Personal Finance Chapter 4 Exam Questions with Correct Answers

Personal Finance Chapter 4 Exam Questions with Correct Answers If a loan is not repaid, the ____ of the borrower—used as security for the debt—could be sold by the lender. - Answer-collateral A(n) _____ is a number that indicates the likelihood of someone repaying debt. - Answer-credit score A(n) ____ reports on a person's credit history. - Answer-credit bureau The amount of time you have to pay back a loan is called the ____ of the loan. - Answer-term When an item is worth less than what you owe on it, that's called_____ . - Answernegative equity Making fixed payments on a loan over a set period of time is an example of ____ . - Answer-installment credit When an asset loses value over time, that's _____ . - Answer-depreciation When you fail to repay a loan on time, you're referred to as being in _____ . - Answerdefault