Course Catalog
>
Personal Finance
>
Courses
Personal Finance Courses:
Predatory Lending
Test your knowledge
Choose wisely. There is only one correct answer to each question.
0%
Keep studying!
Review your answers below to learn more.
1.
Predatory lending can be identified by _______.
Choose wisely. There is only one correct answer.
Its high costs
Its low costs
Its high costs. Predatory lending involves a business charging higher-than-normal costs of various kinds.
2.
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.
3.
A payday lender does not legally have to identify the fees charged to your payday loan.
Choose wisely. There is only one correct answer.
True
False
False. By law, a lender must spell out all fees to you in your contract.
4.
The interest rates of payday loans are very high.
Choose wisely. There is only one correct answer.
True
False
True. Payday loans have average annual interest rates of 500 percent--or more.
5.
How long do most payday loans last?
Choose wisely. There is only one correct answer.
A year
A month
Two months
Two weeks
Two weeks. Most payday loans last about the length of a pay period, which is two weeks.
Submit
DONE