Name Date
Lesson 9—Assessment 2
Quiz
Directions: Match the following terms to the correct definition:
Write a short response to the following question:
10. What is the difference between an auto title loan and a payday loan?
1. ____ Finance charge A. Unpaid balance on a loan
2. ____ Revolving credit B. The percentage charged for a loan
3. ____ Peer-to-peer lending C. Borrowing of funds with a fixed payment and schedule for a specified time
4. ____ Principal D. Lending money though online services by matching borrowers with investors
5. ____ Installment credit E. A fee charged for the use of credit
6. ____ Interest rate
F. Access to a capped limit of funds that may be used repeatedly after partial or
total repayments have been made
Select the correct answer below.
7. Increase/ Decrease
8. Increase/
Decrease
9. Increase/ Decrease
What happens to the total finance charge as a loan term lengthens?
What happens to the monthly payment as a loan term lengthens?
What is the e
ect of a higher APR on a monthly payment?
DEBT
