WorksheetsCredit Review
Total questions: 20
Worksheet time: 53mins
Name
Class
Date
1.
A line of credit established in advance so the borrower does not have to apply for credit each time new credit is desired.
a)
Open‐end credit
b)
Closed‐end credit
2.
A loan which the borrower must repay the amount in a specified number of equal payments.
a)
Closed‐end credit
b)
Open‐end credit
3.
Short‐term loan that provides immediate cash by securing a borrower’s written check or receiving authorization for automatic withdrawal from the borrower’s depository institution account.
a)
Title loan
b)
Payday loan
c)
Refund anticipation loan
d)
Pawn loan
4.
Tangible items leased with the condition that the item will be owned by the renter if the term of rent (contract) is completed.
a)
Refund anticipation loan
b)
Pawn loan
c)
Rent‐to‐own loan
d)
Title loan
5.
A loan based on the value of personal property.
a)
Pawn loan
b)
Payday loan
c)
Refund anticipation loan
d)
Rent‐to‐own loan
6.
The borrower gives the lender his/her automobile title in exchange for a set amount of cash.
a)
Title loan
b)
Rent‐to‐own loan
c)
Pawn loan
d)
Refund anticipation loan
7.
Short‐term cash advance secured by a taxpayer’s expected tax refund.
a)
Title loan
b)
Payday loan
c)
Refund anticipation loan
d)
Pawn loan
8.
Receiving goods or services today.
a)
Credit
b)
Credit Application
c)
Rent‐to‐own loan
d)
Pawn loan
9.
A form requesting information about a credit applicant.
a)
Credit
b)
Credit application
c)
Pay day loan
d)
Title loan
10.
What is the recommended amount to borrow?
a)
Less than 5% of annual income
b)
Less than10% of annual income
c)
Less than 15% of annual income
d)
Less than 20% of annual income
11.
What is a benefit to using money saved instead of credit?
a)
No interest
b)
Pay later to use the bought item now
c)
Reducing the amount of in your savings account
12.
What is the trade-off to no credit history check?
a)
No hassle for you.
b)
higher interest and fees
c)
lower interest and fees
13.
All lenders check a person’s credit report and score during the loan approval process.
a)
True
b)
False
14.
An example of closed‐end credit is a secure credit card.
a)
True
b)
False
15.
If an individual does not meet the credit terms for a pawn loan, the lender will keep the property.
a)
True
b)
False
16.
Evaluating the purpose of credit is an important consideration to using credit responsibly.
a)
True
b)
False
17.
Alternative Credit usually has higher fees than open-end credit.
a)
True
b)
False
18.
A student loan is an example of open-end credit.
a)
True
b)
False
19.
A person should shop around with different lenders to find the best interest rate.
a)
True
b)
False
20.
The government is an example of a credit source.
a)
True
b)
False
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