Which of the Following Are Lenders Prohibited from Asking on a Credit

question 29

Multiple Choice

Which of the following are lenders prohibited from asking on a credit application?

• A) The applicant's income
• B) If the applicant has a telephone
• C) If the applicant has declared bankruptcy in the past
• D) How long the applicant has been on the job
• E) Lenders are not prohibited from asking any of the above

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Definitions:

Current Yield

This term denotes the annual income (interest or dividends) divided by the current price of the security, often used in reference to bonds.

Par Value

The face value of a bond or the stock value stated in the corporate charter, which is often different from its market value.

Call Feature

A provision in a bond or other fixed-income security that allows the issuer to repurchase and retire its bonds before they reach their specified maturity date.

Coupon Rate

The annual interest rate paid by a bond's issuer to its holders, expressed as a percentage of the bond's face value.