Debt Management Basics: Chapter 2 quiz

At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict , this post may contain references to products from our partners. Here’s an explanation for

Which bank should I choose?

Get personalized bank recommendations in 3 easy steps.

If you think you’ve mastered the material in this chapter, take our quiz. After you click the ”submit” button, the answers will appear below.

  1. True or false. Consolidating your high-interest credit card debts with a home equity loan is a safe and guaranteed way to wipe out debts.

    True
    False
  2. Which best describes a cash-out refinance?

    You refinance your mortgage for more than you currently owe, then pocket the difference.
    You take out a second mortgage using the equity of your home as collateral and pocket the cash from the second mortgage.
  3. True or false: Home equity lines of credit are not fixed-rate loans.

    True
    False