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WorksheetsUsing Credit
Total questions: 20
Worksheet time: 11mins
Name
Class
Date
1.
The maximum amount you are allowed to carry as a balance on the card
a)
interest
b)
ARP
c)
credit limit
d)
all of these
2.
To build a good credit history, you should
a)
open as much credit as possible quickly
b)
use the maximum credit allowed on all your credit cards
c)
pay on time and as much of your balance as possible
d)
all of these
3.
Over time, people who pay off their credit card balance in full every month will pay less in interest on their credit card.
a)
true
b)
false
4.
What does APR stand for?
a)
American Peoples Reports
b)
Annual Progress Report
c)
American Percentage Rate
d)
Annual Percentage Rate
5.
What is credit?
a)
Free money
b)
Borrowed money
c)
Standard of living
d)
A term that causes tears
6.
The cost of borrowing money is referred to as
a)
Interest
b)
Annual Percentage Rate
c)
Credit
d)
Credit Line
7.
To build a good credit history, you should
a)
pay the minimum or more on your account each month
b)
pay on time or early
c)
be careful not to take on too much debt
d)
all of these
8.
All of the following will help you develop credit except what?
a)
Credit Card
b)
Mortgage
c)
Student Loan
d)
Paying Cash
9.
______________ help hardworking people fund businesses in low-income communities as part of a plan to reduce poverty.
a)
Microloans
b)
Microscopes
c)
Business loans
10.
Credit is merely a tool to buy something now and pay for it later.
a)
True
b)
False
11.
These are all reasons why people borrow money instead of paying cash, except
a)
convenience
b)
instant gratification
c)
protection
d)
delayed gratification
12.
Building a credit history is one reason people borrow money.
a)
True
b)
False
13.
This type of credit lets you borrow up to a maximum dollar amount whenever you want, without applying for credit each time.
a)
Revolving credit
b)
installment credit
c)
cash loans
d)
service credit
14.
With this type of credit, the entire loan amount is paid to you at once. Then, you repay the loan, with interest, in a set number of equal payments by a specific payoff date.
a)
Revolving credit
b)
installment credit
c)
cash loans
d)
service credit
15.
This type of loan is also known as a personal loan.
a)
Revolving credit
b)
installment credit
c)
service credit
d)
cash loans
16.
Electrical service or phone service are examples of this type of credit.
a)
installment credit
b)
Revolving credit
c)
cash loans
d)
service credit
17.
This type of credit is also known as closed-ended credit.
a)
Revolving credit
b)
installment credit
c)
cash loans
d)
service credit
18.
The amount you pay to use someone else's money is also called --------- and is a percentage of the principal
a)
Cash flow
b)
Interest
c)
APR
d)
Debt
19.
------------ is also known as closed-ended credit because the entire loan amount is paid to you at once. Then, you repay the loan, with interest, in a set number of equal payments by a specific payoff date.
a)
Credit card
b)
Cash loan
c)
Installment credit
20.
The simple interest formula is a quick way to calculate interest.
a)
True
b)
False
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