Credit and Debt Quiz

Michael borrowed some money from Noah to buy a new bike. In this scenario, what is the money that Michael owes to Noah?

• Money received as a gift

• Money owed because of borrowing

• Money saved for future use

• Money earned from investments

Arjun is considering different ways to borrow money. Which of the following is the simplest form of debt he could choose?

• Loan

• Credit card

• Bond

• Mortgage

Michael is planning to get a new credit card. He is considering the four main credit card brands. Can you help Aria and Anika identify these brands for him?

• Visa, MasterCard, Capital One, Chase

• Visa, MasterCard, American Express, Discover

• Visa, American Express, Discover, Capital One

• American Express, Discover, Capital One, Chase

Michael, Zoe, and Abigail are discussing about different sources of credit. Michael mentioned Credit unions, Zoe mentioned Stock markets, Abigail mentioned Retail stores and they all agreed on Commercial banks. According to their discussion, which one is NOT a source of credit?

• Credit unions

• Stock markets

• Retail stores

• Commercial banks

Maya is considering taking out a credit card and Benjamin mentioned something about an annual percentage rate (APR). What does APR associated with credit mean?

• The time period Maya has for repaying the credit card debt

• The total cost of the credit card for Maya

• The amount of money Maya borrowed on her credit card

• The cost of credit for Maya's credit card expressed as a yearly interest rate

Liam is considering taking on some debt. Which of the following options would be considered good debt?

• A mortgage for a new house

• A credit card for general expenses

• A school loan for Maya's college education

• A retail store credit card for Michael's new clothes

Oliver, Nora, and Daniel are planning to manage their credit and debt. What should be their first step?

• Make wise purchases

• Pay down high-interest debt

• Understand their debt-to-income ratio

• Set goals and create a budget

Scarlett received a gift card as a reward for applying for a credit card. Michael thinks it's a good reason to apply for one too. Is he correct?

• No, credit cards should not be used for rewards

• Yes, it is a good incentive to apply for a credit card

• No, there are better reasons to apply for a credit card, like Charlotte did for building her credit history

• Yes, it is a good way to build credit

Sophia, Isla, and Grace are considering getting their first credit cards. They are discussing the potential costs associated with credit cards. What are some costs they might discuss?

• Over-limit fees, annual fees, post-introductory interest rate

• Monthly compound interest, late fees, annual fees

• Annual fees, interest rates, origination fees

• Introductory interest rate, late fees, origination fees

Hannah, Lily, and Abigail are applying for a job. Why would Hannah's bad credit affect her application?

• Bad credit affects Hannah's job performance

• The employer prefers candidates like Lily and Abigail with good credit

• The employer views Hannah's bad credit as a sign of financial irresponsibility

• Bad credit indicates Hannah's lack of trustworthiness