Credit and Financial Terms Quiz

What is the definition of "Credit"?

• A numeric score that uses your credit history to assess your creditworthiness.

• Money that a lender makes available to a borrower with the understanding that the borrower will repay the money in the future.

• Fees charged by a lender on borrowed money.

• The interest rate you pay on an annual basis.

What is the definition of "Interest"?

• A numeric score that uses your credit history to assess your creditworthiness.

• Money that a lender makes available to a borrower with the understanding that the borrower will repay the money in the future.

• Fees charged by a lender on borrowed money.

• The interest rate you pay on an annual basis.

What does "Credit Score" refer to?

• The maximum that you can borrow at any one time.

• A fee paid once a year for the privilege of using their card.

• A numeric score that uses your credit history to assess your creditworthiness.

• A process in which the courts provide protection for a person who is unable to pay off his or her debts.

Which of the following statements is false?

• 
  Credit cards have minimum monthly payments.

• 
  Credit cards let you spend money that you don’t have.

• 
  Credit cards let you spend unlimited money.

• 
  Credit cards give you the chance to build good credit.

Provides individuals with revolving open-ended credit, which can be drawn from repeatedly up to a preset limit

• Debit Card

• Title Loan

• Credit Card

Financial institutions, such as banks, that agree to make a certain amount of credit available.

• Credit Provider

• Credit Counseling Agency

What is "Annual Percentage Rates (APR)"?

• The interest rate you pay on an annual basis.

• The maximum that you can borrow at any one time.

• A fee paid once a year for the privilege of using their card.

• A time allowed by credit card companies in which you are not charged interest.

What is "Overdraft Protection"?

• A fee paid once a year for the privilege of using their card.

• Allows people to exceed their credit card limit.

• A process in which the courts provide protection for a person who is unable to pay off his or her debts.

• A numeric score that uses your credit history to assess your creditworthiness.

What is an "Annual Fee"?

• A fee paid once a year for the privilege of using their card.

• A penalty fee paid once a year for going over your Credit Limit.

The least amount that must be paid on a credit card each month is

• Minimum Payment

• Credit Limit

• Payment amount

• Late Fee