How Credit Works

Question 1

Question 1

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The principal of loan A is .: $15,000; Which loan has a higher annual percentage rate?: loan B; What will be the total repayment for loan A, including interest?: $22,367.32; What will be the total repayment for loan B, including interest?: $19,857.02

Question 2

Zachary’s student loans are an example of what type of loan?

Revolt · Accepted Answer

D: unsecured loan

Question 3

personal loan✔ mortgage loanunsecured loan

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C: unsecured loan

Question 4

What will most likely happen if Tony continues to make late payments? Check all that apply.

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A: The bank might take his car.; B: The bank will charge late fees.; C: His credit history might be damaged.

Question 5

$7,367.32$10,000✔ $15,000

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Selection 1: $15,000

Question 6

Which statement best compares these two loans?

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C: The interest is about half the principal for A and almost equal to the principal for B.

Question 7

What should a consumer review and consider when shopping for a credit card? Check all that apply.

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B: The initial fees to open the account; C: The fees charged for late payments; E: The annual percentage rate for the card; F: The Truth in Lending Act disclosure

Question 8

Which regulations do credit card companies have to follow? Check all that apply.They have to make all credit terms clear to the borrower.They have to accept any borrower who applies for a credit card.They are not allowed to change annual fees or interest rates.They have to obtain a borrower’s information in a responsible way.They cannot discriminate based on race, gender, or national origin.They have to avoid abusive marketing practices and protect privacy.

Revolt · Accepted Answer

A: They have to make all credit terms clear to the borrower.; D: They have to obtain a borrower’s information in a responsible way.; E: They cannot discriminate based on race, gender, or national origin.; F: They have to avoid abusive marketing practices and protect privacy.

Question 9

creditprincipal✔ collateral

Revolt · Accepted Answer

C: ✔ collateral

Question 10

assetrepayment✔ down payment

Revolt · Accepted Answer

C: ✔ down payment

How Credit Works Answers

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