FHCE 3200 UPDATED ACTUAL Exam
Questions and CORECT Answers
mainstream lenders - CORRECT ANSWER banks, credit unions, auto manufactured
financing, credit card issuers, merchant credit cards
alternative lenders - CORRECT ANSWER check cashers, payday lenders, title loans, pawn
shops, seller
payday loans - CORRECT ANSWER short term loan designed to be repaid within a few
weeks when the borrower receives the paycheck
pawn shops and title loans - CORRECT ANSWER base their loan on the value of collateral
how to avoid expensive loans - CORRECT ANSWER Have an emergency fund - save
between $1,000 - $2,000
Borrow the money from family or friends
Obtain a loan from a bank, credit union, or other mainstream financial institution
Work more hours to increase pay
Sell something of value
trust in lending act - CORRECT ANSWER federal law that protected consumers who borrow
money
personal loans - CORRECT ANSWER small dollar debt the can be used to pay bills or make
purchases
,Options for borrowing money - CORRECT ANSWER cash advances, ask, request, contact
cash advance - CORRECT ANSWER borrowing cash on your credit card
secured loan - CORRECT ANSWER backed by collateral
-property than can be taken by the lending institution if the borrower fails to repay the loan
unsecured loans - CORRECT ANSWER not backed by collateral
-signature loans
-considered to be riskier than secured loans and therefore charge a higher interest rate
installment loan - CORRECT ANSWER the borrower receives the full amount of the loan
upfront in a single lump sum
-fixed interest rate
-payback period fixed
-1-5 years
line of credit - CORRECT ANSWER similar to credit cards allowing the borrower to
maintain a revolving balance month to month
deposit advance - CORRECT ANSWER short term loan that is automatically repaid when the
next qualifying electronic deposit is made
-35 days
-
peer 2 peer lending - CORRECT ANSWER allows a borrower and lender to come together
via the internet
-18 years and older
, -lending score
-1,000-5,000
-650 credit minimum
options to pay for college - CORRECT ANSWER -work
-scholarships
-savings
-federal student loans
-family contributions
federal financial aid - CORRECT ANSWER application
-via FAFSA
-award from school
-repayment to lender
direct subsidized loans - CORRECT ANSWER federal student loans made to undergrads who
demonstrate financial loan
-if enrolled more than half time
direct unsubsidized loans - CORRECT ANSWER interest is calculated on the loan balance
until payments begin - 6 months after graduation and continues throughout repayment
direct PLUS loan - CORRECT ANSWER available to graduate and professional students and
parents
-loan balance until student is no longer attending school
direct consolidation loans - CORRECT ANSWER allow students to easily consolidate all
federal student loans into one easy to manage loan
Questions and CORECT Answers
mainstream lenders - CORRECT ANSWER banks, credit unions, auto manufactured
financing, credit card issuers, merchant credit cards
alternative lenders - CORRECT ANSWER check cashers, payday lenders, title loans, pawn
shops, seller
payday loans - CORRECT ANSWER short term loan designed to be repaid within a few
weeks when the borrower receives the paycheck
pawn shops and title loans - CORRECT ANSWER base their loan on the value of collateral
how to avoid expensive loans - CORRECT ANSWER Have an emergency fund - save
between $1,000 - $2,000
Borrow the money from family or friends
Obtain a loan from a bank, credit union, or other mainstream financial institution
Work more hours to increase pay
Sell something of value
trust in lending act - CORRECT ANSWER federal law that protected consumers who borrow
money
personal loans - CORRECT ANSWER small dollar debt the can be used to pay bills or make
purchases
,Options for borrowing money - CORRECT ANSWER cash advances, ask, request, contact
cash advance - CORRECT ANSWER borrowing cash on your credit card
secured loan - CORRECT ANSWER backed by collateral
-property than can be taken by the lending institution if the borrower fails to repay the loan
unsecured loans - CORRECT ANSWER not backed by collateral
-signature loans
-considered to be riskier than secured loans and therefore charge a higher interest rate
installment loan - CORRECT ANSWER the borrower receives the full amount of the loan
upfront in a single lump sum
-fixed interest rate
-payback period fixed
-1-5 years
line of credit - CORRECT ANSWER similar to credit cards allowing the borrower to
maintain a revolving balance month to month
deposit advance - CORRECT ANSWER short term loan that is automatically repaid when the
next qualifying electronic deposit is made
-35 days
-
peer 2 peer lending - CORRECT ANSWER allows a borrower and lender to come together
via the internet
-18 years and older
, -lending score
-1,000-5,000
-650 credit minimum
options to pay for college - CORRECT ANSWER -work
-scholarships
-savings
-federal student loans
-family contributions
federal financial aid - CORRECT ANSWER application
-via FAFSA
-award from school
-repayment to lender
direct subsidized loans - CORRECT ANSWER federal student loans made to undergrads who
demonstrate financial loan
-if enrolled more than half time
direct unsubsidized loans - CORRECT ANSWER interest is calculated on the loan balance
until payments begin - 6 months after graduation and continues throughout repayment
direct PLUS loan - CORRECT ANSWER available to graduate and professional students and
parents
-loan balance until student is no longer attending school
direct consolidation loans - CORRECT ANSWER allow students to easily consolidate all
federal student loans into one easy to manage loan
