WorksheetsCredit & Debt Vocab Quiz (L1-L3)
Total questions: 15
Worksheet time: 1hrs 15mins
Debt is best described as:
A gift of money from a friend
Money owed to another person or company
Money earned through investments
A type of savings account
Revolving credit means:
The loan balance disappears after one payment
Credit that renews automatically whenever you make a payment
A fixed loan with equal monthly payments
Interest that decreases each year
Collateral serves what purpose in a loan?
It increases interest rates
It’s property pledged to secure repayment
It’s the amount borrowed
It replaces a down payment
A lien gives the lender:
Ownership of your checking account
A legal claim to your asset until the debt is repaid
The ability to charge higher fees
A tax advantage
Which asset below is most likely an appreciating asset?
A home that gains value over time
A used car
A television
A smartphone
Default happens when a borrower:
Applies for a new credit card
Fails to repay a loan on time
Pays more than the minimum
Changes lenders mid-loan
Which best defines predatory lending?
Lending that offers rewards and perks
Deceptive or unfair practices targeting desperate borrowers
Lending that helps build good credit
Student loan forgiveness programs
A credit bureau is:
A government agency controlling taxes
A company that collects and sells credit information to lenders
A credit-card company
A debt-collection agency
Loan repaid in equal monthly payments
Difference between a home’s market value and the amount owed
Asset that loses value over time
Number that represents a person’s creditworthiness
When you fail to make your loan payments on time, you are said to be in (a) .
The more your home’s value increases while your mortgage balance decreases, the more (a) you gain.
A car that loses value each year is considered a (a) asset.
