Loans Cars & Housing Review

The gradual decrease in the value of an asset is called 

• repossession

• foreclosure

• appreciation 

• deprication

A type of debt that is backed by something of value is called

• unsecured debt 

• secured debt 

• underwater debt 

• PMI debt 

A car loan is an example of a(n)

• unsecured debt 

• mortgage

• lease

• installment loan

When you lease a car, you are the 

• renter 

• lessor

• lessee

• cosigner 

Owning more on an asset than it is worth is called being 

• underwater on the loan 

• in equality

• in assessment 

• in foreclosure 

A loan obtained when you purchase a home and use the home as collateral is a(n)

• unsecured debt 

• foreclosure

• mortgage

• assessment 

The difference between what you owe on your home and the balance of the mortgage on the home is called 

• equity 

• assessment 

• foreclosure 

• underwater 

When a bank takes possession of a home because the borrower has failed to make loan payments, it is called

• underwater 

• mortgage 

• assessment 

• foreclosure

An account for holding money in a trust for others is called a(n)

• mortgage 

• assessment 

• escrow

• foreclosure

A type of mortgage that allows the interest rate to change is called a(n)

• fixed rate mortgage 

• adjustable rate mortgage 

• underwater mortgage 

• collateral mortgage