14
QuizMultiple Choice

Personal Loans

Question 14 • 1442 Personal Finance B CA

With respect to a personal loan, the finance charge a borrower pays is _____.

Answer
A
an income tax on the loan
B
the extra money he or she pays in interest
C
usually a one time $20 application processing fee
D
something the borrower can opt out of with good credit

Explanation

A finance charge is the cost of borrowing money. For a personal loan, this includes the interest the borrower pays in addition to repaying the amount borrowed, so the best choice is “the extra money he or she pays in interest.”

AI-written and checked against the verified answer.

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