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Ch 4 Debt REVIEW

Total questions: 18

Worksheet time: 36mins

Name
Class
Date
1.

The cost of borrowing money on an annual basis.

a)

Loan term

b)

Credit Score

c)

Annual Percentage Rate

d)

Annual fee

2.

A decrease or loss in value.

a)

Appreciation

b)

Depreciation

c)

Deficit

d)

Decline

3.

A detailed report of an individual's credit history.

a)

Credit report

b)

Credit score

c)

Loan term

d)

Credit Karma

4.

Time frame that a loan agreement is in force and at the end of which the loan should be repaid.

a)

Annual fee

b)

Loan term

c)

Annual Percentage Rate

d)

Cycle of debt

5.

Type of card issued by a bank that allows users to finance a purchase.

a)

Debit card

b)

Credit card

c)

Platinum card

d)

Bank card

6.

A measure of an individual's credit risk. Calculated from a credit report using a standardized formula.

a)

Credit report

b)

Credit karma

c)

Credit score

d)

EZ Credit

7.

A yearly fee that is charged by the credit card company for the convenience of the credit card.

a)

Annual fee

b)

Annual Percentage Rate

c)

Cash back

d)

Rewards

8.

Preferred method of debt repayment. A list of all debts from smallest to largest balance, attacking the smallest with the largest possible payment.

a)

Debt consolidation

b)

Debt snowball

c)

Debt negotiation

d)

Debt repayment plan

9.

You must establish credit in order to buy a house.

a)

True

b)

False

10.

If you are a victim of identity theft, you are only responsible to paying back half of the debt.

a)

True

b)

False

11.

Which of the following is NOT a factor in determining a FICO score.

a)

Paying cash for all purchases

b)

Getting a personal loan from a bank

c)

Using credit cards

d)

Taking out a mortgage on a house

12.

Which of the following is NOT a good idea for getting out of debt?

a)

Quit borrowing money

b)

Get a part-time job or work overtime

c)

Borrow money from your parents to pay off debt

d)

Sell something

13.

Which of the following things cannot be done with a debit card but can be done with a credit card?

a)

Rent a car

b)

Purchase something online

c)

Go into debt

d)

Purchase an airline ticket

14.

If you are using the debt snowball method and have a $35 minimum payment on your Visa bill, what would your new payment be if you found an extra $150 to put towards it?

a)

$35

b)

$150

c)

$185

d)

$5,250

15.

In what order do you pay your debts using the debt snowball method?

a)

Smallest to largest interest rate

b)

Smallest to largest balance

c)

Smallest to largest minimum payment

d)

Alphabetical order

16.

If you are using a rent-to-own store and the Playstation you are renting is $45.99 per week for 48 weeks, what is the total cost to eventually own the item?

a)

$93.99

b)

$2,069.55

c)

$2,207.52

d)

$2,204.55

17.

If you rented a couch for $5,650 and could have bought it at Levin's for $2,325, how much did you overpay?

a)

$1,530

b)

$2,325

c)

$3,325

d)

$3,515

18.

If you overpaid $925 for a TV at Aaron's Rent-To-Own and could have paid $985 cash at Walmart, what interest rate was Aaron's charging you to rent the TV?

a)

88%

b)

94%

c)

103%

d)

106%