The National Credit Code Applies to Related Transactions

question 21

Multiple Choice

The National Credit Code applies to related transactions.Which of the following would qualify as a related transaction under the Code?

• A)A contract to buy gym equipment from Harvey Norman that was paid for by a loan from the Zelda Finance Company.
• B)A guarantee by an aunt that she will be responsible for her nephew's home loan if he cannot satisfy the repayments.
• C)An insurance contract that will provide repayments for a consumer credit loan if the borrower becomes ill and cannot earn an income.
• D)All of the above.
• E)A and B only.

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Definitions:

Combining Form

A linguistic element used in the construction of medical and scientific terminology that generally consists of a root and a vowel to ease pronunciation when combined with another form.

Cancer

A broad term for a large group of diseases characterized by the uncontrolled growth and spread of abnormal cells in the body.

Abbreviation

The act of shortening a word or phrase to create a simpler or more compact form, usually employing the initial letters.

PSA

Prostate-Specific Antigen, a protein produced by the prostate gland, levels of which are tested to screen for and monitor prostate cancer.