Credit Unit Test Review

Your credit score may be based on which of the following:

• Whether or not you pay your bills on time.

• Number of credit cards held and their balances.

• The number of years one has had credit.

• All of the above.

If you have a low credit score, you may face which of the following:

• May be turned down for a loan

• You could have difficulty renting an apartment.

• You might not be hired for a job.

• None of the above

• All of the above

When choosing a credit card, be sure to look for:

• High APR

• No Annual Fee

• A short grace period

• All of the above

When used and managed properly, credit cards offer us:

• The ability to build a credit history

• High finance charges and fees

• Excessive debt

• Financial liability

Jane borrows $5000 at a 5% add-on rate for one year. What is the finance charge?

• $200

• $250

• $2500

• $3500

Sandy borrows $8000 at an 8% add-on rate for four years. What is the finance charge?

• $2560

• $2650

• $2500

• $25600

If you want to lower the finance charge, should you shop for:

• A card with rewards

• A card with a higher interest rate

• A card with a high APR

• A card with a lower interest rate

The word “capacity” refers to the following:

• How reliable is your income?

• Do you pay child support?

• Do you have other sources of income?

• None of the above

• All of the above.

A common advantage of using credit is:

• lower chance of overspending

• less impulse buying

• acquire something needed now

• lower cost for items purchased

Utility companies and medical service organizations commonly offer ______ Credit.

• revolving

• single-payment

• installment

• medical bills