Ch. 11 Personal Loans and Purchasing decisions

Students applying for financial aid to attend college usually need to

• obtain a transcript

• complete a Free Application for Federal Student Aid (FAFSA) form

• write an essay

• send a credit report from one of the three credit reporting agencies

Which of the following would be considered an asset?

• credit card account

• car loan

• checking account

• student loan

When applying for a loan, borrowers will probably need to provide information regarding their

• work experience

• health record

• financial plan

• assets

A loan can be denied by a lender because a person's

• health

• credit history

• education

• gender

What type of financial aid needs to be repaid?

• loan

• grant

• scholarship

• work-study

which of the following individuals has financial problems?

• A person who is borrowing money to buy a house

• a person who has a loan for college

• a person who uses a credit card to make most purchases

• a person who is unable to pay his rent

The rate imposed by the lender for the borrower to pay on a loan is known as

• money market rate (MMR)

• effective annual rate (EAR)

• annual percentage rate (APR)

• debit card rate (DCR)

The portion of an item's cost that a consumer pays up front is called the

• liability

• loan amount

• down payment

• principal

Sometimes a creditor may ask for a _________ to sign loan documents. This person promises to repay the loan if the borrower defaults

• benficiary

• cosigner

• payee

• buyer

Personal loans are typically used for large purchases such as

• cars

• motorcycles

• boats

• all of the above