8
practice testMultiple Choice

Practice Test

Question 8 • Personal Finance

Missing one payment may cause borrowers to

Answer
A
be charged a late fee.
B
need a down payment.
C
lose their collateral.
D
need a credit report.

Explanation

A missed loan payment can trigger a late fee, depending on the loan terms and any grace period. Missing just one payment does not usually mean the borrower immediately loses collateral; that typically requires a more serious or prolonged failure to repay. The correct choice is “be charged a late fee.”

AI-written and checked against the verified answer.

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