Financial Literacy Final (12/22)

Credit is important for accessing loans, but it does not impact anything else

• True

• False

Check all that apply. What are some benefits of having good credit?

• Higher credit card limits

• Pay less on taxes

• Save on interest rates

• Can potentially get paid more at your job

• Better chance of accessing loans

_______ is an easy and accessible way to build your credit score

• Getting a debit card

• Borrowing money as often as possible

• Paying the least amount of money on your loans

• Getting a credit card

Hannah is getting a loan from the bank for $100,000. The bank told her that in order to make sure they get their money back, they are giving her a ________ loan which means she will lose something else that she owns if she does not pay the money back

• Amortizing

• Non-amortizing

• Secured

• Unsecured

Why is insurance considered a risk?

• The protection might not be guaranteed even if you pay for it

• The protection is only guaranteed if you over a certain amount of money per month for it

• You pay a bunch of money for protection on event that you know is going to happen for sure

• You pay a bunch of money for protection on event that may or may not happen

Check all that apply. Which of the following options align with having a credit card?

• You can use as much as you want

• Have to pay interest

• It serves as a loan

• There are no repayments required

• You can earn rewards

Which of the following is a very average credit score?

• 530-550

• 640-680

• 770-790

• 800-850

Most loans are ______ which means the borrower does not have to pledge something as collateral

• Amortizing

• Non-amortizing

• Secured

• Unsecured

What is credit?

• When you exceed the amount of money to live comfortably

• Shows your reliability of making payments on money that you have borrowed

• How trustworthy someone is when it comes to knowledge of financial literacy

• When you have enough money for someone to borrow from you

My monthly payment is $500. This past month, $200 of that $500 went to paying off the loan itself. The remaining $300 of that $500 went to the bank. I spent $200 towards the _______

• Taxes

• Principal

• Interest

• Stock