Podcast
Play an AI-generated podcast conversation about this lesson
Questions and Answers
Which of the following is a feature of a loan?
Which of the following is a feature of a loan?
- Credit score
- Principal (correct)
- Interest rate
- Loan application
What is the difference between a secured loan and an unsecured loan?
What is the difference between a secured loan and an unsecured loan?
- Secured loans require collateral, while unsecured loans do not require collateral. (correct)
- Secured loans have shorter terms, while unsecured loans have longer terms.
- Secured loans are reported to credit bureaus, while unsecured loans are not reported.
- Secured loans have higher interest rates, while unsecured loans have lower interest rates.
What is the difference between a fixed rate and a variable rate loan?
What is the difference between a fixed rate and a variable rate loan?
- A fixed rate loan has a lower interest rate than a variable rate loan.
- A fixed rate loan does not change during the length of the loan, while a variable rate loan can change. (correct)
- A fixed rate loan can change during the length of the loan, while a variable rate loan does not change.
- A fixed rate loan has a longer term than a variable rate loan.
Which of the following is true about the Annual Percentage Rate (APR)?
Which of the following is true about the Annual Percentage Rate (APR)?
Signup and view all the answers
What does compound frequency represent?
What does compound frequency represent?
Signup and view all the answers
What happens to the interest portion and principal portion of a payment in an amortized loan?
What happens to the interest portion and principal portion of a payment in an amortized loan?
Signup and view all the answers
What is a payday loan?
What is a payday loan?
Signup and view all the answers
