Borrowing Basics Unit Test Review

Which of these is a for-profit financial institution licensed to receive deposits and make loans?

• Bank

• Credit Union

• Business Lender

• Credit Card Issuer

Which of these is a member-owned nonprofit cooperative financial institution?

• Bank

• Credit Union

• Business Lender

• Credit Card Issuer

Which of these is a short-term, high cost loans due on the next payday?

• Promissory Note

• Payday Loan

• Unsecured Loan

• Title Loan

Which of these require the borrower to offer collateral as securement provided to the lender?

• Promissory Note

• Bank

• Unsecured Loan

• Title Loan

Which of these contain written promise of, and plans for, repayment?

• Promissory Note

• Title Loan

• Unsecured Loan

• IOU

What term refers to when goods, services or money is received in exchange for a promise to pay a definite sum of money at a future time?

• Credit

• Interest

• Principle

• Collateral

What term refers to the process of borrowing money from an individual or investor without a bank’s consent?

• Peer-to-peer Lending

• Hacking

• Micro lending

• Collateral Lending

What term refers to a valuable possession the borrower offers to lender for securement of the loan provided?

• Title Loan

• Asset

• Liability

• Collateral

What term refers to anything an individual owns which has monetary value?

• Title Loan

• Assets

• Liability

• Collateral

What term refers to the obligations an individual has to pay?

• Title Loan

• Assets

• Liability

• Collateral