Semester 2 Review

What is the definition of 'Debt' as per the learning material?

• The interest rate for a whole year, rather than just a monthly fee/rate.

• Something one party owes another, typically money.

• A type of debt that is not protected by a guarantor or collateral.

• The original sum of money you borrowed from the bank, mortgage lender, or other lenders.

What does 'Credit Report' refer to in the context of loans and borrowing?

• When a lender or company requests to review your credit report as part of the loan application process, and it usually impacts your credit score.

• An inquiry into your credit report, initiated either by you or a company, primarily uses to screen for pre-approval or background checks.

• The action or process of gradually writing off the initial cost of an asset.

• Record of the borrower's credit history from a number of sources.

Which definition corresponds to 'Amortization'?

• A loan that is repaid over time with a set number of scheduled payments.

• The action or process of gradually writing off the initial cost of an asset.

• A secured loan that is secured by a pledge of collateral, typically real property, but for which the borrower is not personally liable.

• The interest rate for a whole year, rather than just a monthly fee/rate.

What is a 'Mortgage'?

• A legal agreement by which a bank or other creditor lends money at interest in exchange for taking title of the debtors property.

• A type of debt that is not protected by a guarantor or collateral.

• Something one party owes another, typically money.

• A loan in which the borrower pledges some asset as collateral for the loan.

Define 'Loan' as used in the document.

• A type of debt that is not protected by a guarantor or collateral.

• A legal agreement by which a bank or other creditor lends money at interest in exchange for taking title of the debtor's property.

• The original sum of money you borrowed from the bank, mortgage lender, or other lenders.

• A thing that is borrowed, especially a sum of money, that is expected to be paid back with interest.

What does 'Annual Percentage Rate (APR)' mean?

• The action or process of gradually writing off the initial cost of an asset.

• The interest rate for a whole year, rather than just a monthly fee/rate.

• A loan that is repaid over time with a set number of scheduled payments.

• Record of the borrower's credit history from a number of sources.

What is 'Collateral' in the context of borrowing?

• A loan in which the borrower pledges some asset as collateral for the loan.

• Something one party owes another, typically money.

• A legal agreement by which a bank or other creditor lends money at interest in exchange for taking title of the debtor's property.

• Something pledged as security for repayment of a loan, to be forfeited in the event of a default.

What is the purpose of a 'Hard Credit Check'?

• When a lender or company requests to review your credit report as part of the loan application process, and it usually impacts your credit score.

• An inquiry into your credit report, initiated either by you or a company, primarily uses to screen for pre-approval or background checks.

• Record of the borrower's credit history from a number of sources.

• The action or process of gradually writing off the initial cost of an asset.

What is a 'Soft Credit Check'?

• A loan in which the borrower pledges some asset as collateral for the loan.

• An inquiry into your credit report, initiated either by you or a company, primarily uses to screen for pre-approval or background checks.

• Something one party owes another, typically money.

• The original sum of money you borrowed from the bank, mortgage lender, or other lenders.

Define 'Installment Loan'.

• A loan that is repaid over time with a set number of scheduled payments.

• The action or process of gradually writing off the initial cost of an asset.

• A secured loan that is secured by a pledge of collateral, typically real property, but for which the borrower is not personally liable.

• The interest rate for a whole year, rather than just a monthly fee/rate.