Consumer Responsibilities — Unit test Answers

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21
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Dahlia is explaining to her sister why a positive credit history is important. Which of the following should Dahlia give as reasons for a positive credit history? Check all that apply.

A
A good credit history portrays irresponsibility.
B
A good credit history results in lower interest rates.
C
A good credit history makes borrowing easier.
D
A good credit history results in higher interest rates.
E
A good credit history may result in denial of a rental application.
22
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If the purchase price for a house is $218,500, what is the monthly payment if you put 3.5% down for a 30 year loan with a fixed rate of 6.5%? a. $1,332.73 b. $1,378.19 c. $1,247.54 d. $646.40 Please select the best answer from the choices provided

A
A
B
B
C
C
D
D
23

Which answer choice is not one of the top 10 abusive lending practices?

A
credit cards
B
high fees
C
bait & switch
D
balloon loan
24

Which best describes a way people can use personal loans?

A
to buy a house
B
to buy a car
C
to pay for college
D
to pay for groceries
25

Eli is buying a townhouse that costs $276,650. He has $28,000 in savings and earns $4,475 a month. Eli would like to spend no more than 30% of his income on his mortgage payment. Which loan option would you recommend to Eli?a.30 year FHA, 3.5% down at a fixed rate of 6.5%b.30 year fixed, 5% down at a fixed rate of 6.25%c.30 year fixed, 6.5% down at a fixed rate of 5.75%d.30 year fixed, 10% down at a fixed rate of 5%

A
A
B
B
C
C
D
D

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