CH4 Vocabulary Credit and Debt Quiz

What is an appreciating asset?

• An asset that increases in value over time
• An asset that decreases in value over time
• An asset that has a fixed value
• An asset that has no value

What is collateral?

• Money owed to another person or company
• A company that collects credit rating information
• Something owned offered as security on a debt
• The increase in value of a home over time

What is a credit bureau?

• An asset that increases in value over time
• A company that collects credit rating information
• Money owed to another person or company
• A loan for a fixed amount of money

What is a credit score?

• The additional cost a lender charges for borrowing their money
• A statistical number used to represent a consumer's creditworthiness
• The loss of value of an asset over time
• The original amount of a loan

What is debt?

• An asset that increases in value over time
• Something owned offered as security on a debt
• Money owed to another person or company
• The increase in value of a home over time

What is a default?

• An asset that increases in value over time
• Failure to repay a loan on time
• The loss of value of an asset over time
• The original amount of a loan

What is a depreciating asset?

• An asset that increases in value over time
• An asset that decreases in value over time
• An asset that has a fixed value
• An asset that has no value

What is depreciation?

• The additional cost a lender charges for borrowing their money
• A legal claim against an asset until the debt is repaid
• The loss of value of an asset over time
• The original amount of a loan

What is equity?

• An asset that increases in value over time
• Something owned offered as security on a debt
• The increase in value of a home over time
• A loan for a fixed amount of money

What is installment credit?

• An asset that increases in value over time
• A company that collects credit rating information
• A loan for a fixed amount of money
• Credit that automatically renews whenever a payment is made to reduce the debt