Final Review #3

Which of the following is an example of a source of credit?

• Grocery store

• Bank

• Utility company

• Insurance agency

What is a key characteristic of payday loans?

• Low interest rates

• Long repayment periods

• Short-term, high-interest borrowing

• Requires collateral

Which of the following is considered a predatory lending practice?

• Offering low interest rates

• Charging excessive fees and interest

• Providing financial education

• Requiring a co-signer

What does a credit score primarily measure?

• Income level

• Creditworthiness

• Age

• Education level

Which of the following is an example of revolving credit?

• Car loan

• Mortgage

• Credit card

• Student loan

Which factor is NOT part of the "Three Cs" of credit?

• Character

• Capacity

• Collateral

• Citizenship

How can you access your credit report?

• By asking your employer

• Through a credit bureau

• By visiting a bank branch

• By calling your insurance company

Which of the following is a benefit of monitoring your credit report regularly?

• Increasing your income

• Detecting errors or fraud

• Lowering your taxes

• Avoiding insurance payments

Which personal event could lead to bankruptcy?

• Winning the lottery

• Job loss

• Getting a promotion

• Saving money

What is the purpose of the Truth in Lending disclosure?

• To hide loan terms

• To inform borrowers about loan costs

• To increase interest rates

• To reduce credit scores