Personal Lending

Which type of personal loan requires collateral?

• a) Unsecured Personal Loans
• b) Secured Personal Loans
• c) Debt Consolidation Loans
• d) Payday Loans

What is the primary purpose of debt consolidation loans?

• a) Combining multiple debts into a single loan
• b) Providing quick access to cash
• c) Offering flexible borrowing options
• d) Allowing individuals to access funds up to a certain limit

Which type of loan is intended for short-term borrowing and typically repaid by the borrower's next paycheck?

• a) Unsecured Personal Loans
• b) Secured Personal Loans
• c) Debt Consolidation Loans
• d) Payday Loans

What is a line of credit?

• a) A loan specifically designed for individuals with limited credit history
• b) A loan that requires collateral
• c) A flexible borrowing option with a predetermined credit limit
• d) A loan obtained through P2P lending platforms

What is the main characteristic of P2P lending?

• a) Direct connection between borrowers and individual lenders or investors
• b) Collateral requirement for loans
• c) Government guarantee for the loan
• d) Lower interest rates compared to traditional banking institutions

What is the purpose of co-signed loans?

• a) To obtain a loan with lower interest rates
• b) To consolidate multiple debts into a single loan
• c) To secure a loan without collateral
• d) To help individuals with limited credit history or lower credit scores qualify for loans

What is the most common type of credit card?

• a) Rewards Credit Cards
• b) Cashback Credit Cards
• c) Standard/Traditional Credit Cards
• d) Travel Credit Cards

Which type of credit card offers incentives for making purchases?

• a) Standard/Traditional Credit Cards
• b) Cashback Credit Cards
• c) Travel Credit Cards
• d) Balance Transfer Credit Cards

What is the purpose of balance transfer credit cards?

• a) To earn cash rewards on purchases
• b) To consolidate multiple credit card balances
• c) To earn travel rewards
• d) To provide a revolving line of credit

Which type of credit card is designed for college students or young adults?

• a) Rewards Credit Cards
• b) Travel Credit Cards
• c) Student Credit Cards
• d) Secured Credit Cards