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WorksheetsConsumer Credit
Total questions: 28
Worksheet time: 14mins
Non-revolving consumer credit is a kind of credit that allows the consumer to draw credit for a particular amount.
True
False
Non-instalment credit requires the consumer to repay the full amount of the loan in a lump sum.
True
Dalse
A credit card is non-revolving credit which allows the consumer to make purchases on credit.
True
False
The credit rating represents the ability of an individual to earn money by using a rating.
True
False
A person who has a good personal credit record is generally charged a lower interest rate when he applies for a loan.
True
False
Which of the following is not a classification of consumer credit?(1) Revolving consumer credit
(2) Fixed consumer credit
(3) Instalment credit
(1) only
(2) only
(3) only
(1) and (2) only
Which of the following is non-revolving credit?
Car loans
Credit cards
Overdraft facilities on current account
None of the above
Which of the following affects the amount of credit available?(1) Repayment amount
(2) Credit limit
(3) Outstanding amount
(1) and (2) only
(1) and (3) only
(2) and (3) only
(1), (2) and (3)
Which of the following are instalment loans?
Tax loans
Mortgage lans
Car loans
All of the above
Which of the following would affect a good credit record?
Avoid late payments
Maintain a good habit of financial discipline
Avoid impulse purchases
Apply for more credit cards
Which of the following are likely to accept credit cards?
(1) A department store
(2) An electrical appliance store
(3) A hawker
(4) A small grocery store
(1) and (2) only
(1) and (4) only
(2) and (3) only
(2) and (4) only
Which of the following is a credit card operator?
Citibank
TransUnion
American Express
Hang Seng Bank
Which of the following statements about a personal credit record is not correct?
A person with a good credit rating can borrow money at a lower interest rate.
Financial institutions are not willing to make loans to people who have a bad personal credit record.
A personal credit record will not be affected by the number of credit cards that a person is holding.
A bad personal credit record affects a person’s personal resume.
What is a good way to maintain financial discipline?
Evaluate budgeted against actual spending
Apply for credit cards when there are promotions
Utilise the credit limit of a credit card fully
Overdraft money to make purchases
Who is more likely to enjoy a lower interest rate when borrowing money?
A civil servant
A lawyer
A doctor
All of the above
Credit is categorised into:
(1) revolving and non-revolving
(2) instalment and non-instalment
(3) fixed and floating
(1) and (2) only
(1) and (3) only
(2) and (3) only
All of the above
Which of the following is not a benfit of using consumer credit?
(1) A chance to acquire expensive items
(2) Do not need to carry lots of cash for shopping
(3) Higher interest payments
(1) only
(2) only
(3) only
(1) and (3)
Which of the following is revolving credit?
Credit cards
University grant loans
Mortgage loans
Car loans
Credit available is the difference between _______ and _______.
Credit limit ... outstanding amount
Credit limit ... repayment amount
repayment amount ... outstanding amount
repayment amount ... credit limit
Which of the following institution assess individual credit worthiness in Hong Kong?
Moody's
Standard and Poor's
TransUnion
Fitch Ratings
We should __________ to Keep a good credit record.
Keep less than two credit cards
avoid late payments
keep the loan to as little as possible
keep the number of purchase to as few as possible
Which of the following is not a credit card operator
MasterCard
American Express
HSBC
VISA
Which of the following is not an advantage od using a credit card?
Convenience
Improve the credit rating
Payment flexibility
Worldwide acceptance
Which of the following institutions would access the database of credit reference agencies?
(1) Finance companies
(2) Banks
(3) Inland Revenue Department
(4) Business Registration Office
(1) and (2) only
(1) and (4) only
(2) and (3) only
(2) and (4) only
A consumer has a hihger credit score if he has _______ assets and _______ liabilities
more ... more
more ... less
less ... more
less ... less
Chi Ming plans to buy a $10,000 audio-visual set with a credit card. Which of the following is not a factor for choosing the type of credit?
Interest rates
Repayment period
Loan amount
Promotions of the different loan companies
Which of the following types of credit does not require successive applications?
Tax loans
Cash advances
Marriage loans
Travel loans
Which of the following is a disadvantage of instalments?
(1) Interest needs to be paid in each instalment.
(2) Convenient for consumers to buy expensive goods.
(3) The ownership of goods is transferred to consumers only after settling all of the instalments.
(1) only
(1) and (2) only
(1) and (3) only
All of the above
