Quiz on Debt and Credit

What is the term for money owed to another person or company?

• Equity

• Collateral

• Debt

• Lien

Which type of credit automatically renews whenever a payment is made to reduce the debt?

• Installment Credit

• Revolving Credit

• Default

• Appreciating Asset

What is a legal claim against an asset until the debt is repaid?

• Lien

• Debt

• Equity

• Default

What is an asset that increases in value over time called?

• Default

• Appreciating Asset

• Installment Credit

• Collateral

What is it called when you fail to repay a loan on time?

• Default

• Collateral

• Installment Credit

• Appreciating Asset

Which of the following is not a type of credit?

• Revolving Credit

• Installment Credit

• Appreciating Asset

• Default

What is a Credit Score?

• A number representing a consumer's creditworthiness

• A list of all debts a person owes

• A report of a person's income

• A summary of a person's assets

What is the role of a Credit Bureau?

• To provide loans to consumers

• To collect and provide credit rating information

• To manage personal savings accounts

• To offer investment advice

What does the term Principal refer to in finance?

• The interest on a loan

• The original amount of a loan

• The total amount after interest

• The monthly payment amount

What does the Term of a loan refer to?

• The interest rate

• The amount of time for making payments

• The total loan amount

• The monthly payment