Reference no: EM131810999

1. Which of the following is true of installment loans?

Installment loans, like home equity loans, offer the benefit of tax deductibility on the interest paid on them.

Installment loans are secured using only second mortgages.

Installment loans are revolving credit lines from which consumers can borrow, repay, and reborrow.

Installment loans require the principal to be repaid in a single payment.

Installment loans are issued only by the federal government

2. When the interest rate on savings is two times the interest rate on a loan, it is-----------------

less expensive to use your savings to make a purchase

less expensive to borrow to make a purchase

more expensive to borrow to save

more expensive to borrow half the amount