#1
What is the most common type of financing used by individuals to purchase a home?
Personal loans
Mortgages
Credit cards
Payday loans
#2
What does APR stand for in the context of credit and financing?
Annual Percentage Rate
Average Payment Ratio
Adjusted Principal Return
Accrued Personal Risk
#3
What is the purpose of a credit score?
To determine the interest rate on loans
To calculate income tax
To assess the value of assets
To measure the length of credit history
#4
Which of the following is a type of credit card transaction where the cardholder does not need to provide a signature or PIN?
Contactless payment
Cash advance
Balance transfer
Foreign transaction
#5
What is the difference between a secured loan and an unsecured loan?
Interest rate
Loan amount
Collateral requirement
Repayment period
#6
What is the purpose of a grace period on a credit card?
To waive late fees
To extend the due date for payments
To allow interest-free purchases
To increase the credit limit
#7
Which of the following is not a factor considered by lenders when determining creditworthiness?
Credit history
Income level
Height and weight
Debt-to-income ratio
#8
What is the term used for the maximum amount of money a lender is willing to extend to a borrower?
Credit limit
Interest rate
Principal balance
Collateral
#9
What is collateral in the context of lending?
A type of interest rate
A credit reporting agency
Property or asset pledged as security for a loan
A type of loan term
#10
Which of the following is not a component of a credit report?
Payment history
Credit score
Employment history
Credit inquiries
#11
What is the primary function of a cosigner on a loan?
To provide collateral
To guarantee repayment if the borrower defaults
To negotiate the loan terms
To transfer ownership of assets
#12
What is the term used for the interest rate that does not change over the life of a loan?
Variable rate
Floating rate
Fixed rate
Adjustable rate
#13
In finance, what does ROI stand for?
Return on Investment
Rate of Interest
Revenue of Income
Risk of Inflation
#14
What is a debt-to-income ratio used for in the context of evaluating loan applications?
To assess the borrower's ability to repay debts
To determine the length of the loan term
To calculate the interest rate
To evaluate the borrower's credit history
#15
What does LTV stand for in the context of home financing?
Loan Term Variation
Loan-to-Value Ratio
Low-Tier Valuation
Loan Transfer Verification
#16
What is the term used to describe the process of combining multiple loans into a single loan with a lower interest rate?
Loan consolidation
Debt settlement
Credit counseling
Loan modification
#17
Which of the following is a credit reporting agency that collects and maintains credit information on individuals?
S&P Global
TransUnion
Fannie Mae
Freddie Mac