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friends.
credit unions.
Question 14. Which one of the following is a signal of a potential debt
problem?
Paying the maximum balance due each month
Borrowing money to pay old debts
Using savings to pay for major purchases
Receiving notice of prompt payment from creditors
Occasionally working overtime and moonlighting
Question 15. If Tony Jones knows he can get a car loan for up to 5
years at a credit union but decides that he can easily repay the loan in
3 years, and therefore gets a 3-year loan, how is Tony reducing the
lender's risk?
He is sharing the interest rate risk with his lender.
He is pledging valuable assets that can be seized if the loan is not
repaid.
He is repaying the loan over a faster period of time.
He is taking a larger stake in the asset he is purchasing.
He is obtaining the loan from the credit union.
Question 16. Sarah Russell starts the month with a balance of $1,000
on her credit card. On the 10th day of the month, she purchases $200
in clothes with her credit card. On the 15th day of the month she
makes a payment on her credit card of $500. The average daily
balance for the month including the new purchase is $883. The