Choose wisely. There is only one correct answer to each question.
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1.
Although people who take out payday loans use them for many different purposes, what is the most common use?
Regular living expenses. Most borrowers use payday loans for regular living expenses.
2.
Which of the following best describes how payday loans differ from bank and peer-to-peer (P2P) loans in terms of repayment time?
Payday loans must be repaid within weeks. Banks and P2P platforms let you take much longer to pay loans back.
3.
As a general rule, which of the following will charge the LEAST amount of interest if you take out a loan?
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.
4.
If you are behind on a non-payday loan, why should you talk with the creditors about it?
They would rather work with you than have to sell your loan to a debt collector. If they sell your loan to a debt collector, they will get very little for it. They WANT to work with you rather than see that happen.
5.
All credit cards are a form of predatory lending.
False. Some credit cards have very high fees and other predatory features, but many of them do not.