Final Exam Banking Part A (credit)

What is a way to make sure you pay your bills on time?

• Direct deposit
• Automatic payments
• Checking account
• Savings account

What can cause a high interest rate?

• A high credit score
• A low credit score
• An average credit score
• Paying your bills early

What is the average range of credit scores?

• 100-1,000
• 1-10
• 300-850
• 100-750

Which of the following is something that can hurt or damage your credit score?

• Paying your students loans off one year early
• Paying off your car one year early
• Taking out loans you are unable to pay back on time
• Opening up a credit card at a store you shop at frequently

True or False: Once your credit score goes down, it can never go back up.

• True
• False

More useful when you are short on cash in an emergency.

• Debit card
• Credit card
• Both

Which is the best way to establish a good credit rating?

• pay cash for all expenses

• close all savings accounts

• always pay bills on time

• spend as much as possible

Which item in a person's budget is considered a variable expense?

• entertainment

• insurance premiums

• car payments

• rent

Which one is NOT one of the 3 C's of Credit

• Character

• Caution

• Capacity

• Capital

The cost of credit is the

• Amount of monthly payment

• Cash price

• Interest/Finance charge

• Buy now pay later