15
QuizMultiple Choice

Mortgages and Home Ownership — Unit test

Question 15 • Personal Finance - EL3403

A credit score tells a lender how

Answer
A
quickly someone will repay a loan.
B
much money someone will earn in the future.
C
trustworthy someone is as a lender.
D
trustworthy someone is as a borrower.

Explanation

A credit score summarizes how reliably someone has handled borrowing and repaying money. Lenders use it to judge how trustworthy someone is as a borrower, not to predict future income or exactly how quickly a loan will be repaid.

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