How Credit Works

Question 1

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

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unsecured loan

Question 2

✔ secured loanunsecured loan

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✔ secured loan; A loan that is less risky for a lender and is associated with a valuable asset is called a(n) .: secured loan; Rayna needs to get a new set of tires for her car, so she uses her credit card. If she does not pay her bills, there is no asset that can be collected. This means she has received a(n) .: unsecured loan; Jack agrees to take out a mortgage. If he fails to make his payments, the bank may repossess his house. He has received a(n) .: secured loan

Question 3

secured loan✔ unsecured loan

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✔ unsecured loan

Question 4

✔ secured loanunsecured loan

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✔ secured loan

Question 5

Question 122668

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She used in the form of the property to back the loan.: collateral; Lindsay also paid money in advance. This is known as a(n) .: down payment; If Lindsay does not make her loan payments on time, the bank will most likely .: seize her home

Question 6

creditprincipal✔ collateral

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✔ collateral

Question 7

assetrepayment✔ down payment

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✔ down payment

Question 8

✔ seize her homelower the interestask for a down payment

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✔ seize her home

Question 9

Question 122672

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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 10

loan A✔ loan B

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✔ loan B

How Credit Works Answers

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