Personal Finance Quiz #2

A credit card allows you to buy goods and services using ____

• Cash

• Silver

• Bitcoin

• Debt

Which of the following is a common feature of credit cards?

• Interest-free loans

• Unlimited spending

• Cashback rewards

• Free travel tickets

What is the primary purpose of a credit card statement?

• To show your credit score

• To list your transactions and balance

• To offer new credit card deals

• To provide investment advice

What happens if you only pay the minimum amount due on your credit card?

• Your interest rate decreases

• Your credit limit increases

• You avoid late fees but incur interest charges

• You get a reward bonus

Financial aid that does not need to be repaid; generally based on financial need

(definition from Ramsey Classroom)

• Loan

• Grant

• Silver Certificate

• Deed

The charge for borrowed money generally defined as a percentage; also, the earned interest on money you save or invest (definition from Ramsey Classroom)

• Bonds

• Stock

• Debt

• Interest

Financial aid that does not need to be repaid; awarded on the basis of academic, athletic, achievement, or other criteria (definition from Ramsey Classroom)

• Spender

• Loan

• Grant

• Scholarship

What is the term for the amount of money you owe to lenders?

• Credit

• Debt

• Equity

• Asset

Which of the following is a benefit of having a high credit score?

• Higher interest rates on loans

• Lower interest rates on loans

• Increased debt

• More credit card fees

What is the primary purpose of a budget?

• To track your spending and savings

• To increase your debt

• To decrease your income

• To avoid paying taxes