Financial Literacy MC

What is credit?

• The ability of a customer to obtain goods or services AFTER payment, based on the fact that payment has been made.

• The ability of a customer to obtain goods or services BEFORE payment, based on the trust that payment will be made in the future.

• The ability of a customer to obtain goods or services BEFORE payment, based on the understanding that payment will never need to be made.

Which of these factors determine your credit score?

• Payment History

• Savings Account Balance

• Credit to Debt Ratio

• Credit History Length

Which of these factors determine your credit score?

• Credit Diversity

• New Lines of Credits or Credit Pulls

• Income

• Employer

Which of the following are reasons that it is important to maintain a high credit score?

• Because your credit score can affect your ability to get a loan, rent an apartment, or even qualify for a job.

• Because your credit score can impact your grades in school.

• Because your credit score will impact your interest rates on future loans or credit cards.

The source of a credit cards balance is?

• Your bank account.

• A short term loan.

The source of a debit cards balance is?

• A short term loan.

• Your bank account.

Select all of the benefits of credit cards.

• Penalties

• Convenience

• Free Money

• Builds Credit

Select all of the benefits of credit cards.

• Security

• Interest

• Rewards

You should use life insurance when?

• You go to the doctor.

• A family member passes away.

• A hail storm damages your car.

• A small fire destroys your kitchen.

You should use health insurance when?

• You go to the doctor.

• A family member passes away.

• A hail storm damages your car.

• A small fire destroys your kitchen.