Ways to Pay - Pre-Assessment Questions

Income earned on an hourly basis is called a:

• salary

• stipend

• wage

• benefit

Which factor has the biggest impact on a credit score?

• Payment history

• Type of credit

• Amount owed

• Length of credit

Ashley wants to use money from her checking account to make a purchase. Which payment method should she use?

• Credit card

• Debit card

• Direct deposit

What is the best strategy for avoiding credit card interest?

• Pay the full balance each month

• Skip payments

• Pay the minimum balance

• Make payments online

Which of the following is the best reason to use cash for purchases?

• Getting more from the ATM is easy to do

• Keeping track of how much you have spent is simple

What factor has the biggest impact on a credit score?

• Having a variety of types of credit

• The amount of money you owe on your credit cards

• Your history of making payments on time

• The number of years that you have used credit responsibly

What is the best strategy to avoid paying interest on your credit cards?

• Pay the minimum balance each month

• Pay the full balance each month

• Have credit cards from two different banks

• Make payments online

Which of the following is not a source of income?

• Your annual salary for doing your job

• Your monthly student loan payment

• The stipend you receive for doing an internship

• The wages you receive after a work shift

Which of the following statements is TRUE:

• Applying for several lines of credit in a short period of time can help boost a person’s credit score.

• Paying off a credit card balance in full can have a negative impact on someone’s credit score.

• The longer you use credit responsibly, the higher your credit score

• Low risk borrowers tend to have low credit scores.

Which of the following statements is TRUE about payday loans?

• They are harder to pay back because of low fees and high interest rates

• They are harder to pay back because of high fees and high interest rates

• They are easier to pay back because of lower fees and higher interest rates

• They are easier to pay back because of lower fees and lower interest rates