Question

when comparing credit card offers, which term most affects the cost of borrowing?

• card color
• signature requirement
• apr
• card design fee

a borrower’s wages are garnished after a court judgment. what does this mean?

• their paycheck increases
• the borrower is banned from future loans
• part of each paycheck is withheld to repay debt
• their bank account cannot be touched

Explanation:

First Question:

To determine which term affects the cost of borrowing for credit cards, we analyze each option:

• Card color: Aesthetic feature, no impact on borrowing cost.
• Signature requirement: Related to transaction authorization, not cost.
• APR (Annual Percentage Rate): Represents the annual cost of borrowing, directly affecting how much is paid in interest.
• Card design fee: One - time or occasional fee, not the primary factor for borrowing cost over time.

To understand wage garnishment after a court judgment:

• "Their paycheck increases": Garnishment takes money from paychecks, so this is wrong.
• "The borrower is banned from future loans": Garnishment is about repaying existing debt, not future loan eligibility.
• "Part of each paycheck is withheld to repay debt": Wage garnishment means a portion of the borrower's earnings is taken (withheld) by the employer and sent to creditors to repay the debt.
• "Their bank account cannot be touched": Garnishment can involve bank accounts too, and this is not the definition of wage garnishment.

Answer:

C. APR

Second Question: