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Types of Credit

Types of Credit

Assessment

Flashcard

Life Skills

9th - 12th Grade

Practice Problem

Medium

Created by

Amy Wolford

Used 3+ times

FREE Resource

Student preview

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25 questions

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1.

FLASHCARD QUESTION

Front

Where do banks get the money to lend out to consumers?

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Back

From their clients' savings accounts

2.

FLASHCARD QUESTION

Front

How does a bank make money off of the credit they issue for a car loan?

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Back

They charge a high interest rate on the loan.

3.

FLASHCARD QUESTION

Front

Evelyn wants to apply for a financial product that is NOT a typical type of credit. Options: Mortgage, Overdraft, Credit Card, Pre-Paid Debit Card

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Back

Pre-Paid Debit Card

4.

FLASHCARD QUESTION

Front

Maya wants to purchase a car and is considering taking a loan. Which of the following loan types is typically a SECURED loan that she can consider? Options: Auto Loan, Student loan, Credit Card Balance, Overdraft

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Back

Auto Loan

5.

FLASHCARD QUESTION

Front

Why should Lily opt for a secured loan for her new car if the car can be taken away as collateral?

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Back

Because they usually have a lower interest rate

6.

FLASHCARD QUESTION

Front

Which factor may NOT impact the interest rate on a loan? Options: Her relationship with the financial institution, Her credit score, The loan amount, Her level of education.

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Back

Her level of education

7.

FLASHCARD QUESTION

Front

True or False: A cosigner's credit history can be affected by the loan they are cosigned on.

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Back

True

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