What Is Financing? - Definition & Types

Instructions:

Choose an answer and hit 'next'. You will receive your score and answers at the end.

question 1 of 3

When taking out a loan, you are required to sign a legal document promising to repay it. What is this document called?

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1. Neris takes out a loan for $100,000 to buy a house. She makes 25 payments of $4,000 and asks for the title (ownership papers) to be placed into her name. Will Neris receive the title and why?

2. What type of loan is made to a borrower to purchase a house?

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About This Quiz & Worksheet

Use this quiz/worksheet combo to see what you know about financing methods typically available to consumers. Some of the information you'll be assessed on includes a definition of financing as well as types of loans.

Quiz & Worksheet Goals

In these assessments you'll be tested on:

  • What financing means
  • Fees charged to customers who borrow money
  • Loans to buy a house
  • Secured loans
  • Unsecured 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 financing types
  • Interpreting information - verify that you can read information regarding how to qualify for an unsecured loan and interpret it correctly
  • Defining key terms - ensure that you can accurately define main terms, such as financing and secured loan
  • Knowledge application - use your knowledge to answer questions about financing types and elements of the financing processes

Additional Learning

To learn more about borrowing money, review the accompanying lesson called What is Financing?: - Definition & Types. This lesson covers the following objectives:

  • Define financing and identify an example of financing from the lesson
  • Relate three types of financing
  • Tell the purpose of a promissory note
  • Explain how the information in your credit report is used when applying for financing
  • Differentiate between secured loans and unsecured loans
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