Understanding Borrowing and APR Concepts
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Questions and Answers

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?

  • 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?

  • 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?

    <p>Comparing the costs of different loans</p> Signup and view all the answers

    Which statement is correct regarding adults aged 18 and older concerning borrowing?

    <p>They are legally allowed to borrow from organizations offering credit</p> Signup and view all the answers

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