Borrowing Basics

Which of the following requires the borrower to offer a securement to the lender, in case they do not repay the loan?

• Paycheck

• Collateral

• Credit card

• Character

Which of the following is an example of revolving credit?

• Student Loan

• Auto Loan

• Mortgage

• Credit card

Which of the following credit scores are considered fair?

• 690 to 719

• Above 720

• 630 to 689

• Below 600

Which of the following is the first step of the borrowing process?

• Selecting the right loan program

• Applying for a loan

• Processing the loan

• Determining the amount to borrow

Which of the following is a short-term, high-interest loan designed to bridge the gap from one paycheck to the next?

• Personal loan

• Payday loan

• Mortgage

• Student loan

Which of the following is the annual or yearly rate charged for borrowing or earning through an investment?

• Annual percentage rate

• Variable interest rate

• Interest rate

• Fixed interest rate

Which of the following involves a lending institution allowing a consumer to borrow money and then pay back some or all of it each month?

• Payday loan

• Interest

• Income statement

• Credit card

Which of the following is NOT an impact of credit decisions?

• Collateralized statement

• Net worth statement

• Income statement

• Monthly budget

Which of the following is NOT considered a bad borrowing habit?

• Spending more than can be earned

• Ignoring credit reports

• Failing to budget

• Reviewing debt periodically

Which of the following provides international banking to multinational corporations?

• Federal bank

• Merchant bank

• Peer-to-peer lending

• Interest banking