The Add-On Clause on a Consumer Loan

question 64

Multiple Choice

The add-on clause on a consumer loan

• A)allows you to add on additional loans at the existing rate on your current loans.
• B)allows the creditor to add on additional interest when the market rate of interest rises.
• C)allows the lender to repossess all goods purchased with the original loan even though your total payments may have been enough to cover an earlier purchase.
• D)allows you to extend the term of the loan by adding on additional installments.

---

Definitions:

Difference Threshold

The minimum difference in stimulation that a person can detect 50 percent of the time, also known as the just noticeable difference.

Stimulus

Anything in the environment that is detectable by an organism and can elicit a physical or behavioral response.

Receptor Cells

Receptor cells are specialized cells found in the senses (like those for taste, smell, and sight) that respond to specific stimuli by triggering an electrical signal.

Sense Organs

Specialized structures that detect external stimuli, allowing organisms to perceive the world around them.