Loans intro

Loans intro

Multiple Choice

If my credit score is low at a 600, should my interest be high or low

• High Interest
• Low Interest

Multiple Choice

The longer the loan term the less total interest you pay.

• False

• True

Multiple Choice

Interest can be defined as:

• a charge for lending money

• the amount owed for borrowing money

• the amount added into your savings account when opening a bank account

• a charge for convenience of accessing money in your bank

Multiple Choice

This is the form you must fill out before going to college in order to get aid from the government to pay for college

• FAFSA
• FASAF
• FASFA
• AFSAF

Multiple Choice

A personal loan is ....

• principal that banks lend to businesses

• principal that banks lend to an individual business

• principal that banks lend to an individual person

• principal that banks lend to buy a car

Multiple Choice

I don't owe the bank any more money because I've .... my loan.

• defaulted on

• paid off

• computed

• applied for

Multiple Choice

The bank adds the interest to the .... to calculate the monthly payment of your loan.

• principal

• tenure

• charge account

• credit file

Multiple Choice

The first thing that the customer needs to do to take a loan is ....

• fill out the loan application

• compute the interest payments on the principal

• check the customer's information in the credit file

• decide tenure of the loan

Multiple Choice

Loans for buying cars are called ....

• commercial loans

• personal loans

• auto loans

• loan application

Multiple Select

The three elements of loan in credit rating that can be offered to the customer by the credit dept. are ....

• amount

• type

• term

• collateral

Multiple Choice

The amount of money that the lender lends to the borrower is called ....

• principal

• tenure

• default

• collateral

Multiple Choice

The bank will take possession of your car if you .... your car loan.

• pay off

• default on

• endorse

• compute

Multiple Choice

My friend offered the bank his house as .... when he needed a loan.

• collateral

• debt

• term

• tenure