5. General factors to consider when shopping for a consumer loan Factors to consider Before Taking Out a Consumer Loan 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. Does the loan have a prepayment penalty? What is the total cost of transaction (cost of item purchased plus cost of loan)? What is the loan's APR? Whattate payment charges, if any, can be accessed, and when? If toccept the loan, what is my new debt safety ratio? You're shopping for a big loan, but you have misgivings about Charles, 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 When you nlled out the loan application, Charles told you to leave out the smaller amounts you owe to department stores. When you Diled out the application, Charles 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 Charles encouraged you to shop around. Charles told you that the interest rate is the only important fee to worry about and that discussing the APR is an unnecessary complication Charles pointed out that the APR and interest rate were different Charles went over the fine peint, such as late payment charges and prepayment provisions Chantes volunteered pertinent Information that you didn't even know enough to ask about Charles 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 Charles the loan officer? Check all that apply. The loan officer's embellishment of the facts The way the loan oicer omitted pertinent information Feeling under pressure to make a decision Your friend suggested you look into a variable-rate loan what questions should you ask? Check all that apply Is there a maximum rate Can I offord the maximum possible monthly payment? What is the interest rate tied to What changes after a rate adjustment--the monthly payment amount or the number of monthly payments left on the loan? 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 apply Ta Prepare a list of possible alternatives and make a random selection Identity your goals and a framework for evaluating any trade-offs that must be made when making your decision Arises when there are too few alternatives and you wish you had more features or options to select from Keep it simple and select the easiest or least expensive alternative