Credit and Debt

Using a loan could help with the purchase of which of the following?

• a) A new television

• b) A dream wedding

• c) A house

• d) Airline tickets to your dream vacation

When are loans a good option to use?

• a) To pay for airline tickets to your dream vacation

• b) When paying for higher education

• c) To buy that new television

• d) For a dream wedding

What should you NOT use a loan to purchase?

• a) A house

• b) Tuition for higher education

• c) Airline tickets to your dream vacation

• d) A car

Which item is important to consider when selecting a credit card?

• a) Annual Percentage Rate (APR)

• b) Fees

• c) The look of the credit card

• d) Both APR and fees

Which of these items is NOT important to consider when selecting a credit card?

• a) Annual Percentage Rate (APR)

• b) The look of the credit card

• c) Credit limit

• d) Penalties and Fees

Annual Percentage Rate (APR), credit limit, and penalties and fees are important to consider when _____.

• a) Choosing a financial advisor

• b) Choosing a credit card

• c) Looking at your credit score

• d) Selecting a financial institution

What is NOT a benefit of having a good credit score?

• a) When you need a loan, you'll have more loan offers to pick from.

• b) You'll get better interest rates on your loans.

• c) It will be easier to get an apartment.

• d) You'll get accepted to better education institutions.

What is a benefit of having a good credit score?

• a) Loan sharks will be less likely to bother you.

• b) You'll get accepted to better education institutions.

• c) You'll get more job offers.

• d) When you need a loan, you'll have more loan offers to pick from.

Secured loans are less costly than unsecured loans because _________.

• a) They usually have a lower interest rate.

• b) They require collateral.

• c) They are less risky for the financial institution.

• d) All of these are true.

The cost of a secured loan is typically lower than the cost of an unsecured loan because _______.

• a) it requires collateral.

• b) the loan takes longer to get.

• c) it has high interest rates.

• d) your parents will make sure you pay it back.