Quiz – Loans Explained Simply

Question 1 of 6

1. Question

The original amount of money you borrow in a loan is called the:

Principal

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Interest

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Collateral

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Premium

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Question 2 of 6

2. Question

A mortgage is described as a long-term loan that typically spans:

20 to 30 years

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3 to 7 years

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1 to 2 years

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40 to 50 years

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Question 3 of 6

3. Question

Personal loans are described as unsecured, which means:

No collateral backs them, so rates are higher

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They are always interest-free

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A house secures the loan

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They never have to be repaid

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Question 4 of 6

4. Question

Credit cards are given as an example of:

Revolving credit up to a limit

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A secured mortgage

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A one-time car loan

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A government grant

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Question 5 of 6

5. Question

Match each loan type to its feature.

Sort elements

Long-term loan secured by the house
Usually lasts three to seven years
Unsecured, with higher rates
Revolving credit up to a limit

Mortgage

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Car loan

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Personal loan

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Credit card

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Question 6 of 6

6. Question

What single word names the original amount of money you borrow in a loan?

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