7
QuizMultiple Choice

3.7 How Credit Works

Question 7 • TX-Personal Financial Literacy and Economics

APR on a loan may be adjusted based on a borrower’s

Answer
A
offered collateral.
B
credit history.
C
loan fees.
D
scheduled repayments.

Explanation

A lender may adjust the annual percentage rate (APR) to reflect how likely the borrower is to repay the loan. Credit history gives the lender evidence of past borrowing and repayment behavior, so it can affect the rate offered. Thus, the correct choice is credit history.

AI-written and checked against the verified answer.

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