Credit and Financial Terms Quiz

What is the definition of "Credit"?

• A plastic card that allows purchases with borrowed money

• Borrowing money or having the right to borrow money

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

• A fee charged if your payment is late

What does a "Credit Card" allow you to do?

• Borrow money without repayment

• Make purchases now with borrowed money to be repaid later

• Determine the maximum amount that may be borrowed

• Create a scoring model using credit history

What is a "Credit Limit"?

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

• A legal document outlining credit card terms

• A fee charged for late payments

• A percentage charged by a lender

What is a "Credit Card Agreement"?

• A plastic card for purchases

• A legal document outlining terms and conditions for using a credit card

• A fee for late payments

• A number from a scoring model

Who is a "Cosigner"?

• Someone who charges a fee for late payments

• Someone who legally agrees to take responsibility for a person's debt

• Someone who determines the credit limit

• Someone who creates a credit score

What is an "Interest Rate"?

• A fee for late payments

• A percentage of a sum borrowed charged by a lender

• The maximum amount that may be borrowed

• A legal document for credit card use

What does "Term" refer to in financial context?

• The amount of money originally received from a lender

• A fixed or limited period of time for which something lasts

• A fee charged for late payments

• A number from a scoring model

What is "Principal" in terms of a loan?

• The maximum amount that may be borrowed

• The amount of money originally received from the lender

• A fee charged for late payments

• A percentage charged by a lender

What is a "Late Payment Fee"?

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

• A percentage of a sum borrowed

• The maximum amount that may be borrowed

• A legal document for credit card use

What is a "Credit Score"?

• A plastic card for purchases

• A number from a scoring model using credit history

• A fee for late payments

• A legal document for credit card use