What does the principal of a loan refer to?

The high interest rate charged for a loan.

What is the rate or interest rate in the context of borrowing money?

The percentage that a financial institution charges for borrowing money.

The line of credit that can be used for any purchases.

The asset that can be used as collateral.

What is revolving credit?

An open line of credit that can be used as long as you're under the credit limit.

A loan with a fixed interest rate.

What is secured debt?

Debt that is tied to a specific asset that can be used as collateral.

A loan that must be paid by the next paycheck.

What does "Unsecured Debt" refer to?

Debt not tied to a specific asset; no collateral can be repossessed if the borrower defaults

Debt secured by a specific asset that can be repossessed

Debt that is tied to a variable interest rate

Debt that has a fixed repayment period

What does "Variable Rate" mean in the context of a loan?

Interest rates can change during the duration of the loan based on the prime rate or an index rate

The interest rate is fixed for the duration of the loan

The interest rate does not change and is based on the borrower's credit score

The interest rate changes based on the amount of the loan

What is an annual fee in the context of credit cards?

A yearly fee that may be charged for having a credit card

A monthly fee for credit card usage

A one-time payment for opening a credit card account

A fee charged for each credit card transaction

Who is an authorized user on a credit card?

A person who has permission to use and/or carry another person's credit card

A person who is legally responsible for paying the credit card bill

A person who owns the credit card

A person who is responsible for paying the annual fee

What is a balance transfer?

The act of transferring debt from one credit card account to another

The act of depositing money into a credit card account

The act of paying off the full credit card balance at once

The act of checking your credit card balance online

What does cash back refer to in the context of credit cards?

A credit card benefit that pays the cardholder a small percentage of their net expenditures

A fee charged for withdrawing cash from an ATM

A loan provided by the credit card company

The act of transferring a credit card balance to a bank account

Someone who legally agrees to take responsibility for a person's debt if they cannot repay it

Someone who uses the credit card regularly

Someone who owns the credit card company

Someone who is authorized to use the credit card without owning it

What is a credit card?

A plastic card that allows you to make purchases with borrowed money

A loyalty card that offers discounts at specific stores

A prepaid card that you can load with money for future use

A card that automatically pays your bills from your bank account

What is a Credit Card Agreement?

A contract that outlines the terms and conditions for using your credit card.

The smallest amount of a credit card bill that a credit card holder must pay during a billing cycle.

A higher interest rate triggered by being late with or missing a credit card payment.

A fee charged if your payment is received after the due date.

What does the Credit Limit refer to?

The maximum amount that may be borrowed on a credit card.

The number of days between a borrower's statement date and when payment is due.

The amount of available credit you’re currently using.

The typically low rate charged during the introductory period of a credit card.

What is Credit Utilization?

The amount of available credit you’re currently using, which makes up 30 percent of your credit score.

The interest rate applied after the introductory period of a credit card.

The fee charged for late payment of a credit card bill.

The summary of how you've used your credit card for a billing period.

What is the purpose of a Grace Period in credit card terms?

To allow a borrower a certain number of days to pay the credit card bill without accruing interest or penalties.

To provide a low interest rate during the introductory period of a credit card.

To define the maximum amount that can be borrowed on a credit card.

To outline the terms and conditions for using a credit card.

What is an Introductory APR?

The typically low interest rate charged during the initial period after a credit account is opened.

The fee charged if a credit card payment is late.

The smallest amount that must be paid during a billing cycle.

A higher interest rate for late or missed payments.

What is a Late Payment Fee?

A fee charged if your payment is received after the due date.

The interest rate applied after the introductory period of a credit card.

The smallest amount that must be paid during a billing cycle.

The maximum amount that may be borrowed on a credit card.

What is the Minimum Payment in the context of credit cards?

The smallest amount of a credit card bill that a credit card holder must pay during a billing cycle.

The fee charged for late payment of a credit card bill.

The amount of available credit you’re currently using.

The higher interest rate triggered by being late with or missing a credit card payment.

What does Penalty APR stand for?

A higher interest rate triggered by being late with or missing a credit card payment.

The smallest amount of a credit card bill that must be paid during a billing cycle.

The maximum amount that may be borrowed on a credit card.

The fee charged if a credit card payment is late.

What is the purpose of the Schumer Box according to the federal Truth in Lending Act (TILA)?

To disclose the rates, fees, terms, and conditions of a credit card agreement

To provide a list of all credit card holders

To track credit card transactions

What does the Schumer Box require credit card companies to do?

To print long-term rate information in 18-point type or greater and remaining terms in at least 12-point type

To offer the lowest interest rates

To provide rewards for every purchase

To increase credit card fees annually

What is a Secured Credit Card?

A type of credit card that requires the borrower to pay the company a fixed, up-front amount of money as collateral

A type of credit card that offers unlimited credit

A type of credit card that does not require any form of payment

A type of credit card that automatically increases the credit limit each month

What are Payday Loans known for?

C) Being a small loan, offered at a high interest rate and meant to be paid as soon as you receive your next paycheck.

A) Being a long-term loan with a low interest rate.

B) Being a type of installment loan for auto purchases.

D) Being a loan with a fixed repayment schedule in regular installments.

501-504 Vocabulary Practice Quiz (Credit Basics & Credit Cards)

Quiz

•

Mathematics

•

12th Grade

•

Practice Problem

•

Medium

•

CCSS

RI.9-10.4, L.11-12.4C, 7.RP.A.3

+13

Standards-aligned

Nadia Sandoval-Piper

Used 3+ times

FREE Resource

33 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

3 mins • 1 pt

What is collateral in the context of credit?

The total wealth of an individual or organization.

An asset that a lender accepts as security for a loan.

The amount of money borrowed.

A small loan offered through a business.

Tags

CCSS.L.11-12.4C

CCSS.L.6.4C

CCSS.L.7.4C

CCSS.L.8.4C

CCSS.L.9-10.4C

2.

MULTIPLE CHOICE QUESTION

3 mins • 1 pt

What does a fixed rate imply in a loan?

The interest rate changes based on the debt size.

The interest rate varies each pay period.

The interest rate remains constant during the duration of the loan.

The interest rate is extremely high and must be paid by the next paycheck.

Tags

CCSS.7.RP.A.3

3.

MULTIPLE CHOICE QUESTION

3 mins • 1 pt

What is an installment loan used for?

To pay the interest on a loan only.

To finance a specific purchase for a set amount of time with regular payments.

To borrow money without any interest.

To provide a line of credit for any purchases.

Tags

CCSS.RI.11-12.4

CCSS.RI.7.4

CCSS.RI.8.4

CCSS.RI.9-10.4

4.

MULTIPLE CHOICE QUESTION

3 mins • 1 pt

What is the definition of interest?

The total wealth of an individual minus liabilities.

A sum paid for borrowing money, calculated as a percentage rate.

The amount of money lent by an organization.

A specific asset used as collateral.

Tags

CCSS.RI.11-12.4

CCSS.RI.7.4

CCSS.RI.8.4

CCSS.RI.9-10.4

5.

MULTIPLE CHOICE QUESTION

3 mins • 1 pt

Who is considered a lender?

An individual or organization that borrows money.

An individual or organization that lends money.

An individual or organization that provides collateral.

An individual or organization that charges a high interest rate for small loans.

Tags

CCSS.L.11-12.6

CCSS.L.9-10.6

CCSS.W.11-12.2D

CCSS.W.8.2D

CCSS.W.9-10.2D

6.

MULTIPLE CHOICE QUESTION

3 mins • 1 pt

What does net worth represent?

The interest rate charged for borrowing money.

The amount of money borrowed.

The total wealth of an individual or organization, minus liabilities.

An asset accepted as security for a loan.

Tags

CCSS.6.NS.C.7C

7.

MULTIPLE CHOICE QUESTION

3 mins • 1 pt

What is a payday loan?

A loan with a variable interest rate.

A loan used to finance a specific purchase.

A small loan with a high interest rate meant to be paid by the next paycheck.

A loan that remains constant during its duration.

Tags

CCSS.L.11-12.4C

CCSS.L.6.4C

CCSS.L.7.4C

CCSS.L.8.4C

CCSS.L.9-10.4C

Create a free account and access millions of resources

Create resources

Host any resource

Get auto-graded reports

Continue with Google

Continue with Email

Continue with Classlink

Continue with Clever

or continue with

Microsoft

Apple

Others

Already have an account?

Similar Resources on Wayground

0 questions

Understanding Loans

Quiz

•

0 questions

Credit Quiz

Quiz

•

0 questions

11.4 Review

Quiz

•

0 questions

Loans Review

Quiz

•

Popular Resources on Wayground

5 questions

This is not a...winter edition (Drawing game)

Quiz

•

1st - 5th Grade

15 questions

4:3 Model Multiplication of Decimals by Whole Numbers

Quiz

•

5th Grade

25 questions

Multiplication Facts

Quiz

•

5th Grade

10 questions

The Best Christmas Pageant Ever Chapters 1 & 2

Quiz

•

4th Grade

12 questions

Unit 4 Review Day

Quiz

•

3rd Grade

10 questions

Identify Iconic Christmas Movie Scenes

Interactive video

•

6th - 10th Grade

20 questions

Christmas Trivia

Quiz

•

6th - 8th Grade

18 questions

Kids Christmas Trivia

Quiz

•

KG - 5th Grade

Discover more resources for Mathematics

11 questions

Solve Systems of Equations and Inequalities

Quiz

•

9th - 12th Grade

17 questions

Identify Linear and Nonlinear Functions

Quiz

•

8th - 12th Grade

15 questions

Identify Triangle Congruence Postulates

Quiz

•

9th - 12th Grade

12 questions

Combine Like Terms

Quiz

•

6th - 12th Grade

20 questions

Multi-Step Equations and Variables on Both Sides

Quiz

•

9th - 12th Grade

20 questions

Multiplication and Division Facts

Quiz

•

3rd - 12th Grade

30 questions

Unit 1 Final Review

Quiz

•

9th - 12th Grade

16 questions

Percent Of A Number

Quiz

•

6th - 12th Grade