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26.2 Business reading check

Total questions: 16

Worksheet time: 8mins

Name
Class
Date
1.

An interest rate that fluctuates or changes is called a(n) ____________rate.

a)

elastic

b)

unrestricted

c)

flexible

d)

variable

2.

With a fixed rate mortgage the interest rate __________

a)

always remains the same

b)

changes as the balance decreases

c)

is fixed at the beginning of each year

d)

is set by the government

3.

The $500 you pay on the day you purchase a used car for $5,000 is called the _________

a)

down payment

b)

minimum payment

c)

first installment

d)

security deposit

4.

The amount of borrowed money that is still owed is called


-----------------.

a)

balance

b)

principal

c)

maximum payment

d)

remainder

5.

The amount the lender charges the borrower to finance a loan is the __________

a)

fee for service

b)

origination fee

c)

finance charge

d)

service charge

6.

A mortgage is an example of a(n) ________loan.

a)

insecure loan

b)

secured loan

c)

secure loan

d)

unsecured loan

7.

The term used to describe the action of a creditor taking back collateral is _______________ .

a)

reclaim

b)

repossess

c)

refinance

d)

reposition

8.

When a court orders an employer to send a portion of an employee’s paycheck to a creditor it is called __________

a)

automatic payment

b)

garnishment of wages

c)

court ordered diversion

d)

third party intervention

9.

You should not use more than ________________ percent of your income for credit payments.

a)

20

b)

50

c)

40

d)

75

10.

When a consumer with a low credit rating gets a loan, the interest rate may be ____________.

a)

fixed

b)

lower

c)

higher

d)

similar

11.

The ____________determines the cost of credit on a yearly basis.

a)

cash advance

b)

APR annual percentage rate

c)

commercial loan rate

d)

credit limit

12.

A __________is a loan given in cash by a credit card company in anticipation of the borrower's being able to repay the loan

a)

grace period

b)

variable rate

c)

fixed rate

d)

cash advance

13.

A ___________is an amount of time allowed to repay a debt without having to pay interest charges

a)

grace period

b)

down payment

c)

credit limit

d)

principal

14.

A(n) _____________ is an interest rate that fluctuates or changes over the life of a loan

a)

fixed rate

b)

variable rate

c)

secured loan

d)

unsecured loan

15.

_________________is the amount of borrowed money that is still owed and on which interest is based.

a)

finance charge

b)

down payment

c)

variable rate

d)

principal

16.

The ______is the total amount it costs the borrower to have a lender finance a loan

a)

principal

b)

down payment

c)

finance charge

d)

cosigner