Loans, cars, housing (true or false) test

A gradual decrease in the value of an asset is called depreciation

• True

• False

Type of debt backed by something of value is called unsecured debt

• True

• False/Secured debt

Car loan is an example of installment loan

• True

• False

You are the lesser when you lease a car

• True

• False/Lessee

Owing more on an asset than it is worth is called being underwater on the loan

• True

• False

Loan obtained when you purchase a home and use the home as collateral is a mortgage

• True

• False

Difference between what you owe on your home and the balance of the mortgage on the home is called foreclosure

• True

• False/assessment

When a bank takes possession of your home is called foreclosure

• True

• False

Mortgage is an account for holding money in a trust for others

• True

• False/ escrow

Adjustable rate mortgage allows the interest rate to change

• True

• False