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Life in Credit

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

What percentage of purchases in the U.S. are made with credit rather than cash?

a)

25%

b)

80%

c)

55%

d)

5%

2.

What is Capital

a)

The property you possess that is worth more than your debts

b)

Property pledged to assure repayment of a loan

c)

A pre-established amount that can be borrowed on-demand with no collateral

d)

The total dollar amount of all interest and fees you pay for the use of credit

3.

Deferred billing does not allow purchases to be paid until later

a)

True

b)

False

4.

Credit cards are sponsored by which Sponsors

a)

All of the above

b)

American Express

c)

Affinity

d)

Mastercard

5.

There are two types of Finance Companies

a)

True

b)

False

6.

Which are examples of Private lenders?

a)

Non-profit Bank

b)

Girlfriend

c)

Friends

d)

Parents

7.

When you have an all-purpose credit card, you have an automatic line of credit to the limit on the card.

a)

False

b)

True

8.

Close-end credit is often used for

a)

Expensive purchases

b)

Cheap purchases

c)

Regular purchases

d)

All of the above

9.

What is APR?

a)

The total dollar amount of all interest and fees you pay for the use of credit

b)

An agreement to lend the borrower an amount up to a stated limit and allow borrowing up until that limit again

c)

The cost of credit expressed as a yearly percentage

d)

A service available to charge customers until later on

10.

Usury law definition:

a)

Unlicensed lenders who charge illegally high-interest rates

b)

Set maximum interest rates that may be charged for a loan

c)

A pre-established amount that can be borrowed

d)

None of them