Financial Literacy Quiz

John is applying for a mortgage to buy his first home. The bank wants to assess his creditworthiness before approving the loan. What will the bank request to get a detailed report of John's credit history?

• Credit score

• Credit report

• Debt consolidation

• Annual percentage rate (APR)

John wants to buy a car and is considering a type of loan where he would repay the borrowed amount and interest with a set number of equal payments over a specific period of time. What is this type of loan called?

• Revolving credit

• Installment loan

• Open-ended credit

• Deferred interest financing

John is applying for a mortgage and the bank evaluates a statistical number that represents his creditworthiness based on his credit history. What is this number called?

• Debt-to-Income Ratio

• Credit Utilization Rate

• Credit Score

• Annual Fee

Imagine you're taking out a loan to buy a car. What term describes the cost per year of borrowing money for this car, including interest, fees, and charges?

• Annual fee

• APR

• Transaction fee

• Balance transfer fee

John received a notification that he has been charged a fee for exceeding the credit limit on his credit card. What is this fee called?

• Annual fee

• Over-the-credit-limit fee

• Balance transfer fee

• Cash advance fee

John missed several payments on his car loan. What term describes his situation?

• Pre-approved

• Authorized user

• Co-signer

• Default

Imagine you've been using your credit card for all your monthly expenses, including groceries, gas, and online subscriptions. At the end of the month, you pay off the balance in full. Despite this, you notice a fee on your statement. What is this fee called?

• Monthly periodic rate

• Cash-advance fee

• Indexed rate

• Minimum finance charge

Imagine you have a credit card with a high interest rate. You've received an offer from another credit card company with a lower interest rate. What is this process of moving your existing balance to the new card called?

• Annual Fee

• Credit Limit

• Balance Transfer

• Interest Rate Reduction

John is applying for a mortgage and the bank requests a document that outlines his financial history, including his track record with previous loans, credit card payments, and utility bills.

• Credit report

• Credit bureau

• Card holder agreement

• Credit limit

Imagine you've been approved for a new credit card. What is the maximum amount you're allowed to spend on this account?

• Minimum finance charge

• Balance-transfer fee

• Credit limit

• Average daily balance