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Unit 4 Vocabulary Review

Total questions: 33

Worksheet time: 17mins

Name
Class
Date
1.

Which term refers to something valuable that the lender can take as payment if you can't or don't repay your secured loan?

a)

Collateral

b)

Cosigner

c)

Credit Limit

d)

Default

2.

Which loan combines two or more education loans into a single loan, allowing the borrower to make a single monthly payment?

a)

Consolidation Loan

b)

Direct Plus Loans

c)

Direct Subsidized Loan

d)

Credit Union

3.

Who legally agrees to take responsibility for a person's debt if they cannot repay it?

a)

Cosigner

b)

Collateral

c)

Credit Union

d)

Crowdfunding

4.

Which item allows you to make purchases now with borrowed money and then repay the lender in one lump sum or in monthly payments with interest?

a)

Credit Card

b)

Debit Card

c)

Credit Limit

d)

Credit Card Agreement

5.

What is the legal document that outlines the terms and conditions for using your credit card?

a)

Credit Card Agreement

b)

Credit Limit

c)

Credit Union

d)

Default

6.

What is the maximum amount that may be borrowed on a credit card called?

a)

Credit Limit

b)

Credit Card Agreement

c)

Collateral

d)

Consolidation Loan

7.

Which term describes a nonprofit financial institution that is owned by its members and organized for their benefit?

a)

Credit Union

b)

Crowdfunding

c)

Direct Plus Loans

d)

Default

8.

What is the practice of funding a project or venture by raising many small amounts of money from a large number of people, typically via the Internet?

a)

Crowdfunding

b)

Consolidation Loan

c)

Direct Subsidized Loan

d)

Collateral

9.

Which card is directly connected to your checking account and enables ATM transactions and purchases instead of using cash or writing a check?

a)

Debit Card

b)

Credit Card

c)

Direct Plus Loans

d)

Credit Union

10.

What term describes the long-term failure to repay a loan according to the terms agreed to, which substantially harms the borrower's credit score?

a)

Default

b)

Consolidation Loan

c)

Crowdfunding

d)

Collateral

11.

Which federal loan is available to graduate or professional students and eligible parents of dependent undergraduate students to help pay for education at participating schools?

a)

Direct Plus Loans

b)

Direct Subsidized Loan

c)

Consolidation Loan

d)

Credit Card

12.

Which federal student loan is available to undergraduate students, with the federal government paying interest as long as the student is in school at least part-time?

a)

Direct Subsidized Loan

b)

Direct Plus Loans

c)

Credit Card

d)

Credit Limit

13.

Select the term that matches this definition: The smallest amount of a credit card bill that a credit card holder must pay during a billing cycle to remain in good standing with the lender.

a)

Minimum Payment

b)

Penalty APR

c)

Principal

d)

Net Price

14.

Select the term that matches this definition: A method of lending very small sums to individuals, typically in developing countries, to start or expand a small business.

a)

Peer-To-Peer Lending

b)

Micro Credit

c)

Personal Loan

d)

Payday Loan

15.

Select the term that matches this definition: A loan taken by individuals and businesses to make real estate purchases without paying the entire value of the purchase up front.

a)

Mortgage

b)

Personal Loan

c)

Revolving Credit

d)

Secured Credit Card

16.

Select the term that matches this definition: The actual cost a student pays to attend a school, calculated as the sticker price minus grants and scholarships.

a)

Net Price

b)

Principal

c)

Schumer Box

d)

Point of Sale (POS)

17.

Select the term that matches this definition: A loan banks offer to their customers when they try to withdraw more funds than they have in their account, usually for a fee and with interest.

a)

Payday Loan

b)

Overdraft Protection

c)

Revolving Credit

d)

Personal Loan

18.

Select the term that matches this definition: A small loan, offered through a business, lent at a high interest rate, and meant to be paid as soon as you receive your next paycheck.

a)

Payday Loan

b)

Personal Loan

c)

Micro Credit

d)

Mortgage

19.

Select the term that matches this definition: A method of debt financing that enables individuals to borrow and lend money without the use of a financial institution as an intermediary.

a)

Peer-To-Peer Lending

b)

Revolving Credit

c)

Prepaid Debit Card

d)

Point of Sale (POS)

20.

Select the term that matches this definition: A higher interest rate triggered by being late with or missing a credit card payment.

a)

Penalty APR

b)

Minimum Payment

c)

Schumer Box

d)

Secured Credit Card

21.

Select the term that matches this definition: A card that is loaded with a specific cash amount before you use it. It is not linked to a bank or credit union account.

a)

Prepaid Debit Card

b)

Secured Credit Card

c)

Credit Card

d)

Point of Sale (POS)

22.

Select the term that matches this definition: Original amount of money borrowed, separate from interest or fees.

a)

Principal

b)

Minimum Payment

c)

Net Price

d)

Mortgage

23.

Select the term that matches this definition: A type of loan issued by a bank, credit union or online lender that you pay back in fixed monthly payments, typically over two to seven years.

a)

Personal Loan

b)

Payday Loan

c)

Mortgage

d)

Revolving Credit

24.

Select the term that matches this definition: A place where a customer makes the payment for goods or services and where sales taxes may become payable. The transaction can take place through a physical device or online through a digital system.

a)

Point of Sale (POS)

b)

Schumer Box

c)

Peer-To-Peer Lending

d)

Prepaid Debit Card

25.

Select the term that matches this definition: An open line of credit that can be used for any purchases as long as you are under the limit; its payments vary monthly based on size of the debt.

a)

Revolving Credit

b)

Personal Loan

c)

Mortgage

d)

Micro Credit

26.

Select the term that matches this definition: A standard table that legally must appear in a credit card agreement showing basic information about the card's rates and fees.

a)

Schumer Box

b)

Penalty APR

c)

Minimum Payment

d)

Point of Sale (POS)

27.

Select the term that matches this definition: A type of credit card that requires the borrower to pay the company a fixed, up-front amount of money as collateral, which becomes the credit limit of the card, thereby making it low-risk to the credit card company.

a)

Secured Credit Card

b)

Prepaid Debit Card

c)

Revolving Credit

d)

Personal Loan

28.

Select the definition that best matches Secured Debt.

a)

Debt tied to a specific tangible asset that can be used as collateral and repossessed if payments are not made

b)

A loan used to fund expenses connected with operating a small business

c)

A monthly record of account transactions provided by a credit card company

d)

Debt not tied to a specific asset, making repossession difficult or impossible if payments are not made

29.

Select the definition that best matches Small Business Loan.

a)

A loan used to fund expenses connected with operating a small business

b)

Debt tied to a specific tangible asset used as collateral

c)

A monthly record of transactions from a credit card company

d)

A loan in which the interest rate can change over the course of the loan

30.

Select the definition that best matches Statement.

a)

A monthly record of your account transactions provided by your credit card company electronically or on paper

b)

The amount of time you have to repay your entire loan

c)

Debt not tied to a specific asset, limiting the lender’s ability to repossess items

d)

A loan used to fund operating expenses for a small business

31.

Select the definition that best matches Term.

a)

The amount of time you have to repay your entire loan

b)

Debt tied to a specific tangible asset used as collateral

c)

A loan in which the interest rate can change based on prime or index rate

d)

A monthly record of account transactions from a credit card company

32.

Select the definition that best matches Unsecured Debt.

a)

Debt not tied to a specific asset, making it difficult or impossible for the lender to repossess items if payments are not made

b)

Debt tied to a specific tangible asset that can be repossessed if payments are not made

c)

A loan used to fund operating expenses for a small business

d)

A monthly record of your credit card account transactions

33.

Select the definition that best matches Variable-Rate Loan.

a)

A loan in which the interest rate can change, based on prime rate or index rate, over the course of the loan

b)

A loan used to fund expenses connected with operating a small business

c)

Debt tied to a specific tangible asset that serves as collateral

d)

The amount of time you have to repay your entire loan