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WorksheetsUnit 2: Credit, Debt and Interest
Total questions: 13
Worksheet time: 13mins
What is one benefit of borrowing money from a friend or family member instead of from the bank?
You don't have to repay your friends or family if you don't want to
You can borrow more money from a friend or family member because they have more cash than banks
Friends and family cannot legally charge you interest on the loan, and neither can banks
Friends and family will typically work with you to set up a repayment plan you can afford
Which age group tends to have the most credit card debt?
Young adults
Middle-aged people
Senior citizens
Credit card debt is evenly distributed among all age groups
Using this portion of a credit card statement, how much did the credit card owner pay toward their bill last month?
$167.49
$267.49
$400
$2,425
Each of the following factors impacts your credit score EXCEPT...
Payment history
Debit Card Balance
Mix of credit types
Length of credit history
What is the key difference between a credit card and a debit card?
Credit cards allow you to borrow money to pay for things, while debit cards take money straight from your own checking account
Wealthy people use credit cards, while people with lower incomes use debit cards
Credit cards come from credit unions, while debit cards come from banks
You can only use credit cards if you are over 25, but you can use debit cards as long as you are over 18
Helena has a credit card limit of 10,000 dollars on her credit card. She has spent all 10,000 dollars online shopping. What is another statement for what has she done?
paid her minimum balance
maxed out her credit card
Paid interest on her statment
applied for a loan
What is the best way to avoid going into large debt or paying large amounts of interest on your credit card?
Avoid paying the bill every month so your bank account stays high
Pay the minimum monthly payment on time every month
Pay half your balance every month
Pay your full balance every month
Looking at this credit card statement, what is the minimum payment the needs to paid for the month?
$245.00
$40.00
$150.00
$400.00
At what age can you apply for a credit card or loan?
21
16
18
80
Miguel's parents keep telling him he should worry about his credit score. He says, "Why bother?" Why should Miguel care?
A high credit score will make it easier for him to get loans or credit cards with better interest rates
A low credit score will make it easier for him to get loans or credit cards with better interest rates
If his credit score is positive, lenders will allow him to pay back only a portion of his loan instead of the whole balance
Miguel will not be able to apply for colleges if he doesn't have a strong credit score
The following items are all things you would purchase with a loan, EXCEPT....
college education
groceries
car
home
What happens when you use your debit card?
money is pulled directly from your savings account
money is pulled directly from your checking account
You are borrowing money from your bank to make a purchase
You are borrowing an item/service now with the promise to pay later
An amount of money that is typically owed or due.
interest
application
debt
debit
