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Personal Finance Courses:
Predatory Lending
Test your knowledge
Choose wisely. There is only one correct answer to each question.
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1.
What are some things that a payday lender could do if you did not pay back a payday loan you took out?
Choose wisely. There is only one correct answer.
Turn your loan over to a debt collector
Sue you
Repossess your property that you put up as collateral
All of the above
All of the above. All of these are possibilities.
2.
When you take out a payday loan, how long is the grace period for paying it back?
Choose wisely. There is only one correct answer.
Two weeks
One month
Two months
There is no grace period.
There is no grace period. Payday loans do not offer grace periods; you must pay them back on your payday or you will be charged late fees.
3.
To qualify for a payday loan, what must your income be?
Choose wisely. There is only one correct answer.
$100 per week
$300 per week
There is no minimum.
There is no minimum. You just need to earn sufficient money to cover the loan.
4.
As a general rule, which of the following will charge the LEAST amount of interest if you take out a loan?
Choose wisely. There is only one correct answer.
A payday lender
A credit card
A credit card cash advance
A loan from a bank or credit union
A loan from a bank or credit union. As a rule, these loans have the lowest interest rates and charge the least amount of interest.
5.
If you put up a guitar at a pawnshop in return for a loan, what usually happens if you can't pay the loan back?
Choose wisely. There is only one correct answer.
The pawnshop can keep the guitar.
Nothing
You get an extra week to pay off the loan.
None of the above
The pawnshop can keep the guitar. This is the general rule for how these loans work.
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