WorksheetsTypes of Credit
Total questions: 25
Worksheet time: 13mins
Name
Class
Date
1.
Which type of loan is meant to cover medical expenses?
a)
Personal Loan
b)
Auto Loan
c)
Student Loan
d)
Medical Loan
2.
What is the purpose of overdraft protection?
a)
Preventing declined transactions
b)
Increasing credit limit
c)
Avoiding interest fees
d)
Investing in stocks
3.
What is the main purpose of a credit card?
a)
Paying off debt
b)
Investing in stocks
c)
Saving money
d)
Borrowing money for purchases
4.
What is the purpose of a cash advance?
a)
Paying off debt
b)
Withdrawing cash using a credit card
c)
Starting a business
d)
Investing in real estate
5.
Which type of loan has a large final payment at the end?
a)
Student Loan
b)
Balloon Loan
c)
Auto Loan
d)
Mortgage
6.
Which type of loan is used for covering emergencies until the next paycheck?
a)
Personal Loan
b)
Auto Loan
c)
Payday Loan
d)
Student Loan
7.
Which type of loan has fixed payments over time?
a)
Personal Loan
b)
Auto Loan
c)
Installment Loan
d)
Student Loan
8.
What is the repayment term for a mortgage?
a)
Few months
b)
Several years
c)
Indefinite
d)
Lifetime
9.
What type of loan is used for buying a car?
a)
Mortgage
b)
Auto Loan
c)
Personal Loan
d)
Student Loan
10.
Which loan is specifically designed for college expenses?
a)
Personal Loan
b)
Auto Loan
c)
Mortgage
d)
Student Loan
11.
Which type of loan is backed by collateral?
a)
Student Loan
b)
Personal Loan
c)
Unsecured Loan
d)
Secured Loan
12.
Which type of loan is used for home improvements or debt consolidation?
a)
Auto Loan
b)
Personal Loan
c)
Student Loan
d)
Mortgage
13.
Which loan is used for starting or growing a business?
a)
Student Loan
b)
Business Loan
c)
Auto Loan
d)
Personal Loan
14.
What is the purpose of a peer-to-peer loan?
a)
Buying a car
b)
Starting a business
c)
Covering emergencies
d)
Borrowing money directly from individuals online
15.
Which type of loan is specifically for buying a home?
a)
Personal Loan
b)
Auto Loan
c)
Mortgage
d)
Student Loan
16.
What is the purpose of a payday loan?
a)
Covering college expenses
b)
Buying a car
c)
Starting a business
d)
Covering emergencies until the next paycheck
17.
Which type of loan is borrowed against your home's value?
a)
Mortgage
b)
Personal Loan
c)
HELOC
d)
Auto Loan
18.
What is the purpose of a retail installment contract?
a)
Buying goods or services from retailers on credit
b)
Investing in stocks
c)
Covering medical expenses
d)
Paying off student loans
19.
What is the purpose of a bridge loan?
a)
Buying a car
b)
Covering medical expenses
c)
Buying a new home before selling the old one
d)
Starting a business
20.
What is the purpose of a store credit card?
a)
Buying from specific stores on credit
b)
Covering medical expenses
c)
Investing in real estate
d)
Paying off student loans
21.
What type of loan allows you to borrow money up to a certain limit and only pay interest on the amount you use?
a)
Peer-to-Peer Loan
b)
Personal Loan
c)
Credit Card
d)
Payday Loan
22.
Which borrowing option is typically considered a short-term, high-interest loan that is meant to be repaid on the borrower's next payday?
a)
Auto Loan
b)
Payday Loan
c)
Personal Loan
d)
Mortgage
23.
What type of loan is specifically designed to help individuals consolidate their existing debts into a single, more manageable payment?
a)
Auto Loan
b)
Business Loan
c)
Student Loan
d)
Debt Consolidation Loan
24.
Which borrowing option involves individuals lending money to one another through online platforms, cutting out traditional financial institutions?
a)
Credit Card
b)
Peer-to-Peer Loan
c)
Personal Loan
d)
Mortgage
25.
What type of loan is typically used to cover the cost of purchasing a vehicle, with the vehicle itself serving as collateral for the loan?
a)
Medical Loan
b)
Student Loan
c)
Auto Loan
d)
Personal Loan
100 %
