Understanding Financing — Quiz

Question 10 • Financial Algebra/Mathematics

What is an asset?

Answer

a fee that protects the lender if a borrower cannot repay a loan

a penalty charged to borrowers if they pay off a loan early

an item owned by a person that is worth money or has value

an arrangement in which a person buys something by paying a little bit of the total cost over time

Explanation

An asset is something a person owns that has monetary or other value. For example, a car, savings, or a home can be an asset. Choice C gives this definition; the other choices describe loan fees or a payment arrangement.

AI-written and checked against the verified answer.

Back to All Questions

More from this Course

Quiz

Quiz

Quiz