Consumer Loans Review
Quiz by Mitzi Glasgow
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- Q1
The interest or money that is charged a borrower for the use of credit is the _____.
Capital
Collateral
Principal
Finance charge
30s - Q2
The amount borrowed is known as the ________________.
capital
interest
principal
credit
30s - Q3
Which of the following is not an advantage of using credit?
It is useful in emergency situations.
It is convenient.
It is safer than carrying large sums of cash.
It allows you to shop only at one store.
30s - Q4
Property you possess that is worth more than your debts is called _____________________.
collateral
capital
interest
principal
30s - Q5
A loan for which the borrower pledges property to ensure repayment is a(n) ____.
Secured loan
Installment purchase agreement
Prorated loan
Contract
30s - Q6
Property pledged to assure repayment of a loan is ____.
Collateral
Capital
Character
Capacity
30s - Q7
With an adjustable-rate mortgage, the interest rate changes in response to the movement of ____ as a whole.
property availability
property values
the political situation
the economy
30s - Q8
The difference between the market value of property and the amount owed on it is called ____.
Acceptance
Adjustable rate
Closing cost
Equity
30s - Q9
Which of the following is a finance charge equal to one percent of the loan amount?
Lien
Point
Mortgage
Closing cost
30s - Q10
The portion of the purchase price that the buyer deposits as evidence of good faith is called ____.
Earnest money
Offer
Acceptance
Escrow
30s - Q11
A formal document that expresses interest in entering into a contract with someone is a(n) ____.
Lien
Counteroffer
Offer
Acceptance
30s - Q12
Which of the following terms refers to the state of the economy that can affect your ability to repay a debt, including job security?
Capital
Collateral
Capacity
Conditions
30s - Q13
Which of the following terms refers to property or possessions used as security for payment of a debt?
Conditions
Collateral
Capacity
Capital
30s - Q14
Which of the following gives a loan against the value of a possession that is sold if the loan is not repaid?
Finance company
Loan shark
Pawnbroker
Private lender
30s - Q15
The portion of your loan payment that reduces your loan balance is
Interest
Principal
Amortization
Rate
30s