Tips and Tools For Financial Success - Newton Free Library
Tips and Tools For Financial Success - Newton Free Library
Tips and Tools For Financial Success - Newton Free Library
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Borrowing Basics Quiz<br />
1. Which of the following places offer car loans?<br />
a. Finance companies<br />
b. Credit unions & Thrifts<br />
c. Car dealerships <strong>and</strong> banks<br />
d. All of the above<br />
2. Which of the following might be a condition to obtain a low interest rate from a dealer?<br />
a. Paying a participation fee<br />
b. Making a large down payment<br />
c. Having an excellent credit history<br />
d. All of the above<br />
3. The formula used to calculate home equity is:<br />
a. Equity = the current market value of the home plus the outst<strong>and</strong>ing debt<br />
b. Equity = the current market value of the home minus the outst<strong>and</strong>ing debt<br />
c. Equity = the price you paid for the home<br />
d. None of the above<br />
4. The 4 Cs of loan decision making are:<br />
a. Cash, Credit, Car type, <strong>and</strong> Convenience<br />
b. Consumer, Credit card, Co-signer, <strong>and</strong> Credit Union<br />
c. Credit History, Customer Service, Compounding, <strong>and</strong> Cash Deposit<br />
d. Capacity, Capital, Character, Collateral<br />
5. Which of the following items are not usually purchased with an installment loan?<br />
a. Cars<br />
b. Food <strong>and</strong> Beverages<br />
c. Furniture<br />
d. Household appliances <strong>and</strong> computers<br />
6. Security that you provide a lender by pledging an asset that you own is called:<br />
a. APR<br />
b. Compensation<br />
c. Collateral<br />
d. Installment loan<br />
7. Making equal payments over a period of time is an example of:<br />
a. An adjustable rate mortgage<br />
b. A fixed-rate installment loan<br />
c. A home equity line of credit<br />
d. None of the above<br />
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