12
QuizMultiple Choice

Practice Test

Question 12 • Practice Test

Missing one payment may cause borrowers to

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