WorksheetsBorrowing Basics Unit Test Review
Total questions: 21
Worksheet time: 11mins
Which of these is a for-profit financial institution licensed to receive deposits and make loans?
Bank
Credit Union
Business Lender
Credit Card Issuer
Which of these is a member-owned nonprofit cooperative financial institution?
Bank
Credit Union
Business Lender
Credit Card Issuer
Which of these is a short-term, high cost loans due on the next payday?
Promissory Note
Payday Loan
Unsecured Loan
Title Loan
Which of these require the borrower to offer collateral as securement provided to the lender?
Promissory Note
Bank
Unsecured Loan
Title Loan
Which of these contain written promise of, and plans for, repayment?
Promissory Note
Title Loan
Unsecured Loan
IOU
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?
Credit
Interest
Principle
Collateral
What term refers to the process of borrowing money from an individual or investor without a bank’s consent?
Peer-to-peer Lending
Hacking
Micro lending
Collateral Lending
What term refers to a valuable possession the borrower offers to lender for securement of the loan provided?
Title Loan
Asset
Liability
Collateral
What term refers to anything an individual owns which has monetary value?
Title Loan
Assets
Liability
Collateral
What term refers to the obligations an individual has to pay?
Title Loan
Assets
Liability
Collateral
Which of these is the process of paying off a loan over time with regular, equal payments?
Amortized Loan
Collateral Loan
Credit Loan
Mortgage
Which of these is an amount of money charged by the lender for borrowing money?
Asset
Principle
Interest
Collateral
Which of these is the gap between when the credit card’s billing cycle closes and when the bill becomes due?
Down Payment
Credit Payment
Grace Period
Principle Period
Which of these is a portion of the initial payment made for a purchase?
Down Payment
Credit Payment
Grace Period
Principle Period
Which of these is a loan distributed by banks to allow consumers to buy homes they cannot pay for upfront?
Amortized Loan
Principle Loan
Mortgage
Collateral Loan
Which of these are the rates charged by the lender for the use of money?
Loan Rates
Credit Rates
Interest Rates
Collateral Rates
Which of these is the original sum of money borrowed in a loan?
Collateral
Interest
Principle
Lien
What type of credit is a loan guaranteed to be paid back by putting a lien on an asset of the borrower?
Revolving Credit
Unsecured Credit
Collateralized Credit
Installment Credit
What type of credit is issued and supported by a borrower’s reliability, rather than value of an asset?
Revolving Credit
Unsecured Credit
Collateralized Credit
Installment Credit
What type of credit involves a maximum amount being loaned to the borrower by the creditor?
Revolving Credit
Unsecured Credit
Collateralized Credit
Installment Credit
What type of credit allows the borrower to be loaned a certain amount of money for a set period of time?
Revolving Credit
Unsecured Credit
Collateralized Credit
Installment Credit
