Question

What is the avalanche method for paying off debts?
Group of answer choices

paying off high interest cards first

paying off the smallest balance card first

calling credit cards companies to ask for interest reduction

paying the highest interest card and postponing the other card payments

Flag question: Question 2
Question 22 pts
What is the word for what banks charge customers for borrowing money?
Group of answer choices

interest

collateral

pension

savings

Flag question: Question 3
Question 32 pts
Why do some banks and other financial institutions require collateral for loans?
Group of answer choices

to reduce the risk of lending

to assess the trustworthiness of the customer

to increase profits

to decrease profits

Flag question: Question 4
Question 42 pts
Which of the following types of debt payments do not have a fixed term length?
Group of answer choices

credit cards

student loans

mortgages

car loans

Flag question: Question 5
Question 52 pts
Which of the following is the BEST example of a secured debt?
Group of answer choices

a mortgage

student loans

credit cards

medical bills

Answer 1

Here are the answers to your questions based on personal finance principles:

**Question 1: What is the avalanche method for paying off debts?**
- **Answer:** paying off high interest cards first

**Question 2: What is the word for what banks charge customers for borrowing money?**
- **Answer:** interest

**Question 3: Why do some banks and other financial institutions require collateral for loans?**
- **Answer:** to reduce the risk of lending

**Question 4: Which of the following types of debt payments do not have a fixed term length?**
- **Answer:** credit cards

**Question 5: Which of the following is the BEST example of a secured debt?**
- **Answer:** a mortgage

Let me know if you need further clarification on any of the answers!