Credit and Loans

Question 1

Which best describes a way people can use personal loans?

Revolt · Accepted Answer

to pay for college

Question 2

Which describes an example of using unsecured credit?

Revolt · Accepted Answer

Someone buys new gutters for a home with a credit card.

Question 3

What is the compound interest on a three-year, $100.00 loan at a 10 percent annual interest rate?

Revolt · Accepted Answer

$33.10

Question 4

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 5

[BLANK]

Revolt · Accepted Answer

good credit

Question 6

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 7

In determining whether to issue a loan, banks are not allowed to ask about an applicant’s

Revolt · Accepted Answer

country of origin.

Question 8

What best determines whether a borrower’s interest rate on an adjustable rate loan goes up or down?

Revolt · Accepted Answer

a market's condition

Question 9

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

Revolt · Accepted Answer

a credit card.

Question 10

Which describes the difference between simple and compound interest?

Revolt · Accepted Answer

Simple interest is paid on the principal, while compound interest is paid on the principal and interest accrued.

Credit and Loans Answers

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