1. If a consumer makes monthly payments of $250 to pay off a car loan, what type of credit is she
using?
(1 point)
nonrevolving
revolving
short term
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?
(1 point)
emergencies
building a credit line
protection of purchases
purchase power
3. Which is an example of a variable expense category? (1 point)
car payment
gym membership
birthday gifts
insurance
4. What is a benefit of using a financial tool to track your budget? (1 point)
It provides you discounts for the things you buy most often.
It gives you a visual of your income and expenses.
It keeps all of your personal information protected.
It makes banks more likely to offer you low-interest rates.
answers
b
d
a
c
