Understanding Types of Loans Reading
Authored by Shari McCourt
Mathematics
12th Grade
CCSS covered
Used 8+ times
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28 questions
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1.
MULTIPLE SELECT QUESTION
15 mins • 1 pt
1. Why do lenders charge interest? (Choose all that apply)
Because they are taking a risk by lending money.
Because the IRS makes them.
To make money.
To make it difficult for you to afford the things you want.
Tags
CCSS.RI.8.1
CCSS.RI.8.8
CCSS.RL.11-12.1
CCSS.RL.8.1
CCSS.RL.9-10.1
2.
MULTIPLE CHOICE QUESTION
15 mins • 1 pt
2. Why is comparing loans confusing?
Because information about loans is not readily available.
Because you need a college degree to understand them.
Because there are so many types of loans, fees, interest rates, and term lengths.
Because banks do not want you to be able to shop around so them make it hard to understand.
Tags
CCSS.RI. 9-10.2
CCSS.RI.11-12.2
CCSS.RL.11-12.2
CCSS.RL.8.2
CCSS.RL.9-10.2
3.
MULTIPLE SELECT QUESTION
15 mins • 1 pt
3. Why is a lien sometimes necessary for lenders? (Choose all that apply)
Because it gives the lender the ability to support the borrower if they are struggling to repay their debt.
Because the lender needs to lend the borrower more money.
Because it gives a lender the chance to recoup money when a borrower fails to pay their debt.
Because a borrower has not made payments on thier loan.
Tags
CCSS.RI.11-12.5
CCSS.RI.9-10.5
CCSS.RI.8.5
CCSS.RI.6.5
CCSS.RI.7.5
4.
MULTIPLE CHOICE QUESTION
15 mins • 1 pt
4. Which is not an example of a Closed-End Loan?
Mortgages
Credit Cards
Car Loans
Student Loans
Tags
CCSS.RI.11-12.5
CCSS.RI.9-10.5
CCSS.RI.11-12.3
CCSS.RI.9-10.3
CCSS.RI.8.3
5.
MULTIPLE CHOICE QUESTION
15 mins • 1 pt
5. ______ is a financial asset.
Interest
Collateral
Principal
APR
Tags
CCSS.RF.3.3B
CCSS.RF.3.3C
CCSS.RF.3.3D
CCSS.RF.4.3A
CCSS.RF.5.3A
6.
MULTIPLE CHOICE QUESTION
15 mins • 1 pt
6. A _________ is a one-time loan for a fixed amount that borrowers make payments toward the balance.
Credit Card
Open-End Loan
Closed-End Loan
Tags
CCSS.RI.11-12.5
CCSS.RI.9-10.5
CCSS.RI.11-12.3
CCSS.RI.9-10.3
CCSS.RI.8.5
7.
MULTIPLE CHOICE QUESTION
15 mins • 1 pt
7. A type of loan that doesn't require collateral from borrowers but instead lenders rely on credit reports and credit scores.
Unsecured Loan
Secured Loans
Open-Ended Loan
Tags
CCSS.RI.11-12.5
CCSS.RI.9-10.5
CCSS.RI.11-12.3
CCSS.RI.9-10.3
CCSS.RI.8.3
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