Loans 101 Quiz

What is the definition of a Big Purchase?

• A designer handbag

• A major purchase like a house or a car

• The cost of going to a concert

• A pair of Balenciaga Shoes

What is a Will & Testament?

• It's when someone gives you access to their bank account before they die.

• It's a verse in the ancient texts of the bible.

• It's a verbal agreement naming beneficiaries before dying.

• It's a legal document giving instructions about money and possessions.

What's an example of tax records?

• dental records

• vehicle registration

• auto insurance proof

• tax returns

When signing a Lease Agreement, what exactly are you doing?

• You're agreeing to buy something.

• You're hiring an attorney.

• You're signing a contract of rental.

• You're buying a time share.

What does it mean to default on a loan?

• Failure to repay a loan

• Paying off a loan in full

• Proving reliability to pay loans on time

• Showing the bank you should be approved for a loan

What is collateral?

• It's damage done to something other than the primary military target

• Something on the periphery of a central focus

• It's an item of value that's forfeited in the event of default on a loan.

• Additional but subordinate; secondary

Where are important files or records best stored?

• Under the bed

• Between the box spring and mattress

• At your neighbor's house

• In a fireproof safe

How can taking out a loan help build credit?

• Buying a fancy car always impresses people, especially creditors

• The ability to make loan payments on time proves reliability to financial institutions

• A loan can fund a credit-building wardrobe

• Getting a loan builds stature among those who earn money

As a general rule, never take out any debt unless what conditions exist?

• only in the summer because it's the start of the financial season

• unless you are sure you will be able to pay it back

• unless you are earning more than $100,000 a year

• only when your household has two or more people earning income

What is often used as collateral when making a large purchase?

• your bank account

• your expensive jewelry

• the item itself

• your parent's money