Unit 8 Vocabulary

Mary and John recently purchased their dream house for $300,000. They were able to secure a loan from the bank that says they will make monthly payments over a period of 30 years. What financial arrangement have Mary and John entered into?

• Mortgage

• Collateral

• Donation

• Lending institution

Mark wanted to take a loan out for a new car. Before he could do that, the bank assessed his credit score, income, and financial history to make sure he __________ for the loan. As long as he meets all of the required criteria, he will be approved!

• Cosigned

• Liened

• Qualified

• Rejected

Emily wants to borrow money from the bank to start her own business. The bank asks if she has something valuable, like a car or property, that she can promise to give them if she can't pay back the loan. What do we call this valuable thing that acts as a guarantee for the bank?

• Lending Institution

• Collateral

• Donation

• Repayment

Jessica decides it is finally time to move out on her own. She is on the market to buy a new house for herself to live in, however everything is so expensive! Her mom tells her she needs to look into getting a __________ in order to afford the house. Overtime, she will pay that money back.

• Roommate

• Loan

• Interest rate

• Donation

Sarah is applying for a student loan to cover her tuition fees, but the bank is concerned about her limited credit history. To increase her chances of approval, Sarah asks her aunt to help her out and be a __________. The aunt agrees to take on the responsibility of repaying the loan if Sarah is unable to do so.

• Friend

• Lending institution

• Principal

• Cosigner

James is looking to borrow money to purchase a new car. He explores different __________ for obtaining a loan and considers banks, credit unions, and online financial platforms. Eventually, he chooses a well-established organization that has a great reputation with giving out loans.

• Lending institutions

• Investments

• Collateral

• Lien

Sarah bought a house with a loan from the bank. The bank has a special right on her property until she pays back the loan. Once she does that, the house is hers! What is this right called?

• Lien

• Donations

• Financial Command

• Term

Greg is sending his son, Matt, off to college. With the price of the tuition, he decides it is best to take out a loan in order to afford it. He seems to be having a bit of trouble finding a loan with a reasonable __________. Every bank seems to have a very quick time frame, but Greg was hoping to have a few extra years!

• Lending Institution

• Cosigner

• Lien

• Term