7 Credit Business U Actual Quiz

Fill in the blank: The total cost of borrowing money for one year, expressed as a rate, is called _________.

• Annual Percentage Rate (APR)

• Compound Interest Rate

• Fixed Deposit Rate

• Loan Origination Fee

Fill in the blank: A method to calculate interest charges based on the sum of the balances owed each day, divided by the number of days in the billing period, is called _________.

• Average Daily Balance

• Previous Balance Method

• Adjusted Balance Method

• Ending Balance Method

Fill in the blank: An electronic method of payment allowing the card owner to purchase goods and services on credit is called a _________

• Credit Card

• Debit Card

• Gift Card

• Prepaid Card

Fill in the blank: The time during which a credit card holder can repay their balance without incurring interest charges is called the _________.

• Grace Period

• Billing Cycle

• Credit Limit

• Annual Fee

Fill in the blank: Additional costs that credit card issuers charge their customers if they don't pay at least the minimum monthly payment amount on their credit card statement are called _________.

• Late Fee

• Annual Fee

• Balance Transfer Fee

• Cash Advance Fee

Fill in the blank: A percentage charged on a loan over a specific period of time is called _________.

• Periodic Interest Rate

• Principal Amount

• Loan Tenure

• Credit Score

Fill in the blank: A report showing loan principal and interest amounts owed, and due dates, for each payment is called an _________.

• Amortization Schedule

• Balance Sheet

• Income Statement

• Trial Balance

Fill in the blank: An asset a borrower pledges to a lender as security for repayment of a loan is called _________.

• Collateral

• Dividend

• Equity

• Revenue

Fill in the blank: An upfront partial payment made at the time of purchase, representing a percentage of the total purchase price, to secure the transaction and reduce the amount financed by a loan is called a _________?

• Down Payment

• Installment

• Interest

• Collateral

Fill in the blank: An interest rate that stays constant, or 'fixed', regardless of what happens to economic and/or financial conditions over the term of a loan is called a _________

• Fixed Interest Rate

• Variable Interest Rate

• Floating Interest Rate

• Adjustable Interest Rate