Loan Fundamentals Mastery

What is a secured loan?

• A) A loan that is backed by a government guarantee.

• B) A loan that requires collateral.

• C) A loan given without any background checks.

• D) A loan with a variable interest rate.

What does APR stand for in the context of loans?

• A) Annual Percentage Rate

• B) Average Payment Rate

• C) Annual Payment Requirement

• D) Approved Personal Rate

Which type of interest rate remains the same throughout the life of the loan?

What is the meaning of 'Amortization' in the context of loans?

• A) The process of paying off debt with a fixed repayment schedule in regular installments over time

• B) The process of increasing the loan amount over time

• C) The process of changing the interest rate of the loan periodically

• D) The process of transferring the loan to another person

What is a 'Principal' in a loan?

• A) The original sum of money borrowed in a loan

• B) The person who approves the loan

• C) The interest rate applied to the loan

• D) The time period for which the loan is taken

Tags

CCSS.5.NBT.A.2

What is an 'Unsecured Loan'?

• A) A loan that requires collateral

• B) A loan that is backed by a government guarantee

• C) A loan given without any background checks

• D) A loan that does not require collateral

Money that is borrowed and expected to be paid back with interest

• Loan

• Credit

• Bankruptcy

• Lender

The person, bank or company who you are borrowing money from

• Loan

• Principal

• Interest

• Lender

Tags

CCSS.RI.9-10.4

CCSS.RI.9-10.4

CCSS.RI.11-12.4

CCSS.RI.7.4

CCSS.RI.8.4

An installment loan that provides money for a car

• Personal Loan

• Auto Loan

• Mortgage

• Student Loan

An installment loan that provides money for a house

• Personal Loan

• Auto Loan

• Mortgage

• Student Loan