SSEPF4

Your credit worthiness is determined LEAST by which of the following

• Credit Score
• Collateral
• Amount of debt
• tax rate

Which of the following MOST ACCURATELY defines the term interest rate? 

• The level of attention that economists pay to economic activity at any one time
• Money paid by the banks financial institutions to the US government
• Money paid by a borrower to a lender in exchange for use of money
• Discounts on purchases made with a credit card

John borrows $100 dollars from Ed. They agree that John will pay back the loan in two months at a rate of 10% monthly. If John pays back exactly $120, the the interest was

• Compounded

• Simple

The part of a loan that consists of the original amount of money borrowed

• Principal

• Credit History

• Annual Percentage Rate (APR)

• Interest

A number based on information in a consumer’s credit report that measures an individual's credit worthiness.

• credit score
• credit card
• financial report

One of the 3 C's of credit that refers to property that secures the loan is

• capital

• collateral

• character

• capacity

Which of the following have an impact on your credit score?

• How much current outstanding debt you have (amount owed)

• Length of credit history (how long you've used credit)

• Payment history

• All of the above

Compare 2 loans that Mr. C has. One has a fixed interest rate of 3%, and one has an APR of 18%. Which of the following is probably true?

• The 18% APR t is most likely a credit card, while the fixed rate loan is probably a car loan or mortgage.

• He has too much debt

• The 3% interest rate debt is most likely a credit card from Macy's

• The 18% interest rate debt is probably a car loan, while the fixed rate loan is most likely a credit card.

In which situation does compound interest best benefit you?

• On credit cards

• On car loans

• In a savings account or investment account

• Never

What is another way to describe CAPACITY with respect to credit worthiness?

• Debt to income ratio

• Number of years of credit history

• Number of family members

• How old someone is