What is a "secured loan" and what are its key characteristics?

• A loan that requires collateral and has lower interest rates

• A loan that does not require collateral and has higher interest rates

• A loan that is only available to businesses

• A loan that is only available to individuals

What does FDIC stand for?

• Federal Deposit Insurance Corporation

• Federal Department of Insurance and Commerce

• Financial Deposit and Investment Corporation

• Federal Division of Insurance and Credit

What does NCUA stand for?

• National Credit Union Administration

• National Credit Union Association

• National Cooperative Union Association

• National Cooperative Union Administration

What does "collateral" mean in the context of borrowing?

• A type of loan

• An asset pledged for a loan

• A financial institution

• A repayment schedule

Define "APR" and discuss how it influences the cost of borrowing.

• APR stands for Annual Percentage Rate and it represents the annual cost of borrowing including interest and fees.

• APR stands for Annual Payment Rate and it only includes the interest rate on a loan.

• APR stands for Annual Percentage Rate and it only includes the fees associated with a loan.

• APR stands for Annual Payment Rate and it represents the monthly cost of borrowing.

What is a "credit score," and how is it calculated?

• A numerical expression based on a level analysis of a person's credit files, representing the creditworthiness of an individual.

• A measure of the amount of money a person has in their bank account.

• A score given to a person based on their annual income.

• A rating given to a person based on their spending habits.

What is an "installment loan"?

• A loan that is repaid over time with a set number of scheduled payments

• A loan that is repaid in a single lump sum

• A loan that does not require any repayment

• A loan that is only available to businesses

What is "predatory lending," and how can consumers protect themselves from it?

• A type of lending that imposes unfair or abusive loan terms on borrowers.

• A government program to help consumers with loans.

• A method of lending that offers the lowest interest rates.

• A type of lending that is beneficial for all consumers.

What is a "line of credit" and what are its advantages and disadvantages?

• A line of credit is a fixed loan amount with a set repayment schedule, offering stability but less flexibility.

• A line of credit is a flexible loan arrangement allowing borrowers to access funds as needed, offering flexibility but potentially higher interest rates.

• A line of credit is a type of investment account that provides guaranteed returns, offering high security but low liquidity.

• A line of credit is a savings account with a fixed interest rate, offering high returns but limited access to funds.

How does a line of credit differ from other forms of borrowing?

• A line of credit allows for flexible borrowing up to a limit, unlike a fixed loan.

• A line of credit requires full repayment at the end of the term, unlike a credit card.

• A line of credit has a fixed interest rate, unlike a mortgage.

• A line of credit is only available to businesses, unlike personal loans.