Using Credit 2

What is the principal amount for the new boat?

• $50,000

• $45,000

• $5,000

• $55,000

What should you know about the type of loan you are receiving?

• The color of the bank

• The prime interest rate of the loan

• Whether it is tied to collateral

• The bank manager's name

What is collateral in terms of a loan?

• A type of currency

• Security pledged for repayment of a loan

• A bank account

• A financial advisor

What should you do if you are unsure about your loan terms?

• Ignore it

• Ask for clarification

• Guess the terms

• Wait for a letter

Which type of loan relies solely on credit history and income to qualify?

• Secured loan

• Federally funded student loan

• Private student loan

• Unsecured loan

Which loan type offers better repayment terms due to federal funding?

• Private student loan

• Secured loan

• Federally funded student loan

• Unsecured loan

What is the primary factor for qualifying for an unsecured loan?

• Collateral

• Credit history and income

• Federal funding

• Loan amount

How much interest is paid in the first month for good credit?

• $30.00

• $577.14

• $535.64

• $41.50

What is the new balance on the statement date?

• 4,739.90

• 5,000.00

• 236.84

• 250.00

What is the periodic rate for purchases?

• 1.43%

• 17.00%

• 20.00%

• 5.00%