How Credit Works

Question 1

What are the characteristics of an annual percentage rate? Check all that apply.It can change over time for certain kinds of loans.It is the interest charged each year for a loan.It requires the borrower to pay all the principal at once.It can be reduced to reflect the borrower’s credit history.It has little impact on the amount the borrower must repay.

Revolt · Accepted Answer

It can change over time for certain kinds of loans.; It is the interest charged each year for a loan.; It can be reduced to reflect the borrower’s credit history.

Question 2

Complete the sentences using the drop-down menus to compare the different types of credits available to borrowers.

Revolt · Accepted Answer

Examples of secured loans are and loans.: auto; Examples of secured loans are and loans.: mortgage; Personal loans can be borrowed from a bank or a financial institution, and loans are borrowed from individuals.: peer-to-peer; Title and payday loans have interest rates while peer-to-peer loans typically have interest rates.: higher; Title and payday loans have interest rates while peer-to-peer loans typically have interest rates.: lower

How Credit Works Answers

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