What is a peer-to-peer loan? (1 point) Responses a loan from one entity electronically matched to another entity without a financial institution in the middle a loan from one entity electronically matched to another entity without a financial institution in the middle a short-term loan at high interest rates initiated by a worker who needs cash immediately a short-term loan at high interest rates initiated by a worker who needs cash immediately a loan given without review of the borrower’s credit report or credit score a loan given without review of the borrower’s credit report or credit score a type of loan where the title to an asset is used as collateral
The correct response is: a loan from one entity electronically matched to another entity without a financial institution in the middle.
A peer-to-peer loan is a loan from one entity electronically matched to another entity without a financial institution in the middle.
A peer-to-peer loan is a type of loan where one entity electronically matches with another entity without involving a financial institution in the middle. It is a direct lending approach where individuals can borrow money from other individuals without going through traditional banks or credit institutions. P2P lending platforms facilitate these transactions by connecting borrowers and lenders online. These platforms provide a marketplace where borrowers can request a loan and lenders can choose to fund them. The loan terms, interest rates, and repayment terms are negotiated between the borrower and the lender.
What is an unsecured loan? (1 point) Responses a debt whose repayment is guaranteed by a pledge of something of value or a guarantor a debt whose repayment is guaranteed by a pledge of something of value or a guarantor a payday loan a payday loan a mortgage a mortgage a car lease
The correct response is: a debt whose repayment is guaranteed by a pledge of something of value or a guarantor.
What kind of loan is a federal student loan? (1 point) Responses a revolving line of credit a revolving line of credit an unsecured collateral loan an unsecured collateral loan an unsecured installment loan an unsecured installment loan a secured personal loan
The correct response is: an unsecured installment loan. Federal student loans are a type of unsecured loan where the borrower does not need to provide collateral or a guarantor in order to qualify for the loan. These loans are typically used to fund educational expenses and have fixed interest rates and repayment terms.
How does decreasing your credit card balance affect your income statement?(1 point) Responses It increases your monthly expenses, increasing the amount you spend each month. It increases your monthly expenses, increasing the amount you spend each month. It increases your monthly expenses, giving you more money to spend on other things. It increases your monthly expenses, giving you more money to spend on other things. It decreases your monthly expenses, increasing the amount you spend each month. It decreases your monthly expenses, increasing the amount you spend each month. It decreases your monthly expenses, giving you more money to spend on other things.
None of the provided responses accurately describe how decreasing your credit card balance affects your income statement. Decreasing your credit card balance does not directly impact your income statement, which is a financial statement that shows your income, expenses, and net profit or loss over a specific period. Your credit card balance is related to your liabilities and personal finances, but it does not directly impact your income statement.
What should you do before you complete your net worth statement?(1 point) Responses Redistribute the investments in your retirement account. Redistribute the investments in your retirement account. Decide what, if anything, you are going to leave to your children in your will. Decide what, if anything, you are going to leave to your children in your will. Complete your income statement. Complete your income statement. Determine or estimate the current value of everything you own.
The correct response is: Determine or estimate the current value of everything you own. Before completing your net worth statement, you need to determine or estimate the current value of all your assets, including cash, investments, real estate, vehicles, and any other possessions. This will help you calculate your total assets and liabilities, which are then used to determine your net worth.
Which of the following best defines someone's capacity?(1 point) Responses Their prior record of paying bills and paying off debts Their prior record of paying bills and paying off debts Their ability to repay a loan Their ability to repay a loan Items attached to a loan that may be seized if they fail to repay Items attached to a loan that may be seized if they fail to repay Undocumented loans they received from friends and family members
The correct response is: Their ability to repay a loan. Capacity refers to an individual's ability to repay a loan, which is often assessed by looking at their income, employment stability, and financial resources. It is an important factor considered by lenders when determining a borrower's creditworthiness and ability to meet loan repayment obligations.
In the context of credit ratings, what is character?(1 point) Responses something of value used to secure a loan something of value used to secure a loan a numerical estimate of your creditworthiness a numerical estimate of your creditworthiness your ability to repay a loan your ability to repay a loan your prior record of paying your bills and paying off your debts
The correct response is: your prior record of paying your bills and paying off your debts. In the context of credit ratings, character refers to an individual's credit history and their past behavior in repaying debts and meeting financial obligations. It reflects how responsible and reliable a person has been in managing their credit and finances. A positive credit history demonstrates good character and can result in a higher credit rating or score.
Which of the following is not going to appear on your credit report?(1 point) Responses a list of your employers a list of your employers your credit card account your credit card account whether you have ever declared bankruptcy whether you have ever declared bankruptcy your age and gender
The correct response is: your age and gender. Your age and gender are not factors that appear on your credit report. The information typically included in a credit report includes your personal identifying information, such as your name, address, and social security number. It also includes details about your credit accounts, loan balances, payment history, credit inquiries, and public records such as bankruptcies or tax liens. However, your age and gender are not considered relevant or necessary for assessing creditworthiness and are not included in credit reports.
Which choice is an accurate fact about credit reports?(1 point) Responses You can request one whenever you want. You can request one whenever you want. You can request one online or over the phone. You can request one online or over the phone. You can request one no more than once a year. You can request one no more than once a year. You can request one only if you have been turned down for credit
The accurate fact about credit reports is: You can request one online or over the phone.
Darren’s credit report lists seven credit cards that he does not have. What should he do?(1 point) Responses He should contact all three credit bureaus, the companies that issued the seven fraudulent cards, the companies that issued the two credit cards he does have, his local police, and the federal government at identitytheft.gov. He should contact all three credit bureaus, the companies that issued the seven fraudulent cards, the companies that issued the two credit cards he does have, his local police, and the federal government at identitytheft.gov. He should contact the credit bureau that issued the credit report, the companies that issued the two credit cards he does have, and the federal government at identitytheft.gov. He should contact the credit bureau that issued the credit report, the companies that issued the two credit cards he does have, and the federal government at identitytheft.gov. He should contact the credit bureau that issued the credit report, his local police, and the federal government at identitytheft.gov. He should contact the credit bureau that issued the credit report, his local police, and the federal government at identitytheft.gov. He should contact the credit bureau that issued the credit report, the companies that issued the seven fraudulent cards, his local police, and the federal government at identitytheft.gov.
The correct response is: He should contact all three credit bureaus, the companies that issued the seven fraudulent cards, the companies that issued the two credit cards he does have, his local police, and the federal government at identitytheft.gov. If Darren's credit report lists seven credit cards that he does not have, it is likely a case of identity theft. To address this issue, he should take immediate action by contacting all three credit bureaus (Experian, Equifax, TransUnion) to report the fraudulent accounts. He should also notify the companies that issued the seven fraudulent cards and the two credit cards he actually possesses. Additionally, reporting the incident to his local police and the federal government, through identitytheft.gov, is crucial to initiate investigations and protect himself from further identity theft.
A clerical error caused a simple mistake on your credit report. Once you gather proof that the information is incorrect, which two of the following should you provide it to? Select the two correct answers.(1 point) Responses your bank your bank the credit bureau that prepared the report the credit bureau that prepared the report every company that has provided you with credit or a loan every company that has provided you with credit or a loan the lender that provided the incorrect information the lender that provided the incorrect information the federal government
The two correct answers are:
1. The credit bureau that prepared the report
2. The lender that provided the incorrect information
When there is a clerical error on your credit report, you should provide proof of the incorrect information to the credit bureau that prepared the report. They are responsible for maintaining and updating your credit information. Additionally, you should also provide the proof to the lender that provided the incorrect information. They can work directly with the credit bureau to correct the error and update your credit report.