Which term refers to money borrowed from a lender that is to be paid back over time, usually with interest?

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Multiple Choice

Which term refers to money borrowed from a lender that is to be paid back over time, usually with interest?

Explanation:
Money borrowed from a lender that you repay over time with interest is called a loan. A loan is the amount you borrow, known as the principal, and you repay it according to an agreed schedule, with interest representing the cost of borrowing. Related terms: collateral is an asset pledged to secure a loan (not all loans require it), the principal balance is how much you still owe on the loan after payments, and a co-signer is someone who agrees to repay if the borrower can’t—this describes a person, not the borrowing itself. So the term that fits the description is loan.

Money borrowed from a lender that you repay over time with interest is called a loan. A loan is the amount you borrow, known as the principal, and you repay it according to an agreed schedule, with interest representing the cost of borrowing. Related terms: collateral is an asset pledged to secure a loan (not all loans require it), the principal balance is how much you still owe on the loan after payments, and a co-signer is someone who agrees to repay if the borrower can’t—this describes a person, not the borrowing itself. So the term that fits the description is loan.

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