1. Priscilla took out a loan for a new car. What is MOST likely to be TRUE about this process?
A. Her credit score is going to decrease dramatically.
B. She will not be able to drive the car until she makes all of her payments.
C. Her payments will change in amount from month to month.
D. The bank will hold the title of the car until her loan is paid off.
2. Siiri invests 10 percent in real estate, 40 percent in mutual funds, 25 percent in government bonds, and 25 percent in stocks. What do Siiri’s investments demonstrate?
A. inflation
B. compounding interest
C. the rate of return
D. asset allocation
3. Dante is making his first purchase using a credit. He asks his friend Tay to educate him about using credit. What is the BEST advice Tay can give him?
A. Be prepared to pay back the original amount and additional interest.
B. Make all of your purchases using credit once you have it.
C. You have as much time as you need to pay back your debts.
D. Credit purchases always cost less than paying with cash.
4. Henry bought a hockey rink. He worries that if something goes wrong with the ice or the equipment that someone might get injured and sue him for negligence. He is going to purchase insurance to protect himself in case this happens. From which type of risk is Henry trying to protect himself?
A. property risk
B. liability risk
C. inheritance risk
D. personal risk
Answers: 2
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1. Priscilla took out a loan for a new car. What is MOST likely to be TRUE about this process?
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