2 of 32 of 3 Items

Question

2 of 32 of 3 Items
Question 1
What happens to interest rates when there is a high demand for car loans?(1 point)
Responses

Interest rates decrease to encourage borrowing.
Interest rates decrease to encourage borrowing.

Interest rates remain the same regardless of demand.
Interest rates remain the same regardless of demand.

Interest rates may increase due to higher demand.
Interest rates may increase due to higher demand.

Interest rates are only affected by government policies.
Interest rates are only affected by government policies.
Question 2
Why do many financial advisors recommend accounts that offer compound interest?(1 point)
Responses

Because compound interest allows for lower initial investments.
Because compound interest allows for lower initial investments.

Because simple interest is more complicated to calculate.
Because simple interest is more complicated to calculate.

Because compound interest can lead to higher total earnings over time.
Because compound interest can lead to higher total earnings over time.

Because compound interest is guaranteed to earn more every year.
Because compound interest is guaranteed to earn more every year.
Question 3
If Jaden earns around $30,000 a year and Ava earns $70,000 or more annually, what can be inferred about their education or skills?(1 point)
Responses

Ava's job is less demanding than Jaden's.
Ava's job is less demanding than Jaden's.

Ava and Jaden have the same level of education.
Ava and Jaden have the same level of education.

Ava likely has higher education or more skills than Jaden.
Ava likely has higher education or more skills than Jaden.

Jaden likely has more experience than Ava.
Jaden likely has more experience than Ava.
Question 4
What might happen if you miss a credit card payment?(1 point)
Responses

Your credit limit will be increased.
Your credit limit will be increased.

You will receive a refund for the missed payment.
You will receive a refund for the missed payment.

You may incur late fees and higher interest rates.
You may incur late fees and higher interest rates.

Your credit card will be canceled immediately.
Your credit card will be canceled immediately.
Question 5
What is one advantage of using a credit card?(1 point)
Responses

It eliminates the need for a credit score.
It eliminates the need for a credit score.

It provides purchase protection.
It provides purchase protection.

It guarantees a loan approval.
It guarantees a loan approval.

It allows unlimited borrowing without repayment.
It allows unlimited borrowing without repayment.
Question 6
Which of the following best describes the relationship between timely car payments and credit scores?(1 point)
Responses

Only credit card payments affect credit scores.
Only credit card payments affect credit scores.

Timely payments can help build a good credit score.
Timely payments can help build a good credit score.

Timely payments have no effect on credit scores.
Timely payments have no effect on credit scores.

Late payments can improve credit scores.
Late payments can improve credit scores.
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GPT-4o mini · Answer

Here are the best responses for each question based on general financial principles:

Question 1: What happens to interest rates when there is a high demand for car loans?
Response: Interest rates may increase due to higher demand.

Question 2: Why do many financial advisors recommend accounts that offer compound interest?
Response: Because compound interest can lead to higher total earnings over time.

Question 3: If Jaden earns around $30,000 a year and Ava earns $70,000 or more annually, what can be inferred about their education or skills?
Response: Ava likely has higher education or more skills than Jaden.

Question 4: What might happen if you miss a credit card payment?
Response: You may incur late fees and higher interest rates.

Question 5: What is one advantage of using a credit card?
Response: It provides purchase protection.

Question 6: Which of the following best describes the relationship between timely car payments and credit scores?
Response: Timely payments can help build a good credit score.

Feel free to ask if you need further assistance!