Question: What is collateral?

A type of unsecured credit

Property given as security for a loan

Funds borrowed to buy property

A payment to reduce overall debt

Answer: Property given as security for a loan

Question: A down payment is an upfront payment of ___________ to make a purchase

Answer: cash

Question: Which types of credit are most similar to each other?

Auto loan and mortgage loan

Auto loan and personal loan

Credit card and mortgage loan

Mortgage loan and personal loan

Answer: Auto loan and mortgage loan

Question: Lenders are prohibited from

Considering borrowers’ race, sex, and national origin

Explaining to borrowers why their application was rejected

Using borrowers’ information in a responsible manner

Considering borrowers’ sources of income other than salary

Answer: Considering borrowers’ race, sex, and national origin

Question: What consequences do borrowers face if they miss many payments? Check all that apply

Difficulty getting loans

Garnished wages

Elimination of all credit

Lost collateral

Compounded late fees

Answer: Difficulty getting loans

Elimination of all credit

Lost collateral

Compounded late fees