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The Consumer Credit

Total questions: 18

Worksheet time: 7mins

Name
Class
Date
1.

The bank uses a ... to find out how prospective borrowers repaid their past debts.

a)

profile

b)

loan agreement

c)

credit bureau

d)

budget

2.

Because Mr. Parker is ..., his application for a loan is approved.

a)

creditworthy

b)

profile

c)

on time

d)

character

3.

A contract between a lender and a borrower is called ...

a)

loan agreement

b)

credit bureau

c)

installment sales credit

d)

consumer credit

4.

The other name for credit bureau is ...

a)

reporting agency

b)

character

c)

passbook loan

d)

loan agreement

5.

If an applicant is creditworthy, the bank needs the signatures of both applicant's and his/her wife/husband.

a)

TRUE

b)

FALSE

6.

Three kinds of data that the computer at the reporting agency has are ...

a)

a person's background

b)

a person's history of borrowing and repayment

c)

a person's employment record

d)

a person's family background

7.

You can't ask for a new loan until you repay the ... of the old loan.

a)

balance

b)

installments

c)

data

d)

cash flow

8.

Three things that a consumer who applies for an installment sales credit usually has to do are...

a)

buy a merchandise

b)

make a down payment

c)

sign a contract to repay the balance, interest and service charges

d)

pay in specified period of time

9.

Before applying for a loan, three things that the lender wants to know about the borrower are ...

a)

the employment record

b)

how long he has lived at his present address

c)

the earnings

d)

the numbers of family

10.

Passbook loans are ...

a)

hard to get

b)

using the savings account as collateral

c)

using the checking account as collateral

d)

always allowing consumers to receive merchandise

11.

Ms. Sisca is paying for her new car in monthly ...

a)

installments

b)

budgets

c)

cash flow

d)

profile

12.

Loan agreement is a contract between a lender and a borrower in a reporting agency.

a)

TRUE

b)

FALSE

13.

The movement of money to and from a firm or individual is called ...

a)

cash flow

b)

budget

c)

balance

d)

credit

14.

Potential borrowers should develop a profile of their monthly expenses ...

a)

to see how much money left to make a loan payment

b)

to begin processing the loan application

c)

to start filling out the loan application forms

d)

to be creditworthy and wealthy

15.

A budget is ...

a)

a list of costs and expenses

b)

a person's moral quality

c)

the sum or amount that the borrower still has to pay

d)

the part of a debt that the borrower has not yet repaid

16.

An outstanding amount is ...

a)

a list of costs and expenses

b)

a person's moral quality

c)

the sum of money that the borrower still has to pay

d)

the part of a debt that the borrower has paid

17.

These pairs have similar meaning, except ....

a)

credit bureau and reporting agency

b)

balance and outstanding amount

c)

installment and on time

d)

character and creditworthy

18.

For applying a loan, the bank uses a reporting agency to investigate the applicant's character.

a)

TRUE

b)

FALSE