Suppose you would like to buy a new car. If you do not have enough cash to buy the car, you will need to get a loan from the bank. The bank will charge you a fee for borrowing this money. This fee is in the form of interest that you must repay to the bank.
This term represents the fee that the bank charges for borrowing their money (Interest, Cash, Revenue, Loan)
A loan from the bank is often necessary when you want to buy expensive items, such as a car or a house. For smaller items people often use a credit card. Although they can be handy, a credit card can be very costly if not used properly.
Which type of financing gives you the most convenience but at a higher interest rate? (Line of Credit, Bank Loan, Credit Card, Savings)
The interest rate on a loan can be Fixed or Variable. A Fixed rate does not change and you will always make the same payments. If you have a Variable rate, your payments could go up or down, depending on the economy.
Which type of interest rate does not change over the period of the loan? (Fixed, Variable, Standard)
Which type of interest rate may change over the period of the loan? (Fixed, Variable, Credit)
When you take out a loan to buy a car, you pay interest. When you take out a loan to pay for school you pay interest. And a mortgage, a long term loan to but a house, works the same way.
What is the term given to a house loan? (Mortgage, Regular, Indexed, Bond)
What do you call the amount remaining to be paid on a loan? (Leftover, Balance, Sum, Debit)
Before approving a loan, the bank may ask that a second person agree to sign the loan contract.
This person is referred to as a (Friend, Associate, Co-signer, Colleague).
Before loaning you money, the bank will want to know if you are a good credit risk. In other words, will you be able to pay back the loan? Your credit report will help the bank decide.
This report will affect whether or not your loan is approved? (Bank report, Credit report, Financing report)
