Managing Financial Information

Question 1

Gavin has a credit card but keeps it stashed away in a safe, so he does not use it. How is it still an advantage for him to have it?

Revolt · Accepted Answer

It could be useful in an emergency.

Question 2

A down payment is usually what percentage of the asking price of a home?

Revolt · Accepted Answer

5–20 percent

Question 3

Levi applies for a number of credit cards. Soon he has large balances on all of them and makes only the minimum payments. How could this affect him?

Revolt · Accepted Answer

Lenders could avoid giving him more credit.

Question 4

Money for a personal loan is usually issued to the borrower

Revolt · Accepted Answer

in one lump sum.

Question 5

most likely

Revolt · Accepted Answer

must repay the loan in five to ten years.

Question 6

The charts show the effect of an interest rate adjustment on an adjustable-rate mortgage.The change in interest rate shown in the charts resulted in

Revolt · Accepted Answer

a higher monthly payment.

Question 7

A credit score tells a lender how

Revolt · Accepted Answer

trustworthy someone is as a borrower.

Question 8

Jessica is trying to get a credit card. She has a credit score of 790. How is Jessica’s lender likely to view this credit score?

Revolt · Accepted Answer

Jessica is low risk and will pay her outstanding balances on time.

Question 9

When applying for credit, what information should borrowers research? Check all that apply.feesgovernment regulationsinterest ratesintroductory ratesrequired repayments

Revolt · Accepted Answer

fees; interest rates; introductory rates

Question 10

Seb pays the $5,000 cost for his car all at once. Carolina also buys a $5,000 car, but she uses a secured line of credit paid over a period of 3 years. What is the advantage of Carolina’s strategy?

Revolt · Accepted Answer

smaller payments

Managing Financial Information Answers

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