Credit and Loans Quiz

What is a credit card?

• A contractual agreement whereby someone receives goods or services now and agrees to pay for them later.

• Various fees charged as a cost of credit.

• A type of loan or line of credit that establishes a credit limit, where funds can be borrowed and paid back over and over.

• A plastic card that is an electronic method of payment allowing the card owner to purchase goods and services on credit.

What is collateral?

• A contractual agreement whereby someone receives goods or services now and agrees to pay for them later.

• Personal property pledged as security against a loan.

• Various fees charged as a cost of credit.

• A type of loan or line of credit that establishes a credit limit, where funds can be borrowed and paid back over and over.

What is interest?

• Money that is charged for loaning money.

• Various fees charged as a cost of credit.

• A contractual agreement whereby someone receives goods or services now and agrees to pay for them later.

• A type of loan or line of credit that establishes a credit limit, where funds can be borrowed and paid back over and over.

What is a secured loan?

• A type of loan or line of credit that establishes a credit limit, where funds can be borrowed and paid back over and over.

• A loan where collateral is pledged against the loan.

• Various fees charged as a cost of credit.

• A contractual agreement whereby someone receives goods or services now and agrees to pay for them later.

What is an unsecured loan?

• A loan where no collateral is pledged against the loan.

• A type of loan or line of credit that establishes a credit limit, where funds can be borrowed and paid back over and over.

• A contractual agreement whereby someone receives goods or services now and agrees to pay for them later.

• Various fees charged as a cost of credit.

What is an annual percentage rate (APR)?

• A type of loan or line of credit that establishes a credit limit, where funds can be borrowed and paid back over and over.

• A contractual agreement whereby someone receives goods or services now and agrees to pay for them later.

• Various fees charged as a cost of credit.

• The total cost or total return for one year, expressed as a rate.

What is a rewards credit card?

• A credit card issued by a bank.

• A type of loan or line of credit that establishes a credit limit, where funds can be borrowed and paid back over and over.

• Various fees charged as a cost of credit.

• A credit card that offers various types of rewards for each transaction.

What is an installment loan?

• A loan where collateral is pledged against the loan.

• A type of loan where the borrower pays back the loan in fixed interval amounts.

• A type of loan or line of credit that establishes a credit limit, where funds can be borrowed and paid back over and over.

• A loan where no collateral is pledged against the loan.

What are late payment fees?

• Various fees charged as a cost of credit.

• A contractual agreement whereby someone receives goods or services now and agrees to pay for them later.

• Additional costs that credit card issuers charge their customers if they don't pay at least the minimum monthly payment amount on their credit card statements.

• A type of loan or line of credit that establishes a credit limit, where funds can be borrowed and paid back over and over.