Credit Quiz

What is credit?

• The amount of money borrowed

• The interest charged on the amount owed

• Paying off credit and other bills

• Borrowing money to purchase something

What is the principal in credit?

• The amount of money borrowed

• The interest paid on the original amount borrowed

• The interest charges on the amount owed

• The interest charged over time for using credit

Tags

CCSS.5.NBT.A.2

What is compound interest?

• Interest calculated on the original principal plus all interest accrued

• Interest charged on interest

• Interest paid on the original amount borrowed

• Interest charged over time for using credit

Tags

CCSS.7.RP.A.3

What is a credit score?

• The interest charged over time for using credit

• The amount of money borrowed

• The interest charged on the amount owed

• How well you pay off your credit and other bills

What is the advantage of having a good credit score?

• More credit and lower interest rates

• Limits amount of credit and gets higher interest rates

• Paying off credit and other bills

• No credit history

What are the extra costs associated with credit cards?

• Grace period, over limit fee, cash advance fee, annual fees

• Late payment, cash advance fee, grace period, over limit fee

• Over limit fee, cash advance fee, annual fees, late payment

• Annual fees, grace period, over limit fee, cash advance fee

What is the disadvantage of only paying the minimum on a credit card?

• You can't buy what you may really need

• You will have bad credit

• You could be paying for something you bought years ago

• You will have no credit

What is an installment loan?

• A loan where the money is borrowed all at once

• A loan made solely on the person's promise to repay

• A loan with security or collateral used to guarantee the loan

• A loan for purchasing a car

What is the difference between a loan and a lease for purchasing a car?

• With a loan, you make payments for the right to use the car, while with a lease, you own the car at the end

• With a loan, you own the car at the end, while with a lease, you make payments for the right to use the car

• With a loan, you own the car at the end, while with a lease, the bank takes the car

• With a loan, you make payments for the right to use the car, while with a lease, the bank takes the car

What is the advantage of a 15-year mortgage compared to a 30-year mortgage?

• Overall interest is less

• Build equity much faster

• Tend to have higher interest rates

• Lower monthly payments