You've made the decision to purchase an item that is affordable only with a loan. When shopping for a loan, there are many aspects of the loans that you should examine. Which of the following questions should be asked and answered about a specific loan proposal before accepting a lender's offer? Check all that apply. What is the total cost of transaction (cost of item purchased plus cost of loan)? What is the loan's APR? What late payment charges, if any, can be accessed, and when? Does the loan have a prepayment penalty? Do the loan's monthly payments fit in my budget? You're shopping for a big loan, but you have misgivings about Musashi, the loan officer, at an institution you just visited. What are some reasons that may have you uneasy about accepting a loan there? Check all that apply. Musashi encouraged you to shop around. Musashi pointed out that the APR and interest rate were different. Musashi went over the fine print, such as late payment charges and prepayment provisions Musashi said that today is the only day you can secure the loan with favorable terms. Musashi gave you a range of terms and said they'll be worked out at closing Your parents may be able to help you with the down payment, but Musashi told you to assume they will and to enter a down payment on the application including their contribution Your parents may be able to help you with the down payment, but Musashi told you to assume they will and to enter a down payment on the application including their contribution. when you filled out the application, Musashi said if you weren't sure about something on it, you could take the application home and complete it when you had the correct answers. Musashi discussed options for taking out a smaller loan, such as selling current assets to raise a bigger down payment. What are the characteristics of your reasons for feeling uneasy about Musash the loan officer? Check all that apply. The way the loan officer omitted pertinent information Feeling under pressure to make a decision The loan officer's embellishment of the facts Your friend suggested you look into a variable-rate loan. What questions should you ask? Check all that apply. How many points are added to the base rate? Can I afford the maximum possible monthly payment? How often is the rate subject to change? Is there a maximum rate? Given the long list of relevant loan-related considerations described above, the paradox of choice often arises when attempting to make borrowing decisions. Which of the following phrases addresses the characteristics and recommended solutions for this phenomenon? Check all that any The loan officer's embellishment of the facts Your friend suggested you look into a variable-rate loan. What questions should you ask? Check all that apply. How many points are added to the base rate? Can I afford the maximum possible monthly payment? How often is the rate subject to change? Is there a maximum rate? Given the long list of relevant loan-related considerations described above, the paradox of cholce often arises when attempting to make borrowing decisions. Which of the following phrases addresses the characteristics and recommended solutions for this phenomenon? Check all that apply. Be prepared to ask for assistance Arises when there are too few alternatives and you wish you had more features or options to select from Arises when there are too many complicated choices, such you can become overwhelmed and make poor decisions Prepare a list of possible alternatives and make a random selection
