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

What is a benefit of obtaining a personal loan?

Revolt · Accepted Answer

getting money with special repayment terms

Question 3

Consumers who pay more than the minimum payment on credit cards

Revolt · Accepted Answer

pay less interest in the long run.

Question 4

Which describes an example of using unsecured credit?

Revolt · Accepted Answer

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

Question 5

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

Revolt · Accepted Answer

a credit card.

Question 6

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

Revolt · Accepted Answer

country of origin.

Question 7

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 8

principal borrowedoutstanding balanceprojected balance

Revolt · Accepted Answer

principal borrowed

Question 9

The chart shows a range of credit scores.

Revolt · Accepted Answer

find it hard to get a loan.

Question 10

A credit score is based in part on

Revolt · Accepted Answer

payment history and total debt.

Credit and Loans Answers