Credit and Loans — Test

Question 1

The depreciation component of a lease payment is _____.

Revolt · Accepted Answer

to compensate the leasing company for the monetary value the car loses during your lease

Question 2

The type of credit people are most likely to use for small purchases during their lifetime is

Revolt · Accepted Answer

a credit card.

Question 3

Which is most likely to happen to consumers with good credit? Choose three correct answers.

Revolt · Accepted Answer

They can use credit in emergencies.; They can be approved for loans.; They can receive lower interest rates.

Question 4

Which of these statements explains the difference between a lease and a loan?

Revolt · Accepted Answer

At the end of a loan the car belongs to you, but at the end of a lease, the car still belongs to the lease company.

Question 5

Which best describes a way people can use personal loans?

Revolt · Accepted Answer

to pay for college

Credit and Loans — Test Answers