Types of Credit Quiz

Adjustable-Rate Mortgage (ARM): A mortgage in which the initial interest rate is normally fixed for a specified period of time after which it is reset periodically, often every month. An ARM is a type of:

• mortgage

• loan

• investment

• savings account

A 401(k) Loan is borrowed from your _______.

• retirement savings account

• bank account

• credit card

• emergency fund

Amortization involves paying off debt in _______.

• equal installments

• unequal installments

• lump sum payments

• random amounts

Fill in the blank: An annual fee is charged _______.

• yearly

• monthly

• weekly

• daily

Fill in the blank: APR stands for _______.

• Annual Percentage Rate

• Annual Payment Rate

• Average Percentage Rate

• Annual Principal Rate

An authorized user is not responsible for _______.

• paying the bill

• managing the account

• updating the software

• ensuring data backup

A balance transfer involves moving debt from one _______ to another.

• credit card account

• bank account

• savings account

• loan account

A cash advance allows you to withdraw _______.

• cash

• credit

• checks

• loans

Cash back is a benefit that pays a percentage of _______.

• net expenditures

• gross income

• total savings

• monthly salary

A special type of credit card with no interest because you must pay the balance in full each month. What is this type of card called?

• Charge Card

• Credit Card

• Debit Card

• Prepaid Card