Question

column a

1. cosigner
2. credit
3. fixed rate interest
4. installment loan
5. interest
6. mortgage
7. principal
8. revolving credit
9. secure loan
10. term
11. unsecured loan
12. variable rate interest

column b
a. buy now, pay later
b. the original amount lent to a borrower
c. a loan or line of credit that is not backed by any collateral
d. an individual willing to put their name down to vouch for you paying back a loan. this often happens with individuals who do not have an established credit history or dont have a high enough income.
e. depending on the economy, an institution may exercise the right to rise or lower the interest rate on your loan. this type of loan is agreed upon by both parties before taking place.
f. the length of the loan (in time)
g. the interest associated with paying back the loan will not change no matter what happens with the economy. individuals selecting a loan with this option may pay a higher interest rate than others to begin with, but with the knowledge that it will not ever go up.
h. also known as a line of credit. the lender will allow you to take as little or as much as you need at one time (up to a certain limit). you can take out more before you pay back what is borrowed, as long as you dont borrow over your limit and pay back what you did borrow. the interest for this type of loan is often higher than others.
i. this is a loan that is backed by collateral or an object of value in case you default on your loan.
j. the price associated with taking out a loan or using another institutions money
k. this is a one - time loan for something. once the loan is established, the borrower and the loaner agree on the length of time the borrower has to pay the loan back and how much they will pay each month until it is paid off.
l. a home loan

Explanation:

Match each financial - term in Column A with its correct definition in Column B based on common financial knowledge.

Answer:

1. d. An individual willing to put their name down to vouch for you paying back a loan. This often happens with individuals who do not have an established credit history or don't have a high enough income.
2. a. Buy now, pay later.
3. g. The interest associated with paying back the loan will not change no matter what happens with the economy. Individuals selecting a loan with this option may pay a higher interest rate than others to begin with, but with the knowledge that it will not ever go up.
4. k. This is a one - time loan for something. Once the loan is established, the borrower and the loaner agree on the length of time the borrower has to pay the loan back and how much they will pay each month until it is paid off.
5. j. The price associated with taking out a loan or using another institution's money.
6. l. A home loan.
7. b. The original amount lent to a borrower.
8. h. Also known as a line of credit. The lender will allow you to take as little or as much as you need at one time (up to a certain limit). You can take out more before you pay back what is borrowed, as long as you don't borrow over your limit and pay back what you did borrow. The interest for this type of loan is often higher than others.
9. i. This is a loan that is backed by collateral or an object of value in case you default on your loan.
10. f. The length of the loan (in time).
11. c. A loan or line of credit that is not backed by any collateral.
12. e. Depending on the economy, an institution may exercise the right to rise or lower the interest rate on your loan. This type of loan is agreed upon by both parties before taking place.