4.2 Notes/Vocab Quiz

Loan sharks are

(a)  

​ (a)   are organizations that extend loans. These are business that make profit by charging ​ (b)   .

• Lending Institutions
• Interest
• penalties
• principal

The ​ (a)   the interest rate the LESS you pay. The ​ (b)   the interest rate the MORE you pay.

• lower
• higher

Which of the following is the name of the agreement that you must sign when you borrow money?

• promissory note

• decleration

• cosigner

• agreement

Who is the person that agrees to pau back the loan if the borrower is unable to do so?

• cosigner

• spouse

• parent

• sibling

The ​ (a)   allows the borrower to make payments before the due date to reduce the amount of interest. ​ (b)   requires borrowers to pay a fee if they wish to pay back an entire loan before the due date.

• prepayment privilege
• Prepayment penalty
• prepayment
• wage assignment

The amount of money that you borrow is called the

(a)  

Which is the least likely lending institution to be used by any individual?

• Bank

• Credit Union

• Consumer Finance Company

• Pawn Shop

The ____________ requires a lender to give you the reason in writing for the loan denial.

• Fair Credit Reporting Act

• Equal Credit Opportunity Act

• Truth in Lending Act

• Fair Credit Billing Act

Which of the following categories make up most of your credit score?

• Number of recent hard inquires

• Average length of your credit history.

• Number of active credit accounts

• payment history and utilization.