AnswersPersonal Finance - EL3403Financial Responsibility

Managing Financial Information Answers

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If the loan company does approve Lesley’s loan, what provision is likely to be part of the loan agreement?

A
Lesley will have to meet with a financial adviser.
B
Lesley will be required to submit a monthly credit report.
C
Lesley will have to pay a higher interest rate.
D
Lesley will default on the loan after one late payment.
4

Why is it important to check your credit history? Check all that apply.to track my current debtto determine whether I need a loanto ensure that the information is correctto monitor my credit scoreto decide which bills to payto plan for future investments

A
to track my current debt
B
to determine whether I need a loan
C
to ensure that the information is correct
D
to monitor my credit score
E
to decide which bills to pay
F
to plan for future investments
5

How can Elizabeth most responsibly pay off her bill sooner?

A
by continuing to pay the minimum monthly payment
B
by paying it off with a different credit card
C
by taking out a personal loan from a bank
D
by paying more than the minimum payment each month
6

What steps can Booker take to improve his credit score? Check all that apply.

A
make all of his loan and credit card payments on time
B
apply for more credit cards
C
check his credit history for accuracy
D
avoid making payments on his loans
E
find a second job to improve his income in order to pay off his debt more quickly
7

What effects are Mary and Todd likely to face if they declare bankruptcy? Check all that apply.

A
They will find it hard to get new loans.
B
They will find it easier to buy a home, since their debt will have been eliminated.
C
They will get to keep their cars, but they will not have to make payments.
D
They will have to pay higher interest rates on any new credit cards they obtain.
E
They will have poor credit reports.

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