Finance and Credit Quiz

Which loan typically has the highest interest rate?

• Personal Loan

• Auto Loan

• Payday Loan

• Student Loan

What does APR stand for?

• Annual Payment Rate

• Additional Percentage Rate

• Average Payback Ratio

• Annual Percentage Rate

True or False: A longer loan term usually means smaller monthly payments but more total interest paid.

• True

• False

What is the minimum payment on a credit card?

• The full balance

• A percentage of the balance

• Half the interest

• The total interest

Which is a fixed expense?

• Groceries

• Movie tickets

• Rent

• Gas

What does it mean to “carry a balance” on a credit card?

• You paid the card in full

• You owe money past the due date

• You canceled the card

• You earned cashback rewards

Which of the following is NOT one of the 5 C’s of Credit?

• Credit History

• Character

• Capacity

• Credit Score

What does “Character” refer to in the 5 C’s of Credit?

• Your criminal record

• Your job title

• Your reputation and credit history

• Your personality

What does “Collateral” mean?

• The fees you pay on a loan

• The backup plan for repaying a loan

• An asset you pledge in case you can't repay the loan

• Another name for your co-signer

Which statement about payday loans is TRUE?

• They are a good long-term solution

• They have low interest rates

• They are due on your next payday

• They help build credit