Credit & Loans Quiz

1. An agreement where you are credited with a fixed amount of money for a fixed period of time, usually with interest

• loan

• term

• principal

• collateral

The amount of time you have to repay your entire loan

• Down Payment

• Principal

• Term

• APR

Someone who legally agrees to take responsibility for a person's debt if they cannot repay it

• Net Worth

• APR

• Collateral

• Cosigner

• Principal

Something valuable that the lender can take as payment if you can't or don't repay your secured loan

• cosigner

• collateral

• principal

• interest

Original amount of money borrowed, separate from interest or fees

• Annual Percentage Rate

• Down Payment

• Term

• Principal

The cost you pay each year to borrow money, including fees, expressed as a percentage

• Principal

• APR

• credit limit

• Equity

Debt not tied to a specific asset, making it difficult or impossible for the lender to repossess items if payments are not made

• secured loan

• unsecured loan

• fixed rate

• variable rate

The maximum amount that may be borrowed on a credit card

• debt

• loan

• term

• credit limit

The smallest amount of a credit card bill that a credit card holder must pay during a billing cycle to remain in good standing with the lender

• minimum payment

• term

• principal

• APR

Net Worth =

• assets - liabilities

• liabilities - assets

• equity - assets

• liabilities - equity