Types of Loans Worksheet
This worksheet covers various types of loans, their characteristics, and common uses, suitable for Grade 9 Social Studies students.
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Types of Loans
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Read each question carefully and answer to the best of your ability. This worksheet will test your knowledge of different types of loans.
1. Which type of loan is typically used to purchase a house?
Personal Loan
Auto Loan
Mortgage
Student Loan
2. A loan that requires an asset as collateral is known as a(n):
Unsecured loan
Secured loan
Payday loan
Revolving loan
3. A(n) loan is a type of installment loan that has a fixed interest rate and a fixed repayment schedule.
4. Credit cards are an example of credit, where you can borrow and repay funds repeatedly up to a certain limit.
5. When you take out a loan, the money you originally borrow is called the .
6. An unsecured loan typically has a lower interest rate than a secured loan because it carries less risk for the lender.
True
False
7. Student loans are typically used to finance the purchase of a vehicle.
True
False
Match each type of loan with its primary purpose.
8. Mortgage
a. Education expenses
9. Auto Loan
b. Home purchase
10. Student Loan
c. Vehicle purchase
11. Explain the difference between a secured loan and an unsecured loan. Provide an example of each.