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WorksheetsBorrowing Basics
Total questions: 12
Worksheet time: 6mins
Which of the following requires the borrower to offer a securement to the lender, in case they do not repay the loan?
Paycheck
Collateral
Credit card
Character
Which of the following is an example of revolving credit?
Student Loan
Auto Loan
Mortgage
Credit card
Which of the following credit scores are considered fair?
690 to 719
Above 720
630 to 689
Below 600
Which of the following is the first step of the borrowing process?
Selecting the right loan program
Applying for a loan
Processing the loan
Determining the amount to borrow
Which of the following is a short-term, high-interest loan designed to bridge the gap from one paycheck to the next?
Personal loan
Payday loan
Mortgage
Student loan
Which of the following is the annual or yearly rate charged for borrowing or earning through an investment?
Annual percentage rate
Variable interest rate
Interest rate
Fixed interest rate
Which of the following involves a lending institution allowing a consumer to borrow money and then pay back some or all of it each month?
Payday loan
Interest
Income statement
Credit card
Which of the following is NOT an impact of credit decisions?
Collateralized statement
Net worth statement
Income statement
Monthly budget
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 provides international banking to multinational corporations?
Federal bank
Merchant bank
Peer-to-peer lending
Interest banking
Which of the following types of credit is issued and supported by a borrower’s reliability, rather than the value of an asset?
Collateralized credit
Revolving credit
Unsecured credit
Installment credit
Which of the following is the gap between when the credit card’s billing cycle closes and when the bill becomes due?
Grace period
Prepayment penalty
Cash advance
Late payments
