Week10 Borrowing Basics Vocabulary Quiz

Credit

• amount of money charged by a bank to borrow money

• issue of money, goods or services to an individual or entity with the expectation of future payments

• right to keep possession of property of another until a debt owed by the person is discharged

Credit Card

• trusted institutions where money is kept secure

• maximum amount being loaned to the borrower by the creditor

• provides a line of credit from a lending institution which can be accessed with a card, has a maximum limit (credit limit) which can be spent and requires monthly repayments

Unsecured Credit

•  maximum amount being loaned to the borrower by the creditor

• valuable asset the borrower offers to lender for securement of the loan provided

• amount of money charged by a bank to borrow money

• loan which is issued and supported by a borrower’s reliability, rather than value of an asset

Match the following

• Bank

• short-term, high cost loan typically for $500 or less and due on the next payday or when income is received

• Peer-to-Peer Lending

• issue of money, goods or services to an individual or entity with the expectation of future payments

• Interest

• amount of money charged by a bank to borrow money

• Payday Loans

• trusted institutions where money is kept secure

• Credit

• process of borrowing money from an individual or investor without a bank’s consent

Match the following

• Unsecured Credit

• provides a line of credit from a lending institution which can be accessed with a card, has a maximum limit (credit limit) which can be spent and requires monthly repayments

• Credit Card

• loan which is issued and supported by a borrower’s reliability, rather than value of an asset

• Installment Credit

• right to keep possession of property of another until a debt owed by the person is discharged

• Lien

• determines a series of fixed or installment payments a borrower must repay over a determined period of time

Match the following

• FBLA

• inspires and prepares students to become community-minded business leaders in a global society through relevant career preparation and leadership experiences.

• FBLA Mission

• The largest business Career and Technical Student Organization in the world. Each year, FBLA helps over 230,000 members prepare for careers in business.

• FBLA Pledge

• I solemnly promise to uphold the aims and responsibilities of Future Business Leaders of America and, as an active member, I shall strive to develop the qualities necessary in becoming a responsible business leader.