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

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 3

good credita bank accounttax returns

Revolt · Accepted Answer

good credit

Question 4

A credit score is based in part on

Revolt · Accepted Answer

payment history and total debt.

Question 5

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

Revolt · Accepted Answer

country of origin.

Question 6

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

Revolt · Accepted Answer

a credit card.

Question 7

credit cardmortgagetaxbond

Revolt · Accepted Answer

mortgage

Question 8

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.

Question 9

An example of secured credit is a

Revolt · Accepted Answer

mortgage.

Question 10

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.

Credit and Loans Answers

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