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Borrowing Basics Unit Test Review

Total questions: 21

Worksheet time: 11mins

Name
Class
Date
1.

Which of these is a for-profit financial institution licensed to receive deposits and make loans?

a)

Bank

b)

Credit Union

c)

Business Lender

d)

Credit Card Issuer

2.

Which of these is a member-owned nonprofit cooperative financial institution?

a)

Bank

b)

Credit Union

c)

Business Lender

d)

Credit Card Issuer

3.

Which of these is a short-term, high cost loans due on the next payday?

a)

Promissory Note

b)

Payday Loan

c)

Unsecured Loan

d)

Title Loan

4.

Which of these require the borrower to offer collateral as securement provided to the lender?

a)

Promissory Note

b)

Bank

c)

Unsecured Loan

d)

Title Loan

5.

Which of these contain written promise of, and plans for, repayment?

a)

Promissory Note

b)

Title Loan

c)

Unsecured Loan

d)

IOU

6.

What term refers to when goods, services or money is received in exchange for a promise to pay a definite sum of money at a future time?

a)

Credit

b)

Interest

c)

Principle

d)

Collateral

7.

What term refers to the process of borrowing money from an individual or investor without a bank’s consent?

a)

Peer-to-peer Lending

b)

Hacking

c)

Micro lending

d)

Collateral Lending

8.

What term refers to a valuable possession the borrower offers to lender for securement of the loan provided?

a)

Title Loan

b)

Asset

c)

Liability

d)

Collateral

9.

What term refers to anything an individual owns which has monetary value?

a)

Title Loan

b)

Assets

c)

Liability

d)

Collateral

10.

What term refers to the obligations an individual has to pay?

a)

Title Loan

b)

Assets

c)

Liability

d)

Collateral

11.

Which of these is the process of paying off a loan over time with regular, equal payments?

a)

Amortized Loan

b)

Collateral Loan

c)

Credit Loan

d)

Mortgage

12.

Which of these is an amount of money charged by the lender for borrowing money?

a)

Asset

b)

Principle

c)

Interest

d)

Collateral

13.

Which of these is the gap between when the credit card’s billing cycle closes and when the bill becomes due?

a)

Down Payment

b)

Credit Payment

c)

Grace Period

d)

Principle Period

14.

Which of these is a portion of the initial payment made for a purchase?

a)

Down Payment

b)

Credit Payment

c)

Grace Period

d)

Principle Period

15.

Which of these is a loan distributed by banks to allow consumers to buy homes they cannot pay for upfront?

a)

Amortized Loan

b)

Principle Loan

c)

Mortgage

d)

Collateral Loan

16.

Which of these are the rates charged by the lender for the use of money?

a)

Loan Rates

b)

Credit Rates

c)

Interest Rates

d)

Collateral Rates

17.

Which of these is the original sum of money borrowed in a loan?

a)

Collateral

b)

Interest

c)

Principle

d)

Lien

18.

What type of credit is a loan guaranteed to be paid back by putting a lien on an asset of the borrower?

a)

Revolving Credit

b)

Unsecured Credit

c)

Collateralized  Credit

d)

Installment Credit

19.

What type of credit is issued and supported by a borrower’s reliability, rather than value of an asset?

a)

Revolving Credit

b)

Unsecured Credit

c)

Collateralized  Credit

d)

Installment Credit

20.

What type of credit involves a maximum amount being loaned to the borrower by the creditor?

a)

Revolving Credit

b)

Unsecured Credit

c)

Collateralized  Credit

d)

Installment Credit

21.

What type of credit allows the borrower to be loaned a certain amount of money for a set period of time?

a)

Revolving Credit

b)

Unsecured Credit

c)

Collateralized  Credit

d)

Installment Credit