Appendix F for Unit Six
Questions on the Features
N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows.
N A question new to this edition of the Test Bank.
+ A question modified from the previous edition of the Test Bank.
= A question included in the previous edition of the Test Bank.
CHAPTER 30—INSIGHT INTO ETHICS:
THE DEBT THAT NEVER GOES AWAY
A1. Dale’s debts are discharged in a liquidation bankruptcy. With respect to Dale’s
prebankruptcy debt, Even Stevens Credit Reporting Agency must automatically report
a. nothing.
b. the debt as “discharged,” except the nondischargeable debt.
c. the debt as “discharged,” including the nondischargeable debt.
d. the debt as “unpaid.”
390 TEST BANK 1—UNIT SIX: CREDITORS’ RIGHTS AND BANKRUPTCY
UNIT SIX—FOCUS ON ETHICS:
CREDITOR’S RIGHTS AND BANKRUPTCY
A2. Rural Credit Corporation lends money to Sven, a farmer, and the owners of other
agricultural enterprises within its region. To compensate for the higher risk of
bankruptcy among its debtors when the prices of agricultural products decrease, Rural
Credit can
a. become less selective in granting credit.
b. increase the interest rate charged to a few borrowers.
c. increase the interest rate charged to everyone.
d. require less security (collateral).
A3. Wendy is a consumer who files for, and is granted, a discharge of her debts in
bankruptcy. The consequences to Wendy of this discharge are most likely to include
a. blemished credit ratings for up to ten years.
b. favorable publicity.
c. lower interest charges for new debts.
d. unexpected job offers from potential employers.