Lending Products Lesson Quiz

What is the main objective for students in this lesson?

• To understand and learn common types of lending products

• To memorize historical dates

• To practice advanced mathematics

• To study world geography

What is a mortgage?

• A loan used to buy types of real estate

• A type of insurance for cars

• A savings account for retirement

• A credit card for shopping

Which of the following is a common type of mortgage where the interest rate stays the same for the entire loan term?

• Adjustable-rate mortgage (ARM)

• Fixed-rate mortgage

• Balloon mortgage

• Reverse mortgage

What is the typical term length for most mortgages?

• 1–5 years

• 5–10 years

• 15–30 years

• 40–50 years

Which type of mortgage is designed for special needs and is backed by the government?

• Fixed-rate mortgage

• Adjustable-rate mortgage (ARM)

• Government-backed mortgage (FHA, VA, USDA)

• Interest-only mortgage

What happens to the interest rate in an adjustable-rate mortgage (ARM)?

• It stays the same for the loan term

• It is always lower than fixed rates

• It can change over time

• It is set by the borrower

Which of the following is true about an auto loan?

• It is harder to get with bad credit.

• You will never own the car.

• It is easier to get with bad credit because the car is collateral.

• There are fees for mileage and damage.

Which of the following is a feature of leasing a car?

• Higher payments

• Fees for mileage and damage

• Easier to get with bad credit

• You own the car after the lease

If someone has bad credit, which option is generally easier for them to obtain?

• Leasing a car

• Auto loan

• Both are equally easy

• Neither is possible

Which of the following is a characteristic of unsecured credit?

• Backed by something valuable

• Lower interest rates

• Most lines of credit don’t need collateral

• Higher credit limits