WorksheetsCredit Terms
Total questions: 11
Worksheet time: 6mins
Credit is...
Ability to obtain goods before a cash payment
How trustworthy you are
Points on an exam
Ability to pay back loans without interest
If you owe money to someone, you're called a...
Creditor
Debtor
Loaner
Moaner
Sameer lends you $5.00 to get lunch. He is called...
A debtor
A lendee
A gym rat
A creditor
Many people need this to pay for college...
A grant
A cash advance
A loan
A promise from Michael Scott
Who uses credit? (choose more than 1)
Households (people)
Businesses
Governments
Bill Gates
Which of the following should we consider when determining who to issue credit to?
Your character (trustworthiness)
Your capacity to pay back
The amount of time you've worked
The amount of assets you own
I'm a trustworthy person - I pay back my loans every month. This is called...
Capacity
Character
Contentment
Capital
I make $170,000 a year and want to take out a loan. My ability to pay back my loan due to my high income is my...
Capacity
Character
Contentment
Capital
I own a car, a boat & house. I've paid them all off. I want to get a loan for a private jet. If you consider all my assets when determining if you should lend me money, you're looking at my...
Capacity
Contentment
Capital
Character
Which of the following are benefits of using credit?
More convenient than cash
Digital records of everything purchased
Acts as a source of free money
Able to pay for things months or years after buying, without fees
Which of the following are downsides of using credit?
Swiping a card means you aren't keeping track of the money you spend as much
If you get it stolen you can cancel your card
You'll be charged interest if you don't pay your credit card off
You have to pay a $100 fine to get your first credit card
