Credit and Loans Quiz

What is a credit report?

• A measure of a person's ability to make credit payments on time.

• A report showing all of the history of borrowing and paying back money.

• A consumer reporting agency that collects and reports information.

• An automatic deposit of net pay from paycheck to an employee's bank account.

What does a credit score indicate?

• The smallest amount you can pay to remain a borrower in good standing

• A one-time loan that will be paid back over a specified period

• A measure of a person's ability and willingness to make credit payments on time

• The total dollar amount you pay to use credit

What is closed-end credit?

• A credit card loan with repeated withdrawals and repayments

• A one-time loan that you will pay back over a specified period of time in payments of equal amounts

• An arrangement to receive cash, goods, or services now and pay for them later

• A secured loan such as a car or house

What is open-end (revolving) credit?

• A one-time loan that you will pay back over a specified period of time in payments of equal amounts

• A credit card loan where you can make repeated withdrawals and repayments

• A secured loan such as a car or house

• An arrangement to receive cash, goods, or services now and pay for them later

Which agencies are considered the three major credit bureaus?

• TransUnion, Equifax, and Experian

• Visa, MasterCard, and American Express

• PayPal, Stripe, and Square

• Bank of America, Citibank, and Wells Fargo

What is a grace period in the context of credit cards?

• A time period during which no finance charges will be added to your account

• The smallest amount you can pay to remain a borrower in good standing

• The total dollar amount you pay to use credit

• A time period during which you must pay the minimum monthly payment

What is collateral?

• A credit card loan with repeated withdrawals and repayments

• A measure of a person's ability to make credit payments on time

• A secured loan such as a car or house

• An automatic deposit of net pay from paycheck to an employee's bank account

What is the minimum monthly payment?

• The total dollar amount you pay to use credit

• The smallest amount you can pay and remain a borrower in good standing

• A one-time loan that you will pay back over a specified period of time in payments of equal amounts

• A measure of a person's ability to make credit payments on time

What does cosigning a loan imply?

• That you agree to be responsible for the loan payments if the other person fails to make them

• A credit card loan where you can make repeated withdrawals and repayments

• An arrangement to receive cash, goods, or services now and pay for them later

• A secured loan such as a car or house

What is credit?

• A report showing all the history of borrowing and paying back money

• A measure of a person's ability to make credit payments on time

• An arrangement to receive cash, goods, or services now and pay for them in the future

• A secured loan such as a car or house