2
QuizMultiple Choice

How Credit Works — Quiz

Question 2 • Personal Finance

APR on a loan may be adjusted based on a borrower’s

Answer
A
credit history.
B
offered collateral.
C
loan fees.
D
scheduled repayments.

Explanation

A lender may adjust a loan’s APR based on the borrower’s credit history. A stronger credit history generally signals lower risk and may qualify the borrower for a lower APR, while a weaker history may lead to a higher one. The correct choice is credit history.

AI-written and checked against the verified answer.

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