Unit 1 Test Review Consumer Math B

If your parents are buying a house for $187,500 with a 20% down payment, what is the down payment amount?

• $37,500

• $18,750

• $20,000

• $25,000

Which of the following statements hold true for secured loans? Select all that apply.

• Higher borrowing limits

• Easier approval even with lower credit scores

• Higher interest rates

• Do not require collateral

Which of the following statements hold true for unsecured loans? Select all that apply.

• Approval heavily reliant on credit score

• Reduced risk due to collateral

• Faster and easier approval process

• More accessible for those with low credit

Secured loans are usually for longer periods of time at ______ interest rates.

Some examples of ________ loans are student loans, personal loans, and home improvement loans.

When you pay a monthly payment for a car for a set amount of time, but return it at the end of the set time period, it is called:

• renting

• buying

• owning

• leasing

You will typically need to pay PMI (private mortgage insurance) if you buy a house and do not put a down payment of at least ______ of its value.

• 10%

• 15%

• 20%

• 25%

There is a significant difference in loan interest rates between new and used cars.

• True
• False

Lenders rely on your credit score to determine:

• loan amount

• repayment length

• risk

• all loan terms

Interest begins to accrue from the date of the transaction for all of the following except:

• credit card purchases

• cash advances

• auto loans

• mortgages