13
QuizMultiple Choice

Managing Financial Information — Quiz

Question 13 • Personal Finance

Which statement best describes the lender’s viewpoint of William? A car dealership analyzing whether it will loan money to William to buy a new car finds that his credit score is in the "very good” range.

Answer
A
He is a high-risk borrower who qualifies for higher interest rates.
B
He is a low-risk borrower who will struggle to obtain a loan.
C
He is a high-risk borrower who will get multiple loan offers.
D
He is a low-risk borrower who qualifies for lower interest rates.

Explanation

A credit score in the “very good” range suggests William has a strong history of managing credit and is a low-risk borrower. Lenders are generally more willing to lend to low-risk borrowers and may offer them lower interest rates. Therefore, the best choice is “He is a low-risk borrower who qualifies for lower interest rates.”

AI-written and checked against the verified answer.

Previous
Next