Loan terminology quiz

You can do this quiz online or print it on paper. It tests some of the terms covered in the glossary of Loan Terminology in our Vocabulary section.

1. If you're applying for a bank loan, you're trying to

lend money to the bank
save money in the bank
borrow money from the bank
a) lend money to the bank b) save money in the bank c) borrow money from the bank

2. What do we call something of value, such as a house, that we can use to pay off debts?

an asset
a liability
a credit
a) an asset b) a liability c) a credit

3. The extra money that you pay back when you take out a loan is called

a late fee
interest
a down payment
a) a late fee b) interest c) a down payment

4. Borrowers often use their assets as _______ to get a loan.

refinancing
leverage
collateral
a) refinancing b) leverage c) collateral

5. An interest rate that can't be changed during the lifetime of a loan is

a fixed rate
a variable rate
an adjustable rate
a) a fixed rate b) a variable rate c) an adjustable rate

6. Your debts are all the sums of money that

others owe you
you owe others
you lent others
a) others owe you b) you owe others c) you lent others

7. If you have a record of not paying back loans on time, your credit score will probably be

very low
average
very high
a) very low b) average c) very high

8. A loan given on the basis of the borrower's creditworthiness instead of collateral is known as

a title loan
a subprime loan
an unsecured loan
a) a title loan b) a subprime loan c) an unsecured loan

9. A loan to buy a property such as a house, in which the property being bought is used as collateral, is called

an annuity
a mortgage
a portfolio
a) an annuity b) a mortgage c) a portfolio

10. In a company's balance sheet, all debts and other financial obligations the company owes are listed as

loan defaults
liabilities
bad debts
a) loan defaults b) liabilities c) bad debts

Your score is:

Correct answers:

Contributor: Matt Errey. Matt is the author of several books including 1000 Phrasal Verbs in Context and Common English Idioms for learners, and Matt's ESL Games and Quizzes for teachers.