Chapter 7 - Chapter 7 Review Questions True/False 1 2 3 4 5...

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Chapter 7 Review Questions True/False 1. A personal unsecured consumer loan is most frequently used to help borrowers straighten out a critical financial situation. 2. The student loans with the lowest rates of interest and the best loan terms are the PLUS loans. 3. Installment loans are typically repaid in weekly payments. 4. Variable rate loans are desirable if interest rates are expected to rise in the future. 5. Most loans made by consumer finance companies are for smaller amounts and are made to higher risk borrowers. 6. Savings and loan associations are allowed to make loans for things like cars. 7. Life insurance loans usually must be repaid within two to three years. 8. If a loan has a prepayment penalty, there will be an additional cost to repay a loan early. 9. An installment purchase agreement typically includes a sales contract, a security agreement, a note, and an insurance agreement. 10. The add-on method is more expensive than the simple interest method when stated rates of interest are identical. Multiple Choice 1. Long-term financial goals often depend on borrowing funds. The type of credit that does not fulfill the long-term goal achievement is
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Chapter 7 - Chapter 7 Review Questions True/False 1 2 3 4 5...

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