Question

When lenders notice an increase in demand for loans, what is a likely response?(1 point) Responses They will lower interest rates to encourage borrowing. They will lower interest rates to encourage borrowing. They will stop lending altogether. They will stop lending altogether. They will only lend to established customers. They will only lend to established customers. They will raise interest rates to manage the increased demand. They will raise interest rates to manage the increased demand. Question 2 How does the interest earned with simple interest compare to that earned with compound interest over time?(1 point) Responses Simple interest always earns more than compound interest. Simple interest always earns more than compound interest. Compound interest can significantly increase total earnings over time compared to simple interest. Compound interest can significantly increase total earnings over time compared to simple interest. Compound interest is only beneficial for short-term investments. Compound interest is only beneficial for short-term investments. Simple interest and compound interest earn the same amount over time. Simple interest and compound interest earn the same amount over time. Question 3 Which of the following statements is true regarding the job market?(1 point) Responses Higher education levels and more skills tend to earn less money. Higher education levels and more skills tend to earn less money. Higher education levels and more skills tend to earn more money. Higher education levels and more skills tend to earn more money. Education has no relevance in the job market. Education has no relevance in the job market. Skills are irrelevant to salary negotiations. Skills are irrelevant to salary negotiations. Question 4 Which statement about revolving credit is accurate?(1 point) Responses It is only available to individuals with excellent credit scores. It is only available to individuals with excellent credit scores. It allows you to borrow up to a certain limit and renews as you pay it back. It allows you to borrow up to a certain limit and renews as you pay it back. You must pay off the entire balance every month. You must pay off the entire balance every month. It has a fixed interest rate that never changes. It has a fixed interest rate that never changes. Question 5 How do credit cards provide purchase protection?(1 point) Responses They may reimburse you for damaged or lost items. They may reimburse you for damaged or lost items. They offer discounts on future purchases. They offer discounts on future purchases. They allow you to return items without a receipt. They allow you to return items without a receipt. They automatically extend warranties on all purchases. They automatically extend warranties on all purchases. Question 6 In what way is a car payment similar to renting an apartment?(1 point) Responses Both require a down payment. Both require a down payment. Both can be paid off early without penalties. Both can be paid off early without penalties. Both are fixed amounts paid regularly. Both are fixed amounts paid regularly. Car payments are always more expensive than rent for an apartment. Car payments are always more expensive than rent for an apartment.

Answer 1

Here are the most likely correct answers for each question:

Question 1: When lenders notice an increase in demand for loans, what is a likely response?

• Response: They will raise interest rates to manage the increased demand.

Question 2: How does the interest earned with simple interest compare to that earned with compound interest over time?

• Response: Compound interest can significantly increase total earnings over time compared to simple interest.

Question 3: Which of the following statements is true regarding the job market?

• Response: Higher education levels and more skills tend to earn more money.

Question 4: Which statement about revolving credit is accurate?

• Response: It allows you to borrow up to a certain limit and renews as you pay it back.

Question 5: How do credit cards provide purchase protection?

• Response: They may reimburse you for damaged or lost items.

Question 6: In what way is a car payment similar to renting an apartment?

• Response: Both are fixed amounts paid regularly.

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