What term means money that is borrowed and must be paid back?

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Study for the GMAS 8th Grade Social Studies Test with focused flashcards and multiple choice questions complete with hints and explanations. Get ready to excel!

Multiple Choice

What term means money that is borrowed and must be paid back?

Explanation:
The concept here is money owed because you borrowed it. That obligation is called debt — it’s an amount you owe to someone else and must pay back, usually with interest. Savings is money you set aside for future use, not something you owe. Interest is the extra cost (or return) tied to borrowing or lending money, not the borrowed amount itself. Revenue is income a business earns from its activities. So the term that fits “money that is borrowed and must be paid back” is debt.

The concept here is money owed because you borrowed it. That obligation is called debt — it’s an amount you owe to someone else and must pay back, usually with interest.

Savings is money you set aside for future use, not something you owe. Interest is the extra cost (or return) tied to borrowing or lending money, not the borrowed amount itself. Revenue is income a business earns from its activities. So the term that fits “money that is borrowed and must be paid back” is debt.

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