Quiz

Quiz On Loan

  1. What is the purpose of a loan?
  2. To invest in stocks
    To save money
    To borrow money
  3. What is collateral?
  4. The property or asset used to secure a loan
    The interest rate on a loan
    The length of time to repay a loan
  5. Which type of loan typically has the lowest interest rate?
  6. Auto loan
    Personal loan
    Mortgage loan
  7. What is the term for the interest rate that remains the same throughout the loan term?
  8. Variable rate
    Fixed rate
    Annual percentage rate
  9. Which of the following is not a factor that lenders consider when approving a loan?
  10. Favorite color
    Employment history
    Income level
  11. What does APR stand for?
  12. Adjustable Payment Ratio
    Annual Percentage Rate
    Average Personal Risk
  13. What is the term for a loan that requires no collateral?
  14. Subprime loan
    Secured loan
    Unsecured loan
  15. What is a grace period in relation to a loan?
  16. The period during which no interest is charged on a loan
    The length of time to repay a loan
    The time it takes to get approved for a loan
  17. Which type of loan is specifically designed for students to pay for education expenses?
  18. Personal loan
    Student loan
    Auto loan
  19. What is the term for a loan that combines multiple debts into a single payment?
  20. Refinance loan
    Payday loan
    Consolidation loan
  21. What is the down payment in relation to a loan?
  22. The initial payment made towards the purchase price
    The fee charged by the lender
    The amount of money borrowed
  23. Which type of loan is typically used to purchase a home?
  24. Mortgage loan
    Personal loan
    Auto loan
  25. What is the term for a loan with a higher interest rate due to the borrower's poor credit history?
  26. Adjustable-rate loan
    Subprime loan
    Prime loan
  27. What is the term for the total amount of money borrowed in a loan?
  28. Collateral
    Principal
    Interest
  29. Which of the following is a type of business loan that provides funds for purchasing inventory?
  30. Working capital loan
    Commercial mortgage loan
    Equipment loan