Indicate whether the statement is true or false. 1. A single-payment loan is repaid in one payment without interest.

• True

• False

Indicate whether the statement is true or false. 2. The length of time that money is borrowed is called the term.

• True

• False

Indicate whether the statement is true or false. 3. A promissory note is a contract between a borrower and lender.

• True

• False

Indicate whether the statement is true or false. 4. The exact interest method is more complicated than the ordinary interest method.

• True

• False

Indicate whether the statement is true or false. 5. You can calculate the interest rate on a loan if you know the principal, interest owed, and the term.

• True

• False

Installment loan payments typically include interest and a portion of the principal.

• True

• False

The amount a borrower pays up front when making a purchase is called a cash advance.

• True

• False

A payday loan is designed to be repaid when the borrower gets a job.

• True

• False

Unlike a scholarship, a grant is money for college that must be repaid.

• True

• False

Student loans are attractive because they don’t have to be repaid if the student graduates.

• True

• False