Lending Act/Reg
Z?
Answer:
Karl arranges funding through the F&I manager for a vehicle purchased at a dealership.
Question 12:
Which Act does Regulation M implement?
Answer:
Consumer Leasing Act (Consumer Leasing Act)
, Question 13:
According to Regulation M, the APR must be disclosed?
Answer:
FALSEFALSE
FALSE
FALSE
Question 14:
Which of the following is / are the advertisement triggering term(s) for a lease ad?
Answer:
ALL OF THE ABOVE
Question 15:
A statement that any capitalized cost reduction or none at all is due prior to or at
consummation or delivery
That no payment is required The amount of any payment
Which of the following disclosures are required by the Consumer Leasing Act/Reg. M to be on a
lease agreement?
Answer:
ALL OF THE ABOVE
Detailed information regarding the lessee's responsibility for maintaining and servicing the
vehicle and the excess wear-and-tear standards and obligations
Whether the customer has the option of purchasing the vehicle at the end of the lease, and if
so, its price
Early termination procedures and responsibilities
Question 16:
The lessee's requirement to provide insurance as required by the lessor Which Act does
Regulation M implement?
Answer:
Consumer Leasing Act
Question 17:
If a lessee is not responsible at the end of the lease for the difference between the residual
value of the vehicle and its actual cash value or realized value, this individual entered into a(n)
lease.
Answer:
CLOSE-END
Question 1:
Although not specifically required by Truth in Lending Act or Reg. Z, an installment sale contract
may contain an acceleration clause. This is a contract provision that allows the finance source
who accepted assignment of the installment sale agreement to require the customer to pay all
or part of the outstanding balance if certain requirements are not met.
Answer:
TRUE
Question 2:
What are the three required elements of a contract?
Answer:
An offer, acceptance and consideration
Question 3:
The CFPB issues UDAAP violations. UDAAP stands for?
Answer:
Unfair, Deceptive, Abusive, Acts or Practices
Question 4:
What are the criteria for "acceptance" of an offer?
Answer:
ALL OF THE ABOVE
Question 5:
An installment sale contract may contain a provision that allows the lender to the insurance if
the customer fails to obtain insurance or lets it lapse.
Answer:
force place
Question 6:
The issues UDAP violations to dealers, the issues UDAAP violations to dealers.
Answer:
FTC, CFPB
,Question 7:
What is an acceleration clause?
Answer:
If the customer defaults under the contract, the lender can make the full outstanding balance
due and payable
Question 8:
TILA/Reg Z treat "loans" and "credit sales" the same way since they are both essentially a
promise to pay.
Answer:
FALSE
Question 9:
The requirement that each party to the contract receives something of value in exchange for
what is given
Answer:
What is "consideration" as it applies to a contract?
Question 10:
What do the letters in UDAP stand for?
Answer:
Unfair, Deceptive, Acts, Practices
Question 11:
Which of the following is considered a "credit sale" transaction under Truth in Lending Act/Reg
Z?
Answer:
Karl arranges funding through the F&I manager for a vehicle purchased at a dealership.
Question 12:
Which Act does Regulation M implement?
Answer:
Consumer Leasing Act (Consumer Leasing Act)
, Question 13:
According to Regulation M, the APR must be disclosed?
Answer:
FALSEFALSE
FALSE
FALSE
Question 14:
Which of the following is / are the advertisement triggering term(s) for a lease ad?
Answer:
ALL OF THE ABOVE
Question 15:
A statement that any capitalized cost reduction or none at all is due prior to or at
consummation or delivery
That no payment is required The amount of any payment
Which of the following disclosures are required by the Consumer Leasing Act/Reg. M to be on a
lease agreement?
Answer:
ALL OF THE ABOVE
Detailed information regarding the lessee's responsibility for maintaining and servicing the
vehicle and the excess wear-and-tear standards and obligations
Whether the customer has the option of purchasing the vehicle at the end of the lease, and if
so, its price
Early termination procedures and responsibilities
Question 16:
The lessee's requirement to provide insurance as required by the lessor Which Act does
Regulation M implement?
Answer:
Consumer Leasing Act
Question 17:
If a lessee is not responsible at the end of the lease for the difference between the residual
value of the vehicle and its actual cash value or realized value, this individual entered into a(n)
lease.
Answer:
CLOSE-END
