Financial Literacy Chapter 4 Vocabulary Quiz

money owed to another person or company

• home equity

• debt

• lien

• loan

credit that automatically renews whenever a payment is made to reduce the debt

• revolving

  credit

• loan

• home equity loan

• debt

something of value that a borrower lets the lender claim if a loan is not repaid

• loan

• collateral

• debt

• revolving credit

a legal claim against (or right to own) an asset until the debt (loan) is repaid​​​​​​​

• collateral

• debt

• lien

• equity

the increase in value of a home over time; the difference between the amount owed and what the home could be sold for​​​​​​​

• equity

• interest

• loan

• debt

failure to repay a loan on time​​​​​​​

• credit

• loan

• default

• collateral

a loan for a fixed amount of money that‘s paid back in monthly installments

• installment credit

• revolving credit

• home equity loan

• loan

an asset that loses value over time, such as a car that’s worth less every year​​​​​​​

• home equity loan

• depreciating credit

• credit

• loan

a lender who uses deceptive, unfair, or fraudulent practices on borrowers who are desperate for cash

• depreciating loan

• predatory lending

• home equity loan

• fradulent

a number assigned to a person that indicates to lenders their capacity to repay a loan.

• loan

• debt

• interest rate

• credit scoree