What is a Loan? - Definition, Types, Advantages & Disadvantages


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Loans often require the repayment of

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1. Which of these are common types of loans?

2. What is a mortgage?

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About This Quiz & Worksheet

Use this quiz/worksheet combo to help you test your understanding of the pros and cons of different types of loans. Some of the topics you'll be quizzed on, in addition to the advantages and disadvantages of taking out a loan, are a definition of the term 'mortgage' as well as several common types of loans.

Quiz & Worksheet Goals

In these assessments, you'll be tested on:

  • Paying interest and principal
  • Common types of loans
  • Defining a mortgage
  • Advantages and disadvantages of loans

Skills Practiced

This quiz and worksheet allow students to test the following skills:

  • Reading comprehension - ensure that you draw the most important information from the related lesson on the pros and cons of various loans
  • Interpreting information - verify that you can read information about common types of loans and interpret it correctly
  • Information recall - access the knowledge you've gained regarding the definition of a mortgage
  • Knowledge application - use your knowledge to answer questions about something that loans require the repayment of

Additional Learning

To learn more about loans, review the accompanying lesson on the Pros & Cons of Types of Loans. This lesson covers the following objectives:

  • Define the following terms: loan, principal, and interest
  • Differentiate between secured and unsecured loans
  • Know what it means to 'default' on a loan
  • List several other types of loans mentioned in the lesson