Credit Quiz

What is the ability to borrow money with the promise to pay it back later called?

• dividends

• credit

• insurance

• interest

What is a secured loan?

• Student loan

• New car loan

Which is NOT one of the 3 large credit reporting agencies?

• Experian

• Equifax

• Transunion

• Merck

What is a DISADVANTAGE of using debit cards, electronic transfers, and ATM cards?

Interest earned or charged on interest is called...

• simple interest

• compound interest

• interest rate

• inflation rate

The cost to use someone else's money for a period of time is called the.....?

Which loan has fixed payments that are the same each month?

• a closed ended loan

• an open ended loan

The lowest dollar amount that a person is required to pay to the credit card company is the...?

• minimum interest rate

• monthly fee payment

• minimum payment

• principal payment

Which of the following is an example of open-ended or revolving credit?

• A mortgage

• A car loan

• A credit card

• installment loans

What is an example of an unsecured loan?

• A car loan

• A loan taken on a life insurance policy.

• A pawnshop loan

• A student loan