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Credit Quiz-Management

Total questions: 15

Worksheet time: 8mins

Name
Class
Date
1.

A disadvantage of using credit is impulse buying

a)

True

b)

False

2.

Capital refers to a person’s assets.

a)

True

b)

False

3.

What is principal?

a)

The fee that is paid to borrow money

b)

The rate lenders charge borrowers for money.

c)

The non-interest portion of a loan.

d)

The paying off of a debt with a fixed repayment schedule in regular installments over a period of time.

4.

Paying your bills on time is a characteristic of:

a)

capital

b)

character

c)

capacity

5.

Having a steady job is an example of:

a)

character

b)

capacity

c)

capital

6.

Installment credit usually allows a person to make additional purchases on an account.

a)

True

b)

False

7.

A common advantage of using credit is:

a)

less impulse buying

b)

lower cost for items purchased

c)

lower chance of overspending

d)

ability to obtain needed items now

8.

APR is the _______ rate charged by a credit card.

a)

Interest

b)

Collateral

c)

Assets

d)

Credit Report

9.

Character answers which of the following question?

a)

will you repay the debt?

b)

what if you don’t repay the debt?

c)

can you repay the debt?

10.

Paying for a jacket with a credit card is considered what type of credit?

a)

installment

b)

revolving

c)

single-payment

11.

Name one way to protect your account information.

a)

let your friend use your cards

b)

post your account numbers on Facebook

c)

throw your account statements in the trash

d)

avoid giving account numbers over the phone

12.

Monthly telephone bill

a)

Single-payment credit

b)

Installment credit

c)

Revolving Credit

13.

If your take home pay is $400, what should be the maximum monthly payment on your debt?

a)

$40

b)

$4

c)

$80

d)

$800

14.

If your yearly income is $3000, your maximum debt amount should be no more than?

a)

$600

b)

$60

c)

$300

d)

$30

15.

Monthly student loan payment

a)

Installment

b)

Revolving

c)

Single Payment

d)

Collateral