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WorksheetsUnit 2 Quest
Total questions: 31
Worksheet time: 16mins
Name
Class
Date
1.
Which of the following is NOT a credit bureau?
a)
Transunion
b)
FICO
c)
Equifax
d)
Experian
2.
Information from your credit report can come from all of the following places except...
a)
Your employer
b)
Medical providers
c)
Banks
d)
Credit Card companies
3.
Using debit cards can improve your credit score
a)
TRUE
b)
FALSE
4.
"How reliable is your income?" is an example of a question that relates to your credit...
a)
Character
b)
Capacity
c)
Collateral
d)
Charcoal
5.
"Do you have a savings account?" is an example of a question that relates to your credit...
a)
Character
b)
Capacity
c)
Collateral
d)
Calligraphy
6.
"Do you pay your bills on time?" is an example of a question that relates to your credit...
a)
Character
b)
Collateral
c)
Capacity
d)
Cell phone
7.
The higher the credit score the less likely a person is to be delinquent on a loan payment.
a)
True
b)
False
8.
Everyone is entitled to a free credit report each year as long as they have credit.
a)
TRUE
b)
FALSE
9.
John has a credit score of 560. He will probably qualify for LOW interest rates when taking out a loan.
a)
TRUE
b)
FALSE
10.
Which of the following factors influences credit scores?
a)
Race
b)
Income
c)
Educational level
d)
Number of credit inquiries
11.
Which factor influences credit scores the MOST?
a)
Amounts owed
b)
Payment history
c)
Types of credit
d)
Length of credit history
12.
Low income + high credit score = higher credit limit
a)
TRUE
b)
FALSE
13.
Credit cards are considered revolving lines of credit.
a)
TRUE
b)
FALSE
14.
The price of credit is called
a)
Interest rate
b)
APR
c)
Principal
d)
Surcharge
15.
Truth in Lending Law requires that all lenders can state their finance charge and interest rates in different ways.
a)
TRUE
b)
FALSE
16.
This is the rate you pay in a single year on the money borrowed.
a)
Principal
b)
APR
c)
Finance charge
d)
Interest
17.
The finance charge of a loan depends on all of the following except
a)
Interest rate
b)
Loan fees
c)
Principal
d)
Credit report
18.
With a higher APR and a longer the period of the loan, the finance charge will be...
a)
Smaller
b)
Larger
c)
The same
19.
Credit cards can offer benefits that include all of the following EXCEPT...
a)
Cash back
b)
Tax breaks
c)
Airlines miles
d)
Reward points
20.
Which method of calculating interest is more favorable to the card holder?
a)
Previous balance method
b)
Adjusted balance method
c)
Average daily balance method
d)
Balance beam method
21.
Which method of calculating interest is more favorable to the card holder?
a)
Previous balance method
b)
Adjusted balance method
c)
Average daily balance method
22.
Which method of calculating interest is more favorable to the creditor or lender?
a)
Previous balance method
b)
Adjusted balance method
c)
Average daily balance method
d)
Maximum yearly balance method
23.
To shop for a loan a borrower must decide on all of the following EXCEPT
a)
Type of loan
b)
Amount to be borrowed
c)
Their favorite bank
d)
Number of years to repay the loan
24.
A common mistake when shopping for a loan is not asking for both the APR and finance charge.
a)
TRUE
b)
FALSE
25.
What is the recommended down payment amount when purchasing a car?
a)
0%
b)
5%
c)
10%
d)
15%
26.
When purchasing a car, it is more important to have a lower interest rate than a lower monthly payment.
a)
TRUE
b)
FALSE
27.
Insurance costs between a new and used car will be the same over the course of time.
a)
TRUE
b)
FALSE
28.
New cars lose most of their value within ______ year(s).
a)
1
b)
2
c)
5
d)
10
29.
It is possible to negotiate with the dealer on the base price and documentation fee, but NOT on the registration and sales tax paid for the car.
a)
TRUE
b)
FALSE
30.
In Illinois, car owners must purchase a new license plate sticker each year.
a)
TRUE
b)
FALSE
31.
For the first 5 years of ownership, used cars will save more money than a new car in all of the following categories except...
a)
Cost of car
b)
Maintenance and repairs
c)
Insurance
d)
Cost to finance
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