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Personal Finance - Credit and Debt

Total questions: 15

Worksheet time: 8mins

Name
Class
Date
1.

On average, over 70% of college students graduate with student loan debt.

a)

true

b)

false

2.

On average, how much of a person's take-home pay is sent back out for debt payments?

a)

8%

b)

12%

c)

25%

d)

40%

3.

Car loans are just a way of life. You will always have a car payment.

a)

true

b)

false

4.

When you buy things with cash, you will always pay more for the things you buy.

a)

true

b)

false

5.

The FICO score measures all of the following except:

a)

debt history

b)

savings account balance

c)

types of debt

d)

new debt

6.

A fee that a bank, credit card, or other lender charges for the opportunity to purchase something and pay for it over time is called:

a)

interest

b)

dividend

c)

credit

d)

finance rate

7.

Staying away from car payments by driving reliable used cars is what the typical millionaire does.

a)

true

b)

false

8.

Which of the following is not one of the ways that the federal Fair Credit Reporting Act of 1970 protects consumers?

a)

the accuracy of the credit report

b)

the privacy of the consumer

c)

the financial goals of the consumer

d)

the fairness of credit reporting

9.

Which of the following describes the best way to buy a car?

a)

ask your parents to borrow money for the purchase

b)

save up and pay cash for a used car in your price range

c)

save up a nice down payment and finance the remaining cost of the car

d)

allow your grandparents to cosign your loan for a new car

10.

The federal Fair Debt Collection Practices Act of 1977 dictates how:

a)

much debt a person is allowed to carry

b)

much interest a lender can charge

c)

debt collectors can interact with individuals

d)

much of a debt a per must repay

11.

Financial aid that does not need to be repaid; general based on financial need

a)

interest

b)

principal

c)

grants

d)

loans

12.

An assigned number to signal to lenders a person's ability to repay a loan

a)

credit score

b)

credit report

c)

credit ranking

d)

credit card

13.

Of the following, what is the first recommended step for getting out of debt?

a)

use the debt snowball method

b)

get a part-time job or work extra temporarily

c)

sell something

d)

you must save money

e)

quit borrowing more money

14.

The total cost of using credit, including interest and fees

a)

grace period

b)

loan term

c)

finance charge

d)

credit report

15.

Which would not be considered an opportunity cost?

a)

not being able to go to a movie

b)

not being able to go to school

c)

not being able to go out to eat

d)

not being able to buy new shoes