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Questions and Answers
What is the main purpose of consumer loans?
What is the main purpose of consumer loans?
- To permit buying expensive items (correct)
- To provide financial flexibility only
- To cover small expenses
- To repay previous debts
What is a disadvantage of consumer loans?
What is a disadvantage of consumer loans?
- You can repay your debts quickly
- You can use the item while paying for it
- You must provide collateral or security for the loan (correct)
- You can spread payments over a long period of time
What is a personal loan usually obtained for?
What is a personal loan usually obtained for?
- To finance a small purchase
- To finance a large purchase (correct)
- To repay previous debts
- To cover daily expenses
What is included in a loan contract?
What is included in a loan contract?
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What is a benefit of consumer loans?
What is a benefit of consumer loans?
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What happens when the maturity of a loan is longer?
What happens when the maturity of a loan is longer?
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What is the purpose of collateral in a secured loan?
What is the purpose of collateral in a secured loan?
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What aspect of a borrower does the 'Character' component of the 5 Cs of Consumer Borrowing refer to?
What aspect of a borrower does the 'Character' component of the 5 Cs of Consumer Borrowing refer to?
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What type of loan is not backed by collateral?
What type of loan is not backed by collateral?
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What is the purpose of cosigning a loan?
What is the purpose of cosigning a loan?
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