BSA 3-4 - Quiz 4 - Group 3
BSA 3-4 - Quiz 4 - Group 3
1. Mr. X is an agent of a car-dealing company. Mr. Y is thinking of buying a car for his wife and
he will buy it on credit. Since Mr. Y was so excited for the commission that he will receive
for selling the car, he forgot to disclose information like finance charges and the annual
percentage rate. Did Mr. Y violate the "Truth in Lending Act?"
Yes
Maybe
No
2. Mr. Z is the owner of the car-dealing company. It is the company's policy to fully disclose
prior to the consummation of the transaction a clear statement in writing every
information with regards to any kind of sale. Because of Mr. Y's negligence, Mr. Z is being
sued by Mr. X. Did Mr. Z violates the "Truth in Lending act?"
Yes
Maybe
No
3. Mr. X bought the car during April 7,2020. After a year and a half, he then realized that the
employee of the car-dealing company never disclosed to him the terms of the contract.
Can Mr. X still recovers such a penalty?
Yes
Maybe
No
2 years
1 year
6 months
5. It is a person engaged in the business of extending credit (including any person who as a
regular business practice make loans or sells or rents property or services on a time, credit,
or installment basis, either as principal or as agent) who requires as an incident to the
extension of credit, the payment of a finance charge.
Debtor
Buyer
Board
Creditor
Debtor
Buyer
Person
Creditor
7. The declared policy behind the law is to protect the people from lack of awareness of the
true cost of credit by assuring full disclosure of such cost, with a view of preventing the
uninformed use of credit to the detriment of the national economy.
True
False
8. XYZ Corporation bought ten (10) units of Honda Civic from CCC
Corporation. ABC Bank granted a loan to XYZ Corporation which executed a
financing agreement which provided for the principal amount, the installment
payments, the interest rates and the due dates. On due dates of the installment
payments, XYZ Corporation was asked to pay for some handling charges and other
fees which were not mentioned in the Financing Agreement. Can XYZ Corporation
refuse to pay the same?
No, because handling charges and other fees are usual in certain banking transactions.
Yes, because ABC Bank is required to provide XYZ Corporation not only the amount of
the monthly installments but also the details of the finance charges as required by the Truth
in Lending Act.
No, because the Finance Agreement is a valid document to establish the existence of
the obligation.
Yes, because legally, finance charges are never allowed in any banking transactions.
9. ABC Corporation is engaged in lending funds to small vendors in various public markets.
To fund the lending, ABC Corporation raised funds through borrowings from friends and
investors. Which statement is most accurate?
10. Entities engaged in the lending of funds obtained in the form of deposits from the public.
Banks
Quasi Banks
Pawnshop
Commercial Banks
11. Any punishment or penalty under this law shall apply also to the Philippine
Government or any agency or any political subdivision thereof.
True
False
12. It includes interest, fees, service charges, discounts, and such other charges incident to
the extension of credit as may be prescribed by the Monetary Board of the Bangko
Sentral ng Pilipinas through regulations.
Interest Charges
Finance Charges
Service Revenue
13. Republic Act No. 3765 also known as "Truth in Lending Act" was approved on *
False
15. Any creditor shall furnish to each person to whom credit is extended, prior to the
consummation of the transaction, a clear statement in writing with the following
information except:
Non-finance charges
16. Give at least three transactions that are covered by Truth Lending Act
17. Who governs all the registered banks situated in the Philippines?
Bank of Commerce
Department of Finance
Nestor Espenilla
Benjamin Diokno
Carlo Katigbak
P1,000 to P5,000