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Money Matters Credit Quiz

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

An account in which the buyer pays according to a set schedule of payments is

a)

cash loan

b)

credit rating

c)

installment account

d)

revolving charge account

2.

The actual rate of interest charged on a yearly basis is

a)

interest

b)

annual percentage rate

c)

finance charges

d)

collateral

3.

The total amount a borrower must pay for the use of credit

a)

finance charges

b)

credit agreement

c)

installment account

d)

cash loan

4.

Benefits of credit cards include:

a)

safe and convenient, bonuses are offered

b)

allows you to build a positive credit report

c)

needed for reservations and online shopping

d)

all of these

5.

Benefits of credit cards include:

a)

safe and convenient, bonuses are offered

b)

allows you to build a positive credit report

c)

needed for reservations and online shopping

d)

all of these

6.

Which one is considered a danger of using a credit card

a)

no cash needed

b)

leads to overspending

c)

convenient

d)

earns rewards

7.

Which one is considered a danger of using a credit card

a)

no cash needed

b)

leads to overspending

c)

convenient

d)

earns rewards

8.
What is credit?
a)
Free money
b)
Borrowed money
c)
Standard of living
d)
A term that causes tears
9.

The amount charged if your payment is received after the billing due date.

a)

late payment fee

b)

use fee

c)

interest fee

d)

loser fee

10.
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
11.

Your credit score impacts your car loan rates.

a)

True

b)

False

12.

What is the best way to improve your credit score?

a)

Make credit card payments on time.

b)

Apply for more cards.

c)

Apply only for Visa cards.

d)

All of the options are true.

13.

Which of the following can be a source of credit?

a)

Credit Card Company

b)

Private Mortgage Company

c)

Depository Institution (Bank)

d)

All of the Above

14.

When you borrow you are using future income.

a)

True

b)

False

15.

A good reason to use credit instead of cash is having interest rates on your purchase.

a)

True

b)

False

16.

Examples of closed-end credit include all of the following except:

a)

mortgage

b)

automobile loan

c)

credit card

d)

student loan

17.

Alternate credit sources usually have lower interest rates than standard credit sources.

a)

True

b)

False

18.

Short-term loan that provides immediate cash by securing a borrower's written check or automatic withdrawal for.

a)

Rent-to-Own

b)

Credit Card

c)

Payday Loan

d)

Refund Anticipation Loan

19.

A potential creditor usually checks your credit report when you apply for standard type of credit.

a)

True

b)

False

20.

You do not need to evaluate a contract before you sign it.

a)

True

b)

False