Podcast
Questions and Answers
What should be prioritized over borrowing when unable to meet repayments?
What should be prioritized over borrowing when unable to meet repayments?
- Taking a loan with higher interest
- Ignoring the repayment schedule
- Adjusting the budget to find available funds (correct)
- Borrowing from multiple lenders
Why is it important to compare interest rates when borrowing?
Why is it important to compare interest rates when borrowing?
- Interest rates have no effect on loan repayment amounts
- It helps in finding the least expensive loan option (correct)
- To determine the most lenient repayment terms
- Lenders will all offer the same rates
What is a characteristic of a fixed APR?
What is a characteristic of a fixed APR?
- It can be negotiated by the borrower
- It includes hidden fees only
- It remains constant throughout the loan term (correct)
- It varies based on the loan amount
What does the Annual Percentage Rate (APR) help with?
What does the Annual Percentage Rate (APR) help with?
Which statement is correct regarding adults aged 18 and older concerning borrowing?
Which statement is correct regarding adults aged 18 and older concerning borrowing?
Flashcards
Borrowing Money
Borrowing Money
Getting money from a lender, typically with the promise to repay with interest.
APR (Annual Percentage Rate)
APR (Annual Percentage Rate)
The total cost of borrowing, including interest and fees, expressed as a yearly percentage.
Fixed APR
Fixed APR
A loan interest rate that doesn't change throughout the loan term.
Budgeting for Loans
Budgeting for Loans
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Credit
Credit
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