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Consumer Credit

Total questions: 20

Worksheet time: 2hrs 40mins

Name
Class
Date
1.

When you purchase something and you do not pay for it immediately, you are using ...

a)

debit

b)

asset

c)

credit

d)

FICO score

2.

A person (or an organization) that extends the credit is called a ...

a)

debtor

b)

credit extender

c)

creditor

d)

mom

3.

Everything you own. Included in your financial history when applying for credit.

a)

assets

b)

property

c)

earnings

d)

debts

4.

Your ability to earn money now and in the future. Included in your financial history when applying for credit.

a)

credit rating

b)

earning power

c)

assets

d)

future investment

5.

Your credit "report card". Included in your financial history when applying for credit.

a)

assets

b)

earning power

c)

credit rating

d)

progress report

6.

The most common credit score, FICO score, ranges from ...

a)

0 to 100

b)

200 to 700

c)

300 to 850

d)

1 to 1000

7.

If my FICO score is 600, and I am taking out a loan, would the interest my creditor charges me be high or low?

a)

High interest

b)

Low interest

8.

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

a)

customer profile

b)

loan agreement

c)

credit agency

d)

budget

9.

The other name for credit reporting agency is ...

a)

customer agency

b)

credit bureau

c)

FICO

d)

loan agreement

10.

An initial payment made when something is bought on credit is called a ...

a)

Installment plan

b)

Credit purchase

c)

Monthly payment

d)

Down payment

11.

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 (earning power)

d)

a person's family background

12.

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

a)

make a down payment

b)

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

c)

buy a merchandise

d)

pay in specified period of time

13.

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

a)

installments

b)

budgets

c)

deposits

d)

down payments

14.

Tiffany has decided to purchase an $11,000 car. She plans on putting 30% down toward the purchase, and financing the rest. Find her down payment.

a)

$3,300.00

b)

$3,000.00

c)

$330.00

d)

$300.00

15.

Interest can be defined as ...

a)

a charge for lending money

b)

the amount owed for borrowing money

c)

the amount added into your savings account when opening a bank account

d)

a charge for convenience of accessing money in your bank

16.

An interest rate of 25.99% in decimal form is ...

a)

0.02599

b)

0.2599

c)

2.599

d)

25.99

17.

True or False?

The longer the loan term, the less total interest you pay.

a)

True

b)

False

18.

A sum paid or charged for the use of money is called ...

a)

an interest

b)

time

c)

the sales tax

d)

a principal

19.

This is added to the selling price and pays the government.

a)

time

b)

rate

c)

salex tax

d)

interest

20.

When getting a car loan you will want to get the highest or the lowest interest rate?

a)

lowest

b)

highest