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PFM Chapter 10 Credit

Total questions: 25

Worksheet time: 13mins

Name
Class
Date
1.

One large loan used to pay off a number of small loans is a

a)

installment loan

b)

secured loan

c)

unsecured loan

d)

debt consolidation loan

2.

Credit cards that do not allow you to carry a balance from month to month

a)

secured loan

b)

revolving charge account

c)

installment

d)

regular charge account

3.

The finance charge calculated as a percentage of the amount borrowed is the

a)

grace period

b)

annual percentage rate

c)

annual fee

d)

interest

4.

A measure of your sense of financial responsibility

Show Answers

a)

capacity

b)

credit

c)

character

d)

capital

5.

A measure of your financial ability to repay loan

Show Answers

a)

capacity

b)

character

c)

credit

d)

capital

6.

The value of what you own

a)

capacity

b)

credit

c)

character

d)

capital

7.

Credit cards that do allow you to carry a balance from one month to the next

a)

installment

b)

revolving charge account

c)

regular charge account

d)

secured

8.

A loan that is backed by something of value pledged to insure payment is a

a)

non-secured loan

b)

secured loan

c)

signature loan

d)

unsecured loan

9.

A company that collects information about consumers credit history and sells it to lenders is a

a)

bank

b)

credit board

c)

credit bureau

d)

savings and loan associations

10.

A measure of your credit worthiness is your

a)

credit rating

b)

credit

c)

credit debt

d)

finance charge

11.

The entire debt is due immediately if you miss a single payment on a loan

a)

grace period

b)

balloon

c)

balloon finance charge

d)

acceleration clause

12.

If you want to get cash for personal property such as jewelry or a TV then you need to see a

a)

banker

b)

loan officer

c)

pawnbroker

d)

rent-to-own

13.

If you cannot pay debts and must surrendered most of their property is called

a)

an acceleration clause

b)

debt

c)

bankruptcy

d)

debt consolidation

14.

The maximum amount you are allowed to charge on your account is the

a)

quota

b)

account ceiling

c)

credit limit

d)

maximum

15.

The time between the billing date and the payment due date when no interest is charged

a)

credit period

b)

interest period

c)

grace period

d)

finance period

16.

Which of the following are sources of credit cards

a)

Visa, MasterCard, American, and Discover

b)

Visa, MasterCard, American Express, and Discover

c)

Visa, MasterCredit, American Express, and Discover

d)

Visa, MasterCard, American Express, and Explore

17.

The total cost a borrower must pay for a loan including all interest and fees is the

a)

interest

b)

finance charge

c)

overcharge

18.

A measure of your reliability to repay a loan and must be demonstrated to lenders

a)

credit history

b)

creditworthiness

c)

credit rating

d)

character

19.

Installment loans are made at a fixed time each month with a variable interest rate

a)

True

b)

False

20.

The Fair Credit Billing Act helps consumers correct credit card billing

a)

True

b)

False

21.

Married couple should only have credit together, in both of their names

a)

True

b)

False

22.

Interest rates on unsecured loans are generally lower than rates charged for secured loans

a)

True

b)

False

23.

Credit cards are one of the most expensive forms of borrowing

a)

True

b)

False

24.

Flexible expenses are immediately affected if you use credit

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a)

True

b)

False

25.

Consumers should take every credit card offered to them so they will have a variety of choices

a)

True

b)

False