Question 1

Maria borrows funds through the U.S. Department of Education (DOE) to pay for her education. She defaults on the loan. In some states​
A) ​any of the choices.
B) ​a lien can be placed on the debtor's real property to pay the debt.
C) ​the debt can be collected by garnishment of the debtor's bank account.
D) ​the debtor's professional license can be revoked.

Accepted Answer

A

Question 2

Beth borrows $10,000 from the U.S. Department of Education to help pay for her education at Community College. She signs a note payable to DOE for the amount of the loan plus interest. The borrower will be considered in default if she fails to​
A) ​any of the choices.
B) ​repay the loan according to the terms in the note.
C) ​graduate from Community College within four years of the loan.
D) ​find employment in her program of study after graduation.

Accepted Answer

Beth will be in default if she fails to repay the loan according to the terms listed in the note. Graduation from Community College and finding employment in her field of study are not conditions of the loan and therefore not relevant to being considered in default.

Question 3

Lonny borrows funds through the U.S. Department of Education (DOE) to pay for his education. He defaults on the loan. DOE​
A) ​can keep the debtor's tax refund.
B) ​may garnish the debtor's paycheck without a court order.
C) ​might take the debtor's federal benefits.
D) ​any of the choices.

Accepted Answer

The U.S. Department of Education (DOE) has the authority to take any of the above actions to collect on defaulted student loans. Therefore, any of the choices can be the best choice depending on the specific circumstances of the default.

Question 4

Apple Pay and other phone-based payment systems enable mobile devices to​
A) ​link from a digital wallet to another app within a single phone.
B) ​entail more security risks than carrying a physical wallet.
C) ​communicate wirelessly with point-of-sale systems.
D) ​work with existing magnetic-strip credit-card machines.

Accepted Answer

Apple Pay and other phone-based payment systems use Near Field Communication (NFC) technology to communicate wirelessly with point-of-sale (POS) systems, enabling users to make payments without physically swiping a card. The technology allows for a more seamless and convenient payment experience, while also providing enhanced security measures such as tokenization and biometric authentication.

Question 5

Ben defaults on his debt to Credit Loan Company. The creditor obtains a judgment against Ben, who immediately moves to another state. Generally, the judgment will be​
A) ​honored in other states.
B) ​enforced only in the state in which it was obtained.
C) ​appealed.
D) ​revoked.

Accepted Answer

Judgments are generally honored in other states through a process called domestication or registration, which allows the creditor to use the court system in the new state to enforce the judgment.

Question 6

Olivia borrows $25,000 from the U.S. Department of Education to help pay for her education at Public University. She signs a note payable to DOE for the amount of the loan plus interest. The loan may be canceled if she is​
A) ​a teacher in a certain school or subject area.
B) ​a military serviceperson.
C) ​a medical technician.
D) ​any of the choices.

Accepted Answer

All of the choices may result in loan cancellation or forgiveness under certain conditions. Teachers in certain school or subject areas may be eligible for loan forgiveness after a certain number of years of teaching in schools serving low-income families. Military servicepeople may qualify for loan forgiveness under the Public Service Loan Forgiveness program. Medical technicians may be eligible for loan forgiveness under the National Health Service Corps Loan Repayment Program.

Question 7

Robert borrows $15,000 from State College to help pay for his education. He signs a note payable to the school for the amount of the loan plus interest. Robert defaults, and the school transfers the note to a collection agency. This means that​
A) ​additional costs to collect payment can be added to the unpaid principal.
B) ​additional requirements can be imposed on the borrower to graduate.
C) ​none of the choices.
D) ​Robert may have to accept a job offer from a select list of employers.

Accepted Answer

When a note is transferred to a collection agency, the agency can add additional costs to the unpaid principal to cover their collection efforts. This is a common practice in loan collection. Option B is not applicable as the loan and its terms do not impact the borrower's ability to graduate. Option D is not applicable as the borrower's job options are unrelated to the loan or the collection agency. Option C is incorrect, as there is a consequence to Robert defaulting on the loan.

Question 8

Mobile payment and digital wallet services include Apple Pay, Google Wallet, and Samsung Pay. The ultimate goal of these payment systems is to​
A) ​link from a digital wallet to another app within a single phone.
B) ​entail more security risks than carrying a physical wallet.
C) ​communicate wirelessly with point-of-sale systems.
D) ​work with existing magnetic-strip credit-card machines.

Accepted Answer

The answer of Mobile payment and digital wallet services include...

Question 9

Rita borrows $20,000 from the U.S. Department of Education to help pay for her education at State University. She signs a note payable to DOE for the amount of the loan plus interest. The loan may be discharged if​
A) ​Rita does not graduate from State University within six years of the loan.
B) ​in bankruptcy, repayment would cause Rita undue hardship.
C) ​any of the choices.

Accepted Answer

Option B is the best choice because it is the most likely circumstance for loan discharge. This is because discharging a student loan in bankruptcy requires the borrower to demonstrate undue hardship, which is a difficult standard to meet. Option A is not the best choice since it only applies if Rita does not graduate within six years. Option C is not the best choice because it is too broad, as not all circumstances would warrant loan discharge.

Question 10

Online retailers that have a physical presence within a state must collect state taxes on any Web sales made to residents of that state. Sell2U.com, Inc., an online retailer based in California, pays Tracker Web Services, which is located within New York, to direct traffic to Sell2U.com's site. If Sell2U.com must collect and remit taxes on its sales to New York residents, it is most likely because​
A) ​Sell2U.com's deal with Tracker falls within New York's definition of physical presence.
B) ​Congress has explicitly chosen to tax Internet sales.
C) ​the United States Supreme Court has ruled that a state can compel an out-of-state business to collect and remit state taxes.
D) ​New York requires its residents to self-report their purchases and pay use taxes to the state.

Accepted Answer

Online retailers that have a physical presence within a state must collect state taxes on any Web sales made to residents of that state. In this case, Sell2U.com pays Tracker Web Services in New York, which might qualify as a physical presence within the state of New York, thereby requiring Sell2U.com to collect and remit sales taxes on its sales to residents of New York.

Question 11

Businesses have been required to switch to digital invoices in​
A) ​the European Union.
B) ​the United States.
C) ​countries that host the Association of Financial Professionals.
D) ​the home regions of cloud-based companies.

Accepted Answer

The European Union has required businesses to switch to digital invoices in order to facilitate cross-border accounting and reduce administrative costs.

Question 12

A digital invoice is​
A) ​an electronic version of a paper bill that can be paid online.
B) ​an online view of a paper bill that cannot be paid online.
C) ​a statement for a subscription service that makes B2B payments.
D) ​a supplemental record of a transaction payment.

Accepted Answer

A digital invoice is an electronic version of a paper bill that can be paid online. It is a digital representation of a traditional paper invoice and allows for easier and faster payment processing.

Question 13

Fleet Feet, an online travel company, buys blocks of rooms from Grande Hotel, a hotel in Harbor City, at a wholesale rate. Fleet Feet resells the rooms to consumers at a retail rate. One recent effort by cities to collect taxes from e-commerce has focused on​
A) ​hotels that sell blocks of rooms at wholesale rates.
B) ​non-resident consumers who reserve rooms in in-state hotels.
C) ​online travel companies.
D) ​the dire financial straits of the cities during the latest recession.

Accepted Answer

The question's focus is on taxes on e-commerce, which would include online travel companies like Fleet Feet. Choice A only mentions hotels, while choice B only mentions non-resident consumers, which do not fully address the question's focus. Choice D is not related to the question at all.

Question 14

Hailey, a U.S. citizen, buys John Lennon's piano from Kent, who is in Great Britain. Particularly useful to Hailey, who would prefer to conduct this deal as a secured transaction, is​
A) ​Resale Weekly.
B) ​eBay.com.
C) ​Escrow.com.
D) ​Flippa.com.

Accepted Answer

Escrow.com offers secure transactions for high-value items like a piano. It acts as a trusted intermediary between the buyer and seller, holding the funds until both parties are satisfied with the transaction. This provides protection for both Hailey and Kent in case of any disputes. Resale Weekly and eBay.com are online marketplaces, not specifically designed for secured transactions. Flippa.com is a marketplace for buying and selling websites, not physical goods like a piano.

Question 15

Fred buys a car from Gina online. To assure that the car is delivered in the condition promised, Fred​
A) ​must trust the seller.
B) ​can use an escrow company.
C) ​must file a financing statement.
D) ​may take possession of different property of the seller as collateral.

Accepted Answer

Using an escrow company would ensure that the payment is held in a secure account until the car is delivered and inspected by the buyer. This provides a level of protection for both the buyer and the seller.

Question 16

Deb defaults on her debt to EZ Credit Company. The lender obtains a judgment against Deb, who quickly moves to another state. The judgment is domesticated in Deb's new location. If the lifespan of the judgment lapses before it can be collected, the domestication​
A) ​also lapses.
B) ​may be subject to garnishment.
C) ​can be renewed.
D) ​must be frozen.

Accepted Answer

The domestication can be renewed if the lifespan of the judgment lapses before it can be collected.

Quiz 34: Digital Update: Taxing Web Purchases

Maria borrows funds through the U.S. Department of Education (DOE) to pay for her education. She defaults on the loan. In some states​

Beth borrows $10,000 from the U.S. Department of Education to help pay for her education at Community College. She signs a note payable to DOE for the amount of the loan plus interest. The borrower will be considered in default if she fails to​

Lonny borrows funds through the U.S. Department of Education (DOE) to pay for his education. He defaults on the loan. DOE​

Apple Pay and other phone-based payment systems enable mobile devices to​

Ben defaults on his debt to Credit Loan Company. The creditor obtains a judgment against Ben, who immediately moves to another state. Generally, the judgment will be​

Olivia borrows $25,000 from the U.S. Department of Education to help pay for her education at Public University. She signs a note payable to DOE for the amount of the loan plus interest. The loan may be canceled if she is​

Robert borrows $15,000 from State College to help pay for his education. He signs a note payable to the school for the amount of the loan plus interest. Robert defaults, and the school transfers the note to a collection agency. This means that​

Mobile payment and digital wallet services include Apple Pay, Google Wallet, and Samsung Pay. The ultimate goal of these payment systems is to​

Rita borrows $20,000 from the U.S. Department of Education to help pay for her education at State University. She signs a note payable to DOE for the amount of the loan plus interest. The loan may be discharged if​

Businesses have been required to switch to digital invoices in​

A digital invoice is​

Fleet Feet, an online travel company, buys blocks of rooms from Grande Hotel, a hotel in Harbor City, at a wholesale rate. Fleet Feet resells the rooms to consumers at a retail rate. One recent effort by cities to collect taxes from e-commerce has focused on​

Hailey, a U.S. citizen, buys John Lennon's piano from Kent, who is in Great Britain. Particularly useful to Hailey, who would prefer to conduct this deal as a secured transaction, is​

Fred buys a car from Gina online. To assure that the car is delivered in the condition promised, Fred​

Deb defaults on her debt to EZ Credit Company. The lender obtains a judgment against Deb, who quickly moves to another state. The judgment is domesticated in Deb's new location. If the lifespan of the judgment lapses before it can be collected, the domestication​

Maria borrows funds through the U.S. Department of Education (DOE) to pay for her education. She defaults on the loan. In some states

Beth borrows $10,000 from the U.S. Department of Education to help pay for her education at Community College. She signs a note payable to DOE for the amount of the loan plus interest. The borrower will be considered in default if she fails to

Lonny borrows funds through the U.S. Department of Education (DOE) to pay for his education. He defaults on the loan. DOE

Apple Pay and other phone-based payment systems enable mobile devices to

Ben defaults on his debt to Credit Loan Company. The creditor obtains a judgment against Ben, who immediately moves to another state. Generally, the judgment will be

Olivia borrows $25,000 from the U.S. Department of Education to help pay for her education at Public University. She signs a note payable to DOE for the amount of the loan plus interest. The loan may be canceled if she is

Robert borrows $15,000 from State College to help pay for his education. He signs a note payable to the school for the amount of the loan plus interest. Robert defaults, and the school transfers the note to a collection agency. This means that

Mobile payment and digital wallet services include Apple Pay, Google Wallet, and Samsung Pay. The ultimate goal of these payment systems is to

Rita borrows $20,000 from the U.S. Department of Education to help pay for her education at State University. She signs a note payable to DOE for the amount of the loan plus interest. The loan may be discharged if

Businesses have been required to switch to digital invoices in

A digital invoice is

Fleet Feet, an online travel company, buys blocks of rooms from Grande Hotel, a hotel in Harbor City, at a wholesale rate. Fleet Feet resells the rooms to consumers at a retail rate. One recent effort by cities to collect taxes from e-commerce has focused on

Hailey, a U.S. citizen, buys John Lennon's piano from Kent, who is in Great Britain. Particularly useful to Hailey, who would prefer to conduct this deal as a secured transaction, is

Fred buys a car from Gina online. To assure that the car is delivered in the condition promised, Fred

Deb defaults on her debt to EZ Credit Company. The lender obtains a judgment against Deb, who quickly moves to another state. The judgment is domesticated in Deb's new location. If the lifespan of the judgment lapses before it can be collected, the domestication