Question

Help With Consumer Math HW. Connections...

Answer 1

Which item cannot be used to secure a debt?

a. house
b. car
c. record collection *
d. credit card

Which type of debt is secure?

a. mortgage
b. credit card
c. personal line of credit *
d. revolving credit line

Secured debt usually has _____.

a. longer loan terms
b. lower interest rates
c. collateral
d. all of the above *

A _____ is not an example of collateral.

a. checking account
b. house
c. car
d. high-value record collection *

When you agree to pay a car dealer for the use of a new car during a set period of time for a set amount
of money and you have to return it at the end of that period of time, you are _____.

a .buying *
b. renting
c. leasing
d. owning

If you put a down payment on a house of less than 20% of its value, you typically have to pay _____.

PMI
penalty points
mortgage fees*
higher interest rates

The original loan amount is referred to as the ____.

a. principal
b. originating amount
c. loan balance *
d. interest deferred amount

Lenders rely on credit scores to determine _____.

a. risk
b. loan amounts *
c. loan repayment length
d. all terms of a loan

Interest begins accruing the date of the transaction except for _____.

a. mortgages
b. credit card purchases
c. credit card cash advances
d. auto loans*