Loans and Interest Quiz

Something a bank or financial institution makes and charges you interest?

• time
• Loan
• rate
• sales tax

A sum paid or charged for the use of money

• interest
• time
• sales tax
• principal

Brenda's bank offers car financing for 3, 4, or 5 years.  If Brenda chooses 5-year financing, how many monthly payments will she have?

• 60
• 48
• 36
• 12

What happens when you miss a payment for a loan?

• Credit score goes up

• Credit Score goes down

It is a loan used to buy a home.

• credit

• debit

• mortgage

• lien

It is something of value used as a security for a loan

• lien

• mortgage

• loan

• collateral

A loan refers to something such as money that is borrowed.

• True

• False

What type of loan can you apply for extra money to pay for unexpected expenses such as medical bills?

• Student loan

• New car loan

• Mortgage

• Personal Loan

It is a claim on property or other things you own which guarantees your payment of debt.

• mortgage

• collateral

• lien

• credit

Amia borrowed $5,000 personal loan at 4% annual interest payable in 5 years. What is the term of the loan?

• $5,000

• 4%

• annual interest

• 5 years