Kim wants to take a loan to buy a condominium. As part of the process, the lender examines Kim's credit score.

What information does the credit score communicate tothe lender?

• WhetherKim's income is likely to increase or decrease in the coming years
• If the value of the condominium will appreciate or depreciate in the future
• How likely Kim is to repay the loan and make payments on time
• If the fair market value of the property will equal or exceed the mortgage value

Ravi has monetary assets worth $20,000 and monthly living expenses of $2,000. The formula for emergency fund ratio is as follows:

Emergency Fund Ratio = Monetary Assets / Monthly Living Expenses

What is Ravi's calculated emergency fund ratio?

• 10 months
• 2 months
• 5 months
• 6 months

Miles needs to withdraw $4,500 from his Roth IRA to pay his medical bills.

In which of the following scenarios is the money withdrawn from theRoth IRA considered a qualifying distribution for Miles?

• Miles is disabled and withdraws his Roth IRA balance within 3 years of opening it.
• Miles is 65 years old and has been investing in the Roth IRA for the last 10 years.
• Miles withdraws money from his Roth IRA to make a down payment for his second home.
• Miles is 58 years old and withdraws only the principal portion from his Roth IRA.

Tim is buying a house by taking out a mortgage.

Which of the following protects either the lender or Tim in case someone else says they have a claim on the property after purchase?

• Title insurance
• Appraisal fee
• Mortgage insurance premium
• Homeowner's insurance

Karen needs to borrow $2,500 for the repair of the oven in her bakery. She uses her problem-solving skills and finds a lender through an online lending platform who agrees to loan her the money she requires.

Which type of loan is Karen opting for in the given scenario?

• Title loans
• Payday loan
• Peer-to-peer lending
• Pawn shop loan

Sandra opts to repay her student loans using the graduated repayment plan.

Which of the following is a feature of a graduated repayment plan?

• Sandra's outstanding debt will be forgiven after 10 years.
• Sandra's payments are fixed at an amount that ensures her loans are paid off within the next 10 years.
• Sandra's payments are limited to 10% of her discretionary income.
• Sandra will pay a lower amount in the beginning, and this amount increases over time.