Borrowing Basics - Final Assessment

Which of the following provides international banking to multinational corporations?

• Federal bank

• Merchant bank

• Peer-to-peer lending

• Interest banking

Which of the following requires the borrower to offer a securement to the lender, in case they do not repay the loan?

• Credit card

• Collateral

• Character

• Paycheck

Which of the following is NOT a credit report mistake which can occur?

• Incorrect payment status

• Outdated information

• Recent public records

• Misinformation of personal records

Which of the following is NOT considered a bad borrowing habit?

• Spending more than can be earned

• Ignoring credit reports

• Failing to budget

• Reviewing debt periodically

Which of the following is an example of revolving credit?

• Credit card

• Student loan

• Mortgage

• Auto loan

Which of the following credit scores are considered fair?

• Below 600

• 630 to 689

• 690 to 719

• Above 720

Which of the following is also known as social lending or crowd lending?

• Peer-to-peer lending

• Pay day lending

• Title loans

• Collateral

Which of the following is NOT a way to reduce the borrowing cost of a loan?

• Shortening the length of term

• Shopping around for a low interest rate

• Putting down a higher down payment

• Making a lower principal payment

Which of the following types of loan is issued when the borrower promises an asset of equal or higher value for the loan?

• Collateralized loan

• Pay day loan

• Interest loan

• Peer-to-peer loan

Which of the following is the first step of the borrowing process?

• Applying for a loan

• Selecting the right loan program

• Determining the amount to borrow

• Processing the loan