Business types of credit

Question 1

2. Card-holder can purchase up to credit limit. E.g. $10,000.

Answer 1

Credit card

Question 2

6. Money borrowed for a period of time for various uses. E.g. $5,000 for 2 years.

Answer 2

Personal loan

Question 3

5. Loan to pay for house purchase. E.g. BNZ home loan.

Answer 3

Mortgage

Question 4

1. Attached to a bank account, allowing the account-holder to spend beyond account balance.

Answer 4

Overdraft

Question 5

1. Borrowing to pay university fees and living costs.

Answer 5

student loan

Question 6

3. Receive goods now but pay later in instalments. E.g. appliances from Farmers.

Answer 6

Hire purchase

Question 7

4. Deposit is paid by the customer and a loan from a finance company pays the car-dealer the rest of the purchase price.

Answer 7

Car Finance