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WorksheetsCredit II Vocabulary
Total questions: 38
Worksheet time: 13mins
Name
Class
Date
1.
An arrangement to receive cash, goods, or services now and pay for them in the future.
a)
Credit
b)
Debt
c)
Liability
d)
Income
2.
The use of credit for personal needs.
a)
Consumer credit
b)
Consumer debt
c)
Liability
d)
Lien
3.
A type of revolving credit where the borrower uses a card to purchase items or borrow money up to a designated credit limit and pay the loan back over time.
a)
Credit card
b)
Debt Card
c)
ATM Card
d)
Gift Card
4.
Accounts that allow the borrower to charge up to the limit, pay some, and continue to charge without a set ending time period.
a)
Revolving accounts
b)
Installment account
c)
Secured loan
d)
Closed-end credit
5.
An amount borrowed from a lender.
a)
Loan
b)
Income
c)
Line of credit
d)
Capital
6.
The original amount borrowed.
a)
Principal
b)
Balance
c)
Debt
d)
Income
7.
Current amount owed on a debt.
a)
Balance
b)
Principal
c)
Capital
d)
Dividend
8.
Loans that require security in the form of collateral that can be taken if the borrower is unable to pay.
a)
Secured loans
b)
Unsecured loan
c)
Revolving credit
d)
Open-end credit
9.
Occurs when a creditor can take one or more of your personal possessions as security or in payment of debt.
a)
Lien
b)
Debt
c)
Credit
d)
Closed-end credit
10.
Loans made without the borrower offering any specific assets as security for the loan with lending based solely on the borrower's credit rating.
a)
Unsecured loans
b)
Secured loans
c)
Title loans
d)
Payday loans
11.
An entity that lends money.
a)
Creditor
b)
Borrower
c)
Broker
d)
Insurer
12.
An amount owed to a lender.
a)
Debt
b)
Credit
c)
Lien
d)
$500
13.
A loan for a specific amount that must be paid in full, plus interest, by a certain date.
a)
Closed-end credit
b)
Open-end credit
c)
Revolving credit
d)
Lien
14.
An agreement with a lender to borrow up to a maximum amount of money for goods and services and to keep borrowing up to the maximum whenever credit is available.
a)
Open-end credit
b)
closed-end credit
c)
Revolving credit
d)
Layaway
15.
The maximum amount that a person can borrow on a credit account.
a)
Line of credit
b)
APR
c)
Consumer credit
d)
Lien
16.
The time between the date a customer is billed and the date the payment is due when no interest is charged to your account.
a)
Grace period
b)
Minimum monthly payment
c)
30-day account
d)
20/10 Rule
17.
The total dollar amount you pay to use credit.
a)
Finance charge
b)
Interest rate
c)
Late fee
d)
35
18.
The amount of interest a borrower will be charged on credit each year.
a)
Annual Percentage Rate (APR)
b)
Miniumum monthly payment
c)
0.1%
d)
0.2%
19.
The price paid for the use of credit.
a)
Interest
b)
Collateral
c)
Title
d)
APR
20.
Interest paid only on the principal.
a)
Simple interest
b)
Compound Interest
c)
Collateral
d)
Finance Charge
21.
The process in which interest is earned on both the principal and on any previously earned interest.
a)
Compound interest (compounding)
b)
Simple interest
c)
Minimum
d)
Complex
22.
The smallest amount that a borrower can pay on an amount owed and remain a borrower in good standing.
a)
Minimum monthly payment
b)
Full payment
c)
$50
d)
$10
23.
A measure of a person's ability and willingness to make credit payments on time.
a)
Credit rating
b)
Income
c)
Capacity
d)
Capital
24.
Agreeing to be responsible for another person's loan payments if that person fails to make them.
a)
Cosigning
b)
Signing
c)
Parternering
d)
Proprietorship
25.
A legal process to get out of debt when you can no longer make your required payments and some or all of your assets are distributed among the creditors.
a)
Bankruptcy
b)
Foreclosure
c)
Garnishment
d)
Repossession
26.
The act of selling one’s personal possessions to repay a debt.
a)
Liquidation
b)
Bartering
c)
Borrowing
d)
Investing
27.
Loan
a)
Finance
b)
Payback
c)
Invest
d)
Sell
28.
Document showing ownership
a)
Title
b)
Contract
c)
Personal Property Inventory
d)
Income Statement
29.
Take back/take possession of property
a)
Repossess/Foreclose
b)
Evict
c)
Garnishment
d)
Steal
30.
Elements that a lender evaluates when considering whether or not to lend money to a customer.
a)
Five Cs of Credit
b)
Rules of Banking
c)
Rule of 72
d)
20/10 Rule
31.
Refers to a borrower's history of paying obligations. Will you repay the loan?
a)
Character
b)
Capacity
c)
Capital
d)
Collateral
32.
Refers to a borrower's ability to repay debt, usually measured by current income and level of outstanding debt. Can you repay the loan?
a)
Capacity
b)
Capital
c)
Character
d)
Conditions
33.
Savings and other assets one can use for financial transactions, such as repaying debts or purchasing items. Also refers to goods or man-made things that help people do their jobs better. What are your assets and net worth?
a)
Capital
b)
Conditions
c)
Character
d)
Collateral
34.
An item of value pledged as a guarantee (security) for payment of a loan which can be repossessed by the lender if the loan is not paid back. What if you do not repay the loan?
a)
Collateral
b)
Capital
c)
Conditions
d)
Character
35.
Refers to other circumstances that may impact the ability to obtain credit. What if your job is insecure?
a)
Conditions
b)
Capacity
c)
Collateral
d)
Character
36.
Bankruptcy where you have to sell your assets and all of your debts are discharged.
a)
Chapter 7
b)
Chapter 13
c)
Chapter 12
d)
Chapter 11
37.
Bankruptcy that allows you to reorganize your debts by setting up a payment plan to pay them off in 3-5 years.
a)
Chapter 7
b)
Chapter 11
c)
Chapter 13
d)
Chapter 15
38.
Funding for a loan.
a)
Finance
b)
Lien
c)
Debit
d)
Credit
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