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Types of credit review

Total questions: 10

Worksheet time: 7mins

Name
Class
Date
1.

The Process of paying off a debt in regular installments over a period of time is known as...

a)

Authorized user

b)

Payday loan

c)

Amorization

d)

None of these

2.

The smallest amount you can pay each month to keep your credit card in good standing is called the (a)   However, it's recommended that you pay your balance in full each month.

3.

Amanda has taken out a(n) ________, which has an interest rate that changes based on the market, As a result, her monthly payments change.

a)

Variable-rate loan

b)

Down payment

c)

Payday loan

d)

Term

4.

A(n) (a)   is often considered a risky option for emergency cash because it needs to be repaid by your next paycheck and has a high interest rate.

5.

To purchase their first home, the Thompsons took out a(n)

(a)  

6.

Jenny's mother added her as a(n) __________ ____ on her credit card account so Jenny could build a credit history under supervision

a)

Payday Loan

b)

Down Payment

c)

Term

d)

Authorized user

7.

A car loan is an example of _______ ____, where the loan is backed by collateral, If payments are not made, the lender can seize the car itself.

a)

Minimum payment

b)

Secured debt

c)

Down payment

d)

Variable rate loan

8.

When buying a new car, Michael was required to pay 20% of the car's price upfront as a(n) _______, reducing the amount he needed to borrow.

a)

Down payment

b)

Principal

c)

Credit limit

d)

Payday loan

9.

The ______ is the amount of money you borrow from a lender. The ____ is the amount you are charged to borrow that money. The _____ is how long you have to pay the money back, with interest, to the lender.

a)

Interest, Principal, Term

b)

Principal, Interest, Term

c)

Term, Interest, Principal

10.

The maximum amount of money that can be charged to a credit card is known as the ____

a)

Credit limit

b)

Principal

c)

Mortgage