Poverty, by America - Chapter 4 Quiz

Why are poor families often excluded from owning homes?

Question Answer Choices They prefer the flexibility of renting. They are not interested in homeownership. They do not qualify for any type of mortgage. Several factors discourage them from even trying.

What is one consequence of having a bad or mediocre credit score?

Question Answer Choices It can result in increased utility bills. It can prevent people from renting an apartment. It can lead to higher property taxes. It can cause higher grocery prices.

What is the average duration a payday loan borrower remains indebted?

Question Answer Choices Three months One month Five months Seven months

What percentage of payday loans are rolled over or renewed?

Question Answer Choices 80% 60% 90% 50%

Why do poor families often not move to better neighborhoods, even if rents are similar?

Question Answer Choices They do not want to leave their current community. They prefer the amenities available in poorer neighborhoods. They are unaware of the rental prices in better neighborhoods. They typically move due to eviction or danger, not to secure a nicer home.

What is one reason why poor families often pay higher rents for worse housing?

Question Answer Choices They prefer to live in neighborhoods with higher crime rates. They have limited economic freedom and few housing options. They do not want to move to areas with better school districts. They choose to pay higher rents to avoid homeownership responsibilities.

Why do payday loan companies make the largest profits?

Question Answer Choices When the loans are taken out in large amounts. When the loans are given to high-income individuals. When the loans are rolled over or renewed. When the loans are paid off early.

What did Desmond find about the profitability of properties in poor neighborhoods compared to richer ones?

Question Answer Choices Properties in the poorest neighborhoods were the most profitable. Properties in rich neighborhoods were the most profitable. Properties in middle-class neighborhoods were the most profitable. All neighborhoods had similar profitability.

What is one reason why banks deny accounts to some customers?

Question Answer Choices Living in a poor neighborhood. Not having a steady job. A history of frequently using overdrafts. Having too many credit cards.

What is one reason why Black and Hispanic families are more likely to be unbanked?

Question Answer Choices Limited financial literacy programs. Racial disparities in banking. Preference for using cash. Lack of access to the internet.