Credit and Types of Loans — Test

Question 10 • Financial Math

What is a credit score?

Answer

a comprehensive summary outlining a person’s work experience, including roles, durations, and responsibilities held over time

a numerical expression derived from a detailed analysis of a person's credit history, aimed at evaluating the creditworthiness of that individual

a documented summary of a person’s academic qualifications, including degrees obtained, institutions attended, and honors received

a detailed account reflecting a person's legal and criminal background, summarizing incidents and legal judgments

Explanation

A credit score is a number calculated from information in a person's credit history. Lenders use it to assess how likely the person is to repay borrowed money, which is what “creditworthiness” means. Choice B describes this; the other choices describe a work history, academic record, or legal background.

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