Question

1. leasing a car is a method of financing where someone

• never pays any interest or fees
• is paying off two or more vehicles at one time
• makes monthly payments on but does not own the vehicle
• does not have to pay any taxes on the vehicle for the first six months

1. there are certain things, like renting a car or booking a hotel room, that you cannot do without having a credit card.

• true
• false

1. which of the following is part of the formula that determines a persons fico score?

• the percent of income that they invest into mutual funds
• their income level during a one - year period
• the dollar amount in their savings funds
• their history of payments made to lenders

1. ____________ require the borrower to put up collateral for the loan.

• unsecured loans
• interest rates
• revolving credit
• secured loans

Explanation:

• For question 9: Leasing a car involves making regular payments to use the vehicle without ownership.
• For question 10: It's possible to rent a car or book a hotel room without a credit card (e.g., using debit card, cash - deposit, etc.).
• For question 11: A person's FICO score is based on factors like payment history, amounts owed, length of credit history, new credit, and credit mix. Payment history to lenders is a key factor.
• For question 12: Secured loans require borrowers to provide collateral to secure the loan.

Answer:

1. Makes monthly payments on but does not own the vehicle
2. False
3. Their history of payments made to lenders
4. Secured loans