Chapter 8 Vocabulary

What is the definition of a "loan"?

• A claim on property as security for payment of a debt

• Something of value used as security for a loan

• To let someone borrow something, such as money

What does "mortgage" refer to?

• A set amount of time

• A loan used to buy a home

• A claim on property

Which term describes a business or organization that loans money to people?

• Loan

• Mortgage

• Lending institution

• Cosigner

What is a "lien"?

• A loan contract signed by a borrower and a cosigner

• Something of value used as security for a loan

• A claim on property or other things you own, which guarantees your payment of debt

What does "collateral" mean in financial terms?

• A claim on property as security for payment of a debt

• Something of value used as security for a loan

• A business that loans money

What does "qualify" mean?

• To make something less strong or less general by adding a detail or explanation to it

• To show you are able to take on a responsibility, job, or task, such as repaying a loan.

• To quantify

What is a "term"?

• A 'term' is a type of musical instrument.
• A 'term' is a set amount of time.

• A 'term' is a type of animal.

What is a "cosigner"?

• A cosigner is a person who guarantees the borrower's credit score.
• A cosigner is a person who receives a loan from the borrower.
• A cosigner is someone who signs a loan contract with a borrower and promises to pay back the loan if the borrower doesn't pay.