Credit and Financial Concepts Quiz

What is the ability to borrow money called?

• Investment

• Credit

• Interest

• Bond

What type of credit involves ongoing borrowing, such as with credit cards?

• Installment credit

• Service credit

• Revolving credit

• Commodity credit

What does a credit score represent?

• Your income level

• Your creditworthiness

• Your spending habits

• Your savings amount

What is the annual percentage rate (APR)?

• The maximum amount you can charge

• The price you pay to borrow money

• The annual interest rate charged

• The lowest amount you must pay monthly

What is the lowest amount you must pay monthly on a credit card called?

• Credit limit

• Minimum payment

• Interest rate

• Service fee

What is the purpose of the Federal Reserve?

• To provide loans to individuals

• To regulate stock markets

• To act as the central banking system of the United States

• To manage foreign exchange

What is the term for allocating money with the expectation of future returns?

• Saving

• Spending

• Investment

• Borrowing

What type of money involves the use of electronic payments and cryptocurrencies?

• Paper money

• Commodity money

• Digital money

• Foreign exchange

What are markets where company shares are traded called?

• Bond markets

• Stock markets

• Commodity markets

• Foreign exchange markets

What is the term for the price you pay to borrow money?

• Credit

• Interest

• APR

• Minimum payment