Personal Finance Literacy

Consumer credit can help a lender determine how much a borrower is charged to borrow money.

• True

• False

A secured loan is backed by __________________.

• money from the financial institution

• money from the government

• a promise to repay the loan.

• collateral or something of value, posted by the borrower.”

The top salary you can make.

• earning potential

• career

• productivity

• human capital

Is debt-to-income a factor when a lender is assessing whether to loan a borrower money?

• No

• Yes

If a consumer DOES NOT have any collection accounts, does that have a negative impact on their score?

• Yes

• No

The quality, state, or fact of being able to generate, create, enhance, or bring forth goods and services.

• Productivity

• Earning Potential

• Opportunity Cost

• Human Capital

What is a credit score?

• An average of all of a borrower's credit accounts

• A score from a test given to borrowers by lenders

• A number that represents how much money a borrower owes

• A number that represents the risk a lender takes on a borrower

An account that allows you to save money, as well as make deposits and withdrawals.

• Savings

• Certificate of Deposit

• Money Market

• Checking

What is a credit card?

• The paying off of a debt with a fixed repayment schedule in regular installments over a period of time.

• A card issued by a bank or business, allowing borrowers to purchase goods and services on credit

• The non-interest portion of a loan

• The fee that is paid to borrow money

What is principal?

• The rate lenders charge borrowers for money

• The paying off of a debt with a fixed repayment schedule in regular installments over a period of time

• The non-interest portion of a loan

• The fee that is paid to borrow money.