1. If a consumer makes monthly payments of $250 to pay off a car loan, what type of credit is she using?

A) Non-Revolving
B) Revolving
C) Short Term
D) Unsecured

2. Caitlin wants to buy an airline ticket, but she's uncomfortable taking that much cash to the counter at the airport. Instead, she uses her credit card. Which advantage of credit is being demonstrated here?
A) Emergencies
B) Building a credit line
C) Protection of purchases
D) Purchase Power

3. Which is an example of a variable expense category?
A) Car payment
B) Gym membership
C) Birthday gifts
D) Insurance

4. What is a benefit of using a financial tool to track your budget?
A) It provides you discounts for the things you buy most often
B) It gives you a visual of your income and expenses
C) It keeps all of your personal information protected
D) It makes banks more likely to offer you low interest rates

I think
A
C
C
B

1 A

2 D
3 C
4 B

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Yes ad is right a d c b is the awnser

The correct answers are:

1. A) Non-revolving
2. D) Purchase power
3. C) Birthday gifts
4. B) It gives you a visual of your income and expenses.

1. If a consumer makes monthly payments of $250 to pay off a car loan, what type of credit is she using?

A) Non-Revolving
B) Revolving
C) Short Term
D) Unsecured

2. Caitlin wants to buy an airline ticket, but she's uncomfortable taking that much cash to the counter at the airport. Instead, she uses her credit card. Which advantage of credit is being demonstrated here?
A) Emergencies
B) Building a credit line
C) Protection of purchases
D) Purchase Power

3. Which is an example of a variable expense category?
A) Car payment
B) Gym membership
C) Birthday gifts
D) Insurance

4. What is a benefit of using a financial tool to track your budget?
A) It provides you discounts for the things you buy most often
B) It gives you a visual of your income and expenses
C) It keeps all of your personal information protected
D) It makes banks more likely to offer you low interest rates

Great job! Let's go through each question and explanation to check if your answers are correct.

1. If a consumer makes monthly payments of $250 to pay off a car loan, what type of credit is she using?
To determine the type of credit being used, we need to understand the options given:
A) Non-Revolving: Non-revolving credit is characterized by a fixed loan amount and fixed repayment terms.
B) Revolving: Revolving credit allows you to borrow up to a certain limit and make minimum monthly payments, with the option to carry a balance and pay interest.
C) Short Term: This option refers to the duration of the loan, not the type of credit.
D) Unsecured: This refers to whether the loan is backed by collateral or not.

In this case, the consumer is making fixed monthly payments towards a car loan. The fixed loan amount and fixed repayment terms align with non-revolving credit. Hence, the correct answer is A) Non-Revolving.

2. Caitlin wants to buy an airline ticket, but she's uncomfortable taking that much cash to the counter at the airport. Instead, she uses her credit card. Which advantage of credit is being demonstrated here?
Let's analyze the options:
A) Emergencies: This advantage refers to having access to credit for unexpected situations.
B) Building a credit line: This advantage is about establishing a credit history and improving credit scores.
C) Protection of purchases: This advantage relates to insurance or dispute resolution mechanisms provided by credit cards.
D) Purchase Power: This advantage refers to the ability to make purchases even if you don't have immediate cash on hand.

In this case, Caitlin is using her credit card to buy the airline ticket, which demonstrates the advantage of having purchase power. She can make the payment using the credit card, rather than carrying a large amount of cash. Therefore, the correct answer is D) Purchase Power.

3. Which is an example of a variable expense category?
Consider the options:
A) Car payment: Car payments are typically fixed obligations with the same amount due each month.
B) Gym membership: Gym membership costs are usually fixed amounts.
C) Birthday gifts: Expenses on birthday gifts could vary depending on the specific gifts selected.
D) Insurance: Insurance premiums are often fixed amounts.

Among the options, the example that represents a possible variable expense category is C) Birthday gifts. The cost of birthday gifts can vary depending on the recipient and the specific gifts chosen. Therefore, the correct answer is C) Birthday gifts.

4. What is a benefit of using a financial tool to track your budget?
Let's evaluate the options:
A) It provides you discounts for the things you buy most often: This option refers to the benefits of loyalty programs or financial rewards, not specifically tracking your budget.
B) It gives you a visual of your income and expenses: Tracking your budget using a financial tool can provide visual representation of your income and expenses, helping you better understand your financial situation and make more informed decisions.
C) It keeps all of your personal information protected: While some financial tools may offer security features, this is not a specific benefit of tracking your budget.
D) It makes banks more likely to offer you low-interest rates: Tracking your budget can help you demonstrate financial responsibility, which may positively impact your credit score and potentially lead to more favorable financial terms such as low-interest rates.

Out of the options, the benefit that aligns with tracking your budget is B) It gives you a visual of your income and expenses. Using a financial tool can provide visual representation and insights into your financial status, helping you manage your money effectively. Therefore, the correct answer is B.

Based on your explanations, your answers are indeed correct:
1. A) Non-Revolving
2. D) Purchase Power
3. C) Birthday gifts
4. B) It gives you a visual of your income and expenses

Well done! If you have any more questions or need further explanations, feel free to ask.

I agree.