Financial Literacy Quiz

What is the process of paying off debt over time in equal installments called?

• Collateral

• Amortization

• Credit Limit

• Overdraft Protection

What does APR stand for in financial terms?

• Annual Payment Rate

• Annual Percentage Rate

• Annual Principal Rate

• Annual Profit Rate

What is something valuable that a lender can take if a loan is not repaid?

• Cosigner

• Credit Limit

• Collateral

• Principal

What is an agreement where a borrower receives something of value now and agrees to repay later?

• Credit

• Term

• Interest

• Net Worth

What is the role of a credit bureau?

• To lend money

• To collect and sell credit information

• To provide loans

• To manage bank accounts

What is the maximum amount that may be borrowed on a credit card called?

• Down Payment

• Principal

• Credit Limit

• Minimum Payment

What is a partial payment made out of your pocket at the beginning of a purchase called?

• Interest

• Down Payment

• Term

• Debt

What is the cost of borrowing money referred to as?

• Principal

• Interest

• Net Worth

• FICO Score

What is the smallest amount a credit card holder must pay during a billing cycle?

• Credit Limit

• Minimum Payment

• Down Payment

• Term

What is a loan banks offer to cover withdrawals beyond account balance?

• Overdraft Protection

• Collateral

• Credit Bureau

• Amortization