Credit and Loans

Question 1

Which statement is true of both mortgages and auto loans?

Revolt · Accepted Answer

They are secured loans and generally require a down payment.

Question 2

The simple interest on a loan of $200 at 10 percent interest per year is

Revolt · Accepted Answer

$20 per year until the loan is paid off.

Question 3

A credit score is based in part on

Revolt · Accepted Answer

payment history and total debt.

Question 4

Read the scenario.Jay and Laura have been dreaming of purchasing their first home together. They've been diligently saving and have managed to accumulate a significant sum for a down payment.How does their decision to make a larger down payment benefit their financial situation as they purchase a home?

Revolt · Accepted Answer

It decreases their monthly payment.

Question 5

An example of secured credit is a

Revolt · Accepted Answer

mortgage.

Question 6

Consumers who pay more than the minimum payment on credit cards

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pay less interest in the long run.

Question 7

A way to build good credit is

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paying bills when they are due.

Question 8

Read the scenario.Casey has been saving for a new car and is ready to make a purchase. Having a substantial amount to put down as a down payment, Casey approaches the car dealership. The salesperson and the loan officer view Casey's willingness to make a high down payment positively.Why would Casey be considered a lower risk by the lender for planning to make a high down payment?

Revolt · Accepted Answer

It shows that Casey is committed to paying off the loan.

Question 9

The chart shows a range of credit scores.

Revolt · Accepted Answer

find it hard to get a loan.

Credit and Loans Answers

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