Credit and Loans Quiz

What is the term for the ability to borrow money or access goods or services with the understanding that you'll pay later?

• Collateral

• Credit

• Principal

• Cosigner

Who is the person or entity that lends money or extends credit?

• Debtor

• Creditor

• Cosigner

• Principal

What is the term for a person who owes money?

• Creditor

• Debtor

• Cosigner

• Collateral

What type of credit is used by individuals for personal needs?

• Consumer Credit

• Secured Credit

• Unsecured Credit

• Line of Credit

What is a legally binding agreement between two or more parties?

• Credit

• Contract

• Collateral

• Credit Report

What clause allows a lender to demand full repayment if certain conditions are not met?

• Finance Charge

• Acceleration Clause

• Credit Report

• Credit Score

What type of credit is repaid in equal payments over a specified period?

• Open-end Credit

• Installment Loan

• Line of Credit

• Unsecured Credit

What is the initial payment made when something is bought on credit?

• Principal

• Down Payment

• Collateral

• Finance Charge

What is the original sum of money borrowed in a loan?

• Credit

• Principal

• Collateral

• Credit Score

What is an asset pledged by a borrower to secure a loan?

• Credit

• Collateral

• Principal

• Cosigner