Types of Credit Unit Assessment

Amy and Chuck each buy a house in the same neighborhood for $250,000. Amy's monthly mortgage payment is $400 more per month than Chuck's. Which of the following statements would explain the difference?

• Amy chose a shorter term for her mortgage, so her monthly payments are higher

• Chuck has a lower credit score, so his interest payments are also lower

• Amy made a larger down payment, so her monthly payments are also larger

• Chuck's interest rate is higher, so his monthly payment due is also lower

Tags

CCSS.HSA.CED.A.1

CCSS.HSA.CED.A.2

CCSS.HSA.SSE.A.1

A credit card offer comes in the mail with the bold print "0% A.P.R. for New Accounts."

Which important piece of information should you find before thinking about signing up?

• Can I get two or more cards with this offer?

• Can I pay my credit card bill online?

• What is the A.P.R. after the introductory period?

• What kind of designs can I get on my card?

Tags

CCSS.7.RP.A.3

Choose the option that BEST completes this sentence: Personal loans are called "personal loans" because...

• you apply for them in-person, at your own bank branch or at a competing branch (if they offer better rates).

• you apply for them in-person or online, but whether you are given the loan depends on your personal credit score.

• they are lent based on your personal credit history rather than secured by an asset like a house or car.

• they are given to someone based on their personal familiarity with their banker.

Tags

CCSS.RI.8.2

CCSS.RL.11-12.2

CCSS.RL.7.1

CCSS.RL.8.1

CCSS.RL.9-10.2

Based on the Card Statement above, which of the following statements is TRUE?

• The cardholder is carrying a balance over from the last period.

• The cardholder was charged interest on her balances for the last period because she made her payment on time.

• If the cardholder makes her minimum payment of $35.00 by the due date, she will NOT be charged interest on her balances.

• If the cardholder pays $523.20 by the due date on the bill, she will pay NO interest to the credit card company.

Tags

CCSS.7.NS.A.1D

Based on the Card Statement above, how much credit does this cardholder have available to use?

• $0

• About $500

• About $1600

• $2100

Tags

CCSS.6.NS.C.5

Which of the following statements about Federal student loans is TRUE?

• The Federal government offers numerous loan repayment plans, including standard, income-based, and graduated payments.

• Federal student loans do not begin accumulating interest until after you graduate and are employed at least part time.

• Federal student loans are typically more expensive than private student loans.

• You must take the SAT or ACT to qualify for Federal student loans.

What statement about credit cards is TRUE?

• They can help you establish a credit history

• Since they are tied directly to your checking account, they prevent you from spending money you do not have

• If you need to carry a balance, the interest rates are generally quite low (less than 5%)

• As long as you make the minimum payments it's like getting a short-term interest free loan

You see on a commercial that OrangeCo is offering a credit card with a 5% cashback program for all cardholders. Which question might help you evaluate how good this offer is?

• Does the cashback program apply to all purchases or only specific types of purchases like gas and groceries?

• Can I get a debit card along with a new credit card?

• Who does OrangeCo use as their spokesperson in the commercial?

• Do I still get the cash back even when I return my purchases to the store?

Which of the following statements comparing credit and debit cards is TRUE?

• Far more businesses accept credit cards than debit cards

• Credit cards pull money directly from your bank account, while debit cards get their money from Visa or Mastercard

• Credit card companies provide you with a monthly statement, while debit cards do not

• With debit cards, you're spending your own money at point of sale, while with credit cards, you're promising to pay back the money eventually

If you are having trouble making loan or credit card payments, which recommendation below represents the LEAST useful piece of advice?

• Find an extra source of income by taking a second job, working longer hours, asking for a raise, etc

• Stop making payments on some of your debts so you can focus on getting the most expensive or largest debts under control

• Call your lenders and see if you can negotiate lower monthly payments, lower interest rates, or longer terms

• Reduce spending in some other area of your budget so you can direct more funds toward debt payments