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Credit Vocabulary Review

Total questions: 15

Worksheet time: 8mins

Name
Class
Date
1.

What is Secured Credit?

a)

Credit that is backed by collateral

b)

Credit that is not backed by collateral

c)

A type of revolving credit

d)

A type of installment credit

2.

What is Unsecured Credit?

a)

Credit that is backed by collateral

b)

Credit that is not backed by collateral

c)

A type of revolving credit

d)

A type of installment credit

3.

What is Revolving Credit?

a)

Credit that is paid in installments

b)

Credit that allows repeated borrowing

c)

Credit that is backed by collateral

d)

Credit that is not backed by collateral

4.

What is Installment Credit?

a)

Credit that is paid in installments

b)

Credit that allows repeated borrowing

c)

Credit that is backed by collateral

d)

Credit that is not backed by collateral

5.

What is a Loan?

a)

Money borrowed that must be repaid

b)

A type of revolving credit

c)

A type of unsecured credit

d)

A type of secured credit

6.

What does Debt Free mean?

a)

Having no outstanding debts

b)

Having a secured loan

c)

Having a revolving credit

d)

Having an installment credit

7.

What is a Debit?

a)

A deduction from a bank account

b)

A type of credit

c)

A type of loan

d)

A type of asset

8.

What is Collateral?

a)

An asset pledged for a loan

b)

A type of unsecured credit

c)

A type of revolving credit

d)

A type of installment credit

9.

What is a Home Equity Loan?

a)

A loan secured by the equity in a home

b)

A type of unsecured credit

c)

A type of revolving credit

d)

A type of installment credit

10.

What is an Appreciating Asset?

a)

An asset that increases in value

b)

An asset that decreases in value

c)

A type of loan

d)

A type of credit

11.

What is a Depreciating Asset?

a)

An asset that decreases in value

b)

An asset that increases in value

c)

A type of loan

d)

A type of credit

12.

What is an Annual Fee?

a)

A yearly charge for a service

b)

A monthly charge for a service

c)

A one-time charge for a service

d)

A daily charge for a service

13.

What is a Credit Limit?

a)

The maximum amount that can be borrowed

b)

The minimum amount that can be borrowed

c)

The average amount that can be borrowed

d)

The exact amount that must be borrowed

14.

What is an Overdraft?

a)

Spending more than what is in a bank account

b)

Spending less than what is in a bank account

c)

A type of loan

d)

A type of credit

15.

What is a Co-Signer?

a)

A person who agrees to repay a loan if the borrower does not

b)

A person who borrows money

c)

A person who lends money

d)

A person who manages a loan