14
QuizMultiple Choice

Credit and Loans — Test

Question 14 • Personal Finance

People most likely need to take out a mortgage when they

Answer
A
have legal problems.
B
have bad credit.
C
are making a large purchase.
D
are spending less than $1,000.

Explanation

A mortgage is a loan used to pay for a major purchase, most commonly a home. Because homes cost a large amount, buyers often borrow money and repay it over time. Legal problems, bad credit, or spending less than $1,000 do not by themselves mean someone needs a mortgage.

AI-written and checked against the verified answer.

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