Credit Vocab Part 1

William goes to a bank to get a loan for his new business. The bank lends him the money he needs. In this scenario, the bank is called a ________.

• Creditor

• Debtor

• Borrower

• Investor

Aria has a type of credit that is available up to a limit and automatically renewed as she pays off or pays down her debts. Most credit cards are a form of this type of credit. What type of credit does Aria have?

• Revolving Credit

• Installment Credit

• Secured Credit

• Open Credit

Abigail manages a bakery. She wants to know the maximum level of output of cakes and pastries that her bakery can potentially produce over a set period of time. This is called ________.

• Capacity

• Inventory

• Turnover

• Revenue

Priya is reviewing her credit card statement and notices a fee that represents the cost of borrowing money on her card. This fee is called a ________.

• Finance Charge

• Principal Payment

• Late Fee

• Down Payment

In a classroom, William notices that many students in his country share certain qualities, such as being respectful and hardworking. These shared qualities are called ________.

• Character

• Emotion

• Hobby

• Language

Grace is considering applying for a new credit card. She notices that the interest for new card holders is usually lower than traditional interest rates. This is called ________.

• Introductory rate

• Penalty rate

• Variable rate

• Annual fee

Ava receives money from her part-time job, an allowance from her parents, some gifts, and a little interest from her savings account. The income Ava receives (take-home pay, allowance, gifts, and interest) is called ________.

• Net Income

• Gross Expenses

• Fixed Costs

• Budget Deficit

Liam receives a book from Anika with a promise to return it or its equivalent. Liam is called a ________.

• Borrower

• Lender

• Owner

• Seller

Emma needs some quick cash, so she gives the lenders her automobile title in exchange for a set amount of money. The lender holds the title until Emma repays the loan. If she does not repay as agreed, the lender keeps the title to her car. This is called a ________.

• Title Loan

• Payday Loan

• Mortgage

• Personal Loan

Charlotte needs some quick cash to cover an unexpected expense before her next paycheck. She visits a lender who offers her a short-term loan by securing her written check or by getting authorization for automatic withdrawal from her bank account. This type of loan is called a ________.

• Payday Loan

• Mortgage Loan

• Auto Loan

• Student Loan